Railway Company Reports Highest-ever PAT with Double-Digit Growth on the Back of Strategic Diversification and Improved NIM
DSIJ Intelligence-1 / 16 Oct 2025/ Categories: Multibaggers, Trending
The stock is up by 16.34 per cent from its 52-week low of Rs 108.05 per share and has given multibagger returns of 485 per cent in 3 years.
Railway-finance-corporation-ltd-217280">Indian Railway Finance Corporation (IRFC), the dedicated 'Navratna' financing arm of the Ministry of Railways, announced its highest-ever Profit After Tax (PAT) for the half-year ending September 30, 2025, driven by strategic diversification and improved margins. The company reported a half-yearly PAT of Rs 3,522.67 crores, marking a robust 10.45 per cent double-digit growth compared to the same period last year. This strong financial health is further highlighted by the total income reaching Rs 13,290.15 crores for the half-year, supported by effective liability management.
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The impressive performance is largely attributed to a significant pivot towards strategic diversification into new business segments beyond Indian Railways. During the first half of the fiscal year, IRFC sanctioned and executed new business agreements aggregating a substantial Rs 45,382 crore across various railway-linked sectors, including renewable energy, power generation, energy transmission and industrial infrastructure. This figure represents a nearly nine-fold increase from the previous financial year and has led to a major upward trajectory in Assets Under Management (AUM), which now stands at Rs 4.62 lakh crore.
This successful expansion strategy has led to a notable enhancement in profitability and efficiency. The new transactions were concluded at value-accretive spreads, resulting in an improved Net Interest Margin (NIM) of 1.55 per cent (annualised), a trend visibly reflected in the double-digit PAT growth. Furthermore, IRFC's overall financial strength hit new milestones, reporting the highest-ever Net Worth of Rs 56,193.85 crore and an annualised Earnings Per Share (EPS) of Rs 5.39 per share.
In line with this sustained growth and commitment to shareholder value, the Board of Directors declared the highest-ever interim dividend of RS 1.05 per share. With the strategic diversification gaining significant momentum and the new business lines expected to further mature, IRFC is well-positioned to continue expanding its asset base and sustain the upward trajectory in NIMs, reinforcing its status as a leading and strategic infrastructure financier in the country.
The company has a market cap of Rs 1.63 lakh crore. The stock is up by 16.34 per cent from its 52-week low of Rs 108.05 per share and has given multibagger returns of 485 per cent in 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.