IRFC Delivers Record H1 Profit of ₹3,523 Crores and Declares Interim Dividend of ₹1.05 per Share

Published on 27 October 2025 22:45:00 updated on 27 October 2025 22:55:00

The state-owned infrastructure financier IRFC has delivered a standout performance in the first half (H1) of FY26, chalking up its highest-ever profit at ₹3,523 crores.
In parallel, the company’s Board has approved an interim dividend of ₹1.05 per equity share, underscoring management’s confidence and commitment to shareholder returns. Angel One+1

Key Highlights

• Profit After Tax (PAT) for H1: ~ ₹3,523 crores, up ~10% year-on-year.
• Net Interest Margin (NIM) improved to ~1.55% (annualised) signalling better asset quality and higher margin business.
• Asset Under Management (AUM) and net worth have both reached record levels — reinforcing the infrastructure-finance strength of the company.
• Zero NPAs continue to be maintained, illustrating strong risk‐management.
• Interim dividend of ₹1.05 per share, with record date set for 24 October 2025. Elite Wealth

What’s driving the growth?

IRFC’s strategic diversification beyond traditional railway-asset financing is showing results. Though the allocation from Indian Railways remains static, the firm has successfully spread into areas like power / transmission, coal-mining infrastructure and other allied sectors — capturing higher margin opportunities.

The improved NIM indicates that IRFC is getting better yields on its book even in a constrained environment. The zero-NPA status gives comfort regarding asset quality.

Why this matters for investors

• The strong profit number plus dividend reinforce IRFC’s position as a financially disciplined PSU in India’s infrastructure-finance space.
• If you hold the stock and were eligible by the record date, the dividend adds to total return.
• Longer-term, the shift into diversified infrastructure assets (beyond railway rolling stock) may provide higher growth potential, though competition and regulatory caps (e.g., single-client exposure limits) remain.
• Risk remains from macro-factors: interest-rate changes, asset-quality in new segments, regulatory constraints.

Outlook

With H1 up strongly, IRFC is positioned favourably for H2 of FY26. If the diversification momentum sustains and margins hold, full-year numbers could further beat expectations. The dividend payout also signals the management is confident of cash-flows. Investors should watch the next quarterly update for guidance on AUM growth, sector breakdown and margin trends.