LIC Doubles Its Stake in This Low-PE, Zero-NPA NBFC; FII Shareholding Touches Record High
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In a notable recent development, LIC increased its stake in this Navratna CPSE from 1.10 per cent as of December 31, 2025 to 2.54 per cent as of March 31, 2026, effectively more than doubling its holding on a quarter-on-quarter basis
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Indian Railways is set to play a pivotal role in India’s journey towards becoming a Viksit Bharat. Reflecting this importance, the Union Budget 2026–27 has earmarked a record capital expenditure outlay of Rs 2.93 lakh crore for Indian Railways, the highest allocation in its history.
Among the key companies supporting the railway ecosystem financially is Indian Railway Finance Corporation (IRFC). As the dedicated market borrowing arm of Indian Railways, IRFC has played a crucial role in mobilising long-term funds for rail infrastructure at competitive rates. Over the years, the company has financed several entities within the railway ecosystem and has gradually expanded its presence beyond railways into allied infrastructure segments such as power generation, transmission, mining, fuel and coal, Logistics, and urban transport.
IRFC also continues to maintain a strong asset quality profile, with a zero-NPA portfolio, even as it broadens its lending book across related sectors. As of December 31, 2025, the company’s assets under management stood at Rs 4,75,451.25 crore.
In a notable recent development, LIC increased its stake in this Navratna CPSE from 1.10 per cent as of December 31, 2025 to 2.54 per cent as of March 31, 2026, effectively more than doubling its holding on a quarter-on-quarter basis. At the same time, foreign institutional investors raised their stake to 1.16 per cent as of March 31, 2026, marking a record high.
The stock currently trades at a price-to-earnings (PE) multiple of 19.8 times and has surged nearly 18 per cent over the past one month.
Disclaimer: This article is for informational purposes only and not investment advice.