Indian Railway Finance Corporation Ltd

About Indian Railway Finance Corporation Ltd

Indian Railway Finance Corporation Ltd (IRFC) is the dedicated financing arm of the Indian Railways, a Public Sector Undertaking under the Ministry of Railways, Government of India. It primarily mobilizes funds from financial markets to finance the acquisition of rolling stock and railway infrastructure assets for the Indian Railways and other railway entities.

Key Financial Ratios

• P/E Ratio (TTM): Price to Earnings ratio shows how much an investor pays for every rupee of the company's earnings. Indian Railway Finance Corporation Ltd's P/E ratio (TTM) is 16.40, compared to the industry median of 9.72 and large cap median of 10.63.

• P/B Ratio: Price to Book ratio compares a company's market price to its book value per share. Indian Railway Finance Corporation Ltd's P/B ratio is 2.03, compared to the industry median of 2.03 and large cap median of 1.49.

• P/S Ratio: Price to Sales ratio compares a company's market value to its total revenue. Indian Railway Finance Corporation Ltd's P/S ratio is 4.36, compared to the industry median of 3.50 and large cap median of 2.72.

• PEG Ratio: PEG ratio adjusts the P/E ratio for expected earnings growth. Indian Railway Finance Corporation Ltd's PEG ratio is 1.10.

• EV/EBITDA Ratio: This ratio compares a company's enterprise value to its earnings before interest, tax, depreciation, and amortization. Indian Railway Finance Corporation Ltd's EV/EBITDA ratio is 20.52.

• Return on Equity (ROE): ROE measures how much profit a company generates from shareholders' invested capital. Indian Railway Finance Corporation Ltd's ROE is 12.35%.

• Return on Assets (ROA): ROA measures how efficiently a company converts its assets into net profit. Indian Railway Finance Corporation Ltd's ROA is 1.35%.

• Return on Capital Employed (ROCE): ROCE measures how efficiently a company generates profit from all the capital it employs. Indian Railway Finance Corporation Ltd's ROCE is 47.60%.

• Operating Margin: Operating margin shows what percentage of revenue remains after covering operating expenses. Indian Railway Finance Corporation Ltd's operating margin is 25.52%.

• Net Margin: Net margin shows what percentage of revenue converts into final net profit. Indian Railway Finance Corporation Ltd's net margin is 25.69%.

• Current Ratio: The current ratio measures a company's ability to pay short-term liabilities using short-term assets. Indian Railway Finance Corporation Ltd's current ratio is 22.02.

• Debt to Equity Ratio: This ratio shows the proportion of debt a company uses relative to shareholders' equity. Indian Railway Finance Corporation Ltd's debt-to-equity ratio is 0.

• Interest Coverage Ratio: This ratio shows how easily a company can pay interest on its outstanding debt from its operating earnings. Indian Railway Finance Corporation Ltd's interest coverage ratio is 1.35.

• Dividend Per Share (DPS): DPS shows the total dividend paid per share in the latest financial year. Indian Railway Finance Corporation Ltd's DPS is ₹0.

• Earnings Per Share (EPS): EPS shows how much profit is allocated to each outstanding share. Indian Railway Finance Corporation Ltd's EPS is 7.63.

(Source line: "Ratios as of 11 Aug 2026, based on last traded price of ₹87.91. Data sourced from BSE/NSE Exchange Filings & Public Terminal Data.")

Key Facts

• Founded: 1986
• Headquarters: New Delhi, Delhi
• Core Offerings: Leasing of rolling stock, Project financing, Leasing of railway infrastructure assets, Debt mobilization
• Stock Listing: NSE (IRFC), BSE (543257)
• Promoter: Government of India

History of Indian Railway Finance Corporation Ltd

• 1986: Incorporated as a wholly-owned Public Sector Undertaking (PSU) under the Ministry of Railways, Government of India.
• Objective: To raise financial resources for funding the acquisition of rolling stock (locomotives, coaches, wagons) and other railway infrastructure assets.
• Evolution: Expanded its mandate over the decades to include financing various capital expenditure needs and projects of Indian Railways.
• 2021: Successfully listed on Indian stock exchanges (NSE/BSE) through an Initial Public Offering (IPO).
• Present: Continues to be the primary financial institution for supporting the modernization and expansion plans of Indian Railways.

Business Segments and Revenue Mix

• Leasing of Rolling Stock: Provides funding for the procurement of new rolling stock, which is then leased to the Ministry of Railways.
• Project Financing: Finances various railway infrastructure projects such as track doubling, electrification, new line construction, and station redevelopment.
• Resource Mobilization: Raises funds from domestic and international markets through a mix of debt instruments, including tax-free bonds, debentures, and foreign currency borrowings, to support its lending and leasing operations.

Key Personnel

Smt. Shelly Verma, Chairman & Managing Director (Addl. Charge): A seasoned financial professional with extensive experience in corporate finance, resource mobilization, and public sector management, guiding IRFC's strategic financial direction.

Subsidiaries and Associate Companies

No major subsidiaries reported.

Corporate Actions

No major recent corporate actions on record apart from regular dividend payouts.

References

1. Annual Report 2023-24
2. Exchange Filings (NSE/BSE)
3. Financial Results Announcement