IRFC Q3 Results: Net profit grows 10.5% YoY to ₹1,802 crore; revenue down 1.5%

State-owned Indian Railway Finance Corporation (IRFC) on Monday said that its net profit jumped 10.5% year-over-year (YoY) to ₹1,802 crore for the third quarter ended December 2025, compared to a profit of ₹1,631 crore in the previous corresponding quarter of last year.

The revenue from operations for the quarter stood at ₹6,661 crore, down 1.5% from ₹6,763 crore reported in the same quarter last year.

The company’s total expenses stood at ₹4,917.04 crore in the third quarter ended December, compared to ₹4,594.93 crore in the second quarter of FY26, witnessing a 7% increase in expenses quarter-over-quarter. The company’s total expenses in the third quarter of last year was at ₹5,135.73 crore.

The company announced in an exchange filing that the Net Interest Margin (NIM) for the quarter increased by more than 8% year-over-year, aided by value-enhancing disbursements across various segments and a careful approach to liability management under IRFC 2.0.

For the quarter, total income reached ₹6,719.23 crore, while income for the nine-month period amounted to ₹20,009.38 crore, fueled by business growth driven by diversification.

The firm noted that a slight decline in quarterly income compared to the previous year was primarily due to a one-year extension of a moratorium provided by the Ministry of Railways for a project lease agreement, which affected revenue recognition during this period.

"The quarter reflects strong execution under IRFC 2.0. Our Q3 performance demonstrates the resilience of IRFC's business model and the effectiveness of diversification across both core railway financing and allied infrastructure segments.

Importantly, we have already achieved our annual sanction guidance of ₹60,000 crore within nine months itself, which underlines the robustness of our pipeline and the speed of execution," said Manoj Kumar Dubey, Chairman and Managing Director of IRFC.

At the end of the quarter, assets under management increased to an all-time high of ₹4.75 lakh crore, even without new business from the Railways. The firm also kept its "Zero NPA" status intact.

"Looking ahead, IRFC expects the positive impact of higher-margin diversified lending and fresh project agreements with Indian Railways, following the completion of the moratorium period, to become more visible from the next financial year," Dubey said.

IRFC share price today

Following Q3 results, IRFC share price today was trading nearly 1% lower on the BSE at ₹121.15 per share.

Anshul Jain, Head of Research at Lakshmishree, said that the Indian Railway Finance Corporation has spent the last 52 weeks locked in a broad consolidation range between 147.77 and 106.47, with price failing to respond to the pre-budget rally seen across PSU names.

“A decisive breakdown below 106 would mark range resolution and is likely to trigger a fresh leg lower post budget. Once breached, downside risk opens sharply as long liquidation accelerates. Risk–reward remains skewed lower, with no technical evidence of institutional support at current levels,” said Jain.

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