📝 Introduction
Indian Railway Finance Corporation (IRFC) has released its Q4 FY25 results, showcasing steady revenue performance and a marginal uptick in profits. The company maintained healthy operating margins, despite modest growth in income. As a key player in the term-lending space, IRFC’s consistent delivery reinforces its strategic importance in railway infrastructure financing.
💡 Financial Highlights
| Particulars | Q4 FY25 (Mar 2025) | Q4 FY24 (Mar 2024) | QoQ Growth | YoY Growth |
|---|---|---|---|---|
| Revenue (Sales) | ₹6,723 Cr | ₹6,475 Cr | -0.60% | 3.80% |
| Expenses | ₹44 Cr | ₹34 Cr | 29.40% | 29.40% |
| Operating Profit (EBIT) | ₹6,679 Cr | ₹6,441 Cr | -0.70% | 3.70% |
| Other Income | ₹1 Cr | ₹3 Cr | -66.70% | -97.20% |
| Interest Cost | ₹4,996 Cr | ₹4,725 Cr | -1.90% | 5.70% |
| Depreciation | ₹1 Cr | ₹2 Cr | -50.00% | 0.00% |
| Profit Before Tax | ₹1,682 Cr | ₹1,717 Cr | 3.10% | -2.00% |
| Net Profit | ₹1,682 Cr | ₹1,717 Cr | 3.10% | -2.00% |
| EPS (Rs.) | ₹ 1.29 | ₹ 1.31 | 3.10% | -1.50% |
💸 Dividend Announcement
No dividend announcement was made in this quarter by IRFC.
📈 Key Financial Metrics
Comparative Snapshot:
| Metric | Mar-25 | Dec-24 | Mar-24 |
|---|---|---|---|
| Sales | ₹6,723 Cr | ₹6,764 Cr | ₹6,475 Cr |
| Operating Profit | ₹6,679 Cr | ₹6,724 Cr | ₹6,441 Cr |
| Net Profit | ₹1,682 Cr | ₹1,631 Cr | ₹1,717 Cr |
- YoY Summary: Sales grew 3.8% YoY while net profit remained flat, showing operational efficiency.
- QoQ Summary: Marginal dip in revenue (-0.6%) offset by a 3.1% rise in net profit due to reduced interest and depreciation costs.
📊 Key Financial Ratios
| Ratio | Mar-25 | Dec-24 | Mar-24 |
|---|---|---|---|
| Operating Margin | 99% | 99% | 99% |
| Net Profit Margin | 25.00% | 24.10% | 26.50% |
| EPS (Rs.) | 1.29 | 1.25 | 1.31 |
- Trend: Margins remain consistently strong near 99%, EPS shows marginal fluctuations QoQ and YoY.
📋 Peer Comparison
| Company | CMP (₹) | Market Cap (Cr.) | P/E | P/B | ROE % | ROCE % | 52W High | 52W Low |
|---|---|---|---|---|---|---|---|---|
| IRFC | 141.65 | ₹1,85,115 Cr | 28.47 | 3.57 | 12.77 | 5.83 | 229.05 | 108.04 |
| Power Fin. Corpn. | 422.25 | ₹1,39,346 Cr | 6.25 | 1.26 | 21.33 | 9.85 | 580.35 | 357.25 |
| REC Ltd | 409.85 | ₹1,07,922 Cr | 6.78 | 1.37 | 21.5 | 9.96 | 654 | 357.35 |
| Indian Renewable | 176.85 | ₹47,533 Cr | 27.99 | 4.64 | 18.05 | 9.57 | 310 | 137 |
| IFCI | 52.05 | ₹14,023 Cr | 8.61 | 1.63 | 2.6 | 8.08 | 91.4 | 35.67 |
🔍 Strategic Developments
- IRFC continues to play a crucial role in funding Indian Railways’ infrastructure capex.
- No major strategic announcements or KPIs like disbursements or project pipeline updates were made in this quarter.
- Management maintains a positive outlook on long-term funding requirements for national infrastructure.
✅ Positives & ⚠️ Negatives
✅ Positives This Quarter:
- Stable operating margins at 99%.
- Sequential growth in net profit.
- Consistent performance across quarters despite interest cost fluctuations.
- EPS maintained with minimal volatility.
⚠️ Negatives / Challenges This Quarter:
- YoY net profit growth flat due to higher interest burden.
- Lack of strategic KPIs and future guidance.
- No dividend declaration dampened short-term investor sentiment.
📉 Market Reaction & Street View
- Market Reaction: Stock traded sideways post-results as the numbers were largely in-line with expectations.
- Brokerage Views:
- Motilal Oswal: Maintains “Buy” with a target of ₹165 citing stable asset quality.
- ICICI Securities: Neutral stance due to lack of major upside catalysts.
🔭 Final Outlook
IRFC has posted a steady set of numbers with strong operating performance and consistent profit margins. While growth remained modest, the company’s stable fundamentals and strategic importance to Indian Railways position it well for long-term gains. Investors can view the stock as a low-risk, stable-yielding investment in the infrastructure finance space.
🔗 External Links
For detailed financials and official updates, visit: Official Company Site
⚠️ Disclaimer
This summary is based on publicly available information from official filings, press releases, and financial news sources. It is provided for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions.