IRFC profit grows 10.40% as interest costs outpace revenue
Standalone revenue rose 19.46% YoY, but interest costs grew 25.30%; other income and zero tax also supported reported profit.
Filed 30 Jul 2026, 14:18 IST · Indian Railway Finance Corporation Ltd (IRFC)
Key takeaways
- Standalone net profit rose 10.40% YoY to Rs 1,927.21 cr, even as interest expense grew 25.30%.
- Operating margin expanded 1.10 percentage points QoQ because revenue grew 12.61% while expenses fell 64.46%.
- Other income contributed 6.76% of pre-tax profit, while the zero tax rate remained unchanged from a year earlier.
Price around the results
Revenue growth lifted standalone profit despite funding costs
Standalone revenue increased 19.46% YoY and 12.61% QoQ, while net profit rose 10.40% YoY and 14.42% QoQ. Interest expense grew faster than revenue on a yearly basis, rising 25.30%, but the decline in expenses and higher other income supported pre-tax profit. Other income rose to Rs 130.23 cr from Rs 2.86 cr a year earlier and negative Rs 7.37 cr in the previous quarter.
Margin rebound follows a four-quarter slide
Operating margin expanded 0.17 percentage points YoY and 1.10 percentage points QoQ because expenses fell 10.44% YoY and 64.46% QoQ. The margin had declined for four consecutive quarters, from 99.34% in Q4FY25 to 98.39% in Q4FY26, before this quarter's recovery to 99.49%. IRFC's margin was 36.48 percentage points above the 63.01% median for 35 Financial Services peers that had reported.
Other income and zero tax shape earnings quality
Other income accounted for 6.76% of pre-tax profit, so reported earnings were not entirely generated by operating income. Net profit equalled pre-tax profit because the tax rate was 0.00%, unchanged both YoY and QoQ.
Current reaction is too early; past moves were mixed
The current market response is still too early to assess. In the last eight result reactions, the stock rose three times and fell five, with a median absolute move of 1.27%.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹8,261 cr | ₹7,336 cr | +12.61% | +19.46% |
| Other income | ₹130 cr | ₹-7 cr | — | +4453.50% |
| Expenses | ₹42 cr | ₹118 cr | -64.46% | -10.44% |
| Operating profit | ₹8,219 cr | ₹7,218 cr | +13.87% | +19.66% |
| Operating margin (%) | 99.49% | 98.39% | — | — |
| Interest | ₹6,421 cr | ₹5,524 cr | +16.23% | +25.30% |
| Depreciation | ₹1 cr | ₹2 cr | -40.72% | -13.53% |
| Profit before tax | ₹1,927 cr | ₹1,684 cr | +14.42% | +10.40% |
| Tax | ₹0 cr | ₹0 cr | — | — |
| Net profit | ₹1,927 cr | ₹1,684 cr | +14.42% | +10.40% |
| EPS (₹) | ₹1.47 | ₹1.29 | +13.95% | +9.70% |
Operating margin of 99.49% compares with a Financial Services sector median of 63.01% across 35 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 99.49% after the four-quarter decline.
- Whether interest-cost growth moderates from 25.30% YoY relative to 19.46% revenue growth.
- Whether other income remains near its 6.76% share of pre-tax profit.