New Delhi, 14 May (H.S.):

Indian Railway Finance Corporation (IRFC), a Navratna public sector undertaking under the Ministry of Railways, has achieved a strong financial performance in FY 2025-26, registering a 7.80% increase in profit after tax (PAT). The company's net profit rose to Rs 7,009.17 crore, up from Rs 6,502 crore in the previous FY 2024-25.

In its financial results released on Wednesday, the company stated that FY 2025-26 was its first full year of strategic diversification, expanding beyond the traditional railway financing model into various infrastructure financing sectors. The company's assets under management (AUM) reached a record Rs 4.85 lakh crore, while total assets crossed Rs 5 lakh crore for the first time.

IRFC Chairman and Managing Director Manoj Kumar Dubey said FY26 has been a transformative year for the company. He added that the diversification strategy has delivered better spreads, higher margins, and greater value for shareholders. He noted that the company has maintained its strong tradition of zero NPAs.

According to the company, during FY 2025-26, it approved projects worth Rs 72,949 crore and disbursed approximately Rs 35,067 crore. IRFC has expanded financing activities beyond railway-related sectors into power generation, renewable energy, transmission, fertilizers, and railway-linked infrastructure.

During this period, IRFC refinanced a World Bank loan for Dedicated Freight Corridor Corporation of India Limited (DFCCIL) through a long-term rupee-based facility of Rs 9,821 crore, resulting in savings of about Rs 2,700 crore. Additionally, the company completed a Rs 12,842 crore refinancing deal for Hindustan Urvarak & Rasayan Limited (HURL).

The company's net interest margin (NIM) improved to 1.50%, a 6% increase from the previous year. IRFC stated that opportunities in metro, ports, and other emerging infrastructure sectors are expected to accelerate growth in the coming fiscal year.

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Hindusthan Samachar / Jun Sarkar