IRFC profit rises 10.21% YoY despite 30.21% rise in interest
Revenue grew 23.45% YoY, but sequential revenue fell 4.78% as interest costs declined 7.85%.
Filed 15 Oct 2026, 15:20 IST · Indian Railway Finance Corporation Ltd (IRFC)
Key takeaways
- Standalone net profit rose +10.21% YoY to Rs 1,958.48 cr, as revenue grew +23.45% while interest expense rose +30.21%.
- Sequentially, profit increased +1.62% even as revenue fell -4.78%, because interest expense declined -7.85%.
- Operating margin was 99.40%, 39.54 percentage points above the 59.86% median for 11 reported Financial Services peers.
Price around the results
Interest costs limited the YoY profit conversion
IRFC's standalone revenue rose +23.45% YoY, while expenses fell -4.74%, lifting operating profit by +23.67%. Interest expense increased +30.21%, which held profit before tax and net profit growth to +10.21%. The 0% tax rate meant profit before tax translated fully into net profit, but that rate was unchanged from a year earlier.
Lower interest costs supported sequential profit
Revenue declined -4.78% QoQ while expenses rose +11.66%, narrowing operating margin by 0.09 percentage points. However, interest expense fell -7.85%, allowing profit before tax to rise +1.62% and EPS to increase +2.04%. Other income contributed 2.96% of profit before tax, so it was not the main driver of earnings.
Margin remains well above the reported peer median
Operating margin improved 0.17 percentage points YoY to 99.40%, despite the small sequential decline. The margin has recovered from 98.39% in Q4FY26 to 99.49% in Q1FY27 and 99.40% in Q2FY27, rather than extending the earlier decline. It was 39.54 percentage points above the 59.86% median for 11 Financial Services peers that had reported.
The historical post-result pattern leans negative
The current post-result market move is not yet established. After the last eight results, the stock fell five times and rose three times, with a median absolute move of 1.17%.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,866 cr | ₹8,261 cr | -4.78% | +23.45% |
| Other income | ₹58 cr | ₹130 cr | -55.43% | +290150.00% |
| Expenses | ₹47 cr | ₹42 cr | +11.66% | -4.74% |
| Operating profit | ₹7,820 cr | ₹8,219 cr | -4.86% | +23.67% |
| Operating margin (%) | 99.40% | 99.49% | — | — |
| Interest | ₹5,917 cr | ₹6,421 cr | -7.85% | +30.21% |
| Depreciation | ₹2 cr | ₹1 cr | +80.00% | +53.33% |
| Profit before tax | ₹1,958 cr | ₹1,927 cr | +1.62% | +10.21% |
| Tax | ₹0 cr | ₹0 cr | — | — |
| Net profit | ₹1,958 cr | ₹1,927 cr | +1.62% | +10.21% |
| EPS (₹) | ₹1.50 | ₹1.47 | +2.04% | +10.29% |
Operating margin of 99.40% compares with a Financial Services sector median of 59.86% across 11 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds near 99.40% after the 0.09 percentage-point sequential decline.
- Whether interest expense remains below Rs 5,917.08 cr after falling -7.85% QoQ.
- Whether revenue recovers from Rs 7,866.41 cr after the -4.78% sequential decline.