IRFC shares snap 4-session losing streak; railway stock rises 2% on dividend hopes

Snapping four sessions losing streak, shares of state-owned Indian Railway Finance Corporation (IRFC) climbed nearly 2% in intraday trade today amid value buying. The railway stock gained momentum today amid hopes that its board would consider dividend today. In the past one year, IRFC, a Navratna PSU company, has declared an equity dividend amounting to ₹1.50 per share.

Early today, IRFC shares opened marginally higher by 0.25% at ₹118 against Thursday’s closing level of ₹117.70 on the BSE. During the session so far, the PSU stock gained 1.6% to hit an intraday high of ₹119.70, while its market capitalisation climbed to ₹1.55 lakh crore.

IRFC, in sync with other railway stocks, has witnessed sharp correction in recent past, with its stock price hitting 52-week low of ₹108.05 on March 3, 2025, falling nearly 53% from its 52-week high of ₹229.05 touched on July 15, 2024. In the last one year, the counter has lost nearly 12%, while it plunged 26% in six months and nearly 21% in the calendar year 2025.

IRFC Dividend History

Since its listing in 2021, IRFC has paid dividend on 8 occasions to its shareholders, amounting to ₹6.25 per share. In 2021, 2022, 2023 and 2024, IRFC paid total dividend of ₹1.82, ₹1.43, ₹1.50, and ₹1.50, respectively, on face value of ₹10 apiece. At the current share price, IRFC’s dividend yield stands at 1.27%.

In a filing on March 10, IRFC informed exchanges that its board will meet on March 17, 2025, to consider declaration of second interim dividend to the shareholders.

“A meeting of the board of directors of the company is scheduled to be held on Monday, 17th March 2025, inter-alia, to consider declaration of second interim dividend to the shareholders of the company for the financial year 2024-25,” the filing read.

The PSU company has fixed March 21, 2025, as the record date for determining the entitlements of the shareholders for the payment of interim dividend, subject to the approval of the proposal by the board of directors.

IRFC gets ‘navratna’ status

Early this month, IRFC secured the ‘Navratna’ status from the Government of India on March 3. In a social media post on X, the Department of Public Enterprises announced that the government has approved the upgradation of Indian Railway Catering and Tourism Corporation (IRCTC) and IRFC to Navratna CPSEs, making them the 25th and 26th 'Navratnas' among Central Public Sector Enterprises (CPSEs). With these two new entrants, seven listed railway PSU companies have been given 'Navratna' status. Of the 12 railway CPSEs, Concor, RVNL, IRCON, RITES and RailTel were elevated earlier.

The Navratna status, introduced by the government in 1997, is awarded to Miniratna companies in recognition of their strong financial and market performance. This status grants these companies greater autonomy, allowing them to invest up to ₹1,000 crore or 15% of their net worth in a single project without government approval, and up to 30% of their net worth annually, provided it does not exceed ₹1,000 crore. They can also establish overseas subsidiaries, form joint ventures, and engage in mergers and acquisitions to enhance their market position and operational efficiency.

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