Railway Company Announces Rs 1.05 Dividend per Share & Plans Fund Raising of up to Rs 70,000 Crore

Shares of Indian Railway Finance Corporation Ltd (IRFC) were in focus after the company announced the outcome of its Board of Directors meeting held on March 09, 2026. In its exchange filing, the company informed that the board has approved the declaration of the second interim dividend for the financial year 2025–26, also approved a market borrowing programme of up to Rs 70,000 crore for the financial year 2026–27 to meet its funding requirements.

IRFC Second Interim Dividend for FY2025–26

The Board of Directors of Indian Railway Finance Corporation Ltd has approved the declaration of a second interim dividend of Rs 1.05 per equity share with a face value of Rs 10 each for the financial year 2025–26. The company has fixed March 13, 2026, as the record date to determine the eligibility of shareholders for receiving the dividend.

The company stated that the dividend will be paid within 30 days from the date of declaration to shareholders whose names appear in the records of the depositories or in the register of members as of the record date.

IRFC Market Borrowing Programme for FY 2026–27

The Board of Indian Railway Finance Corporation Ltd has also approved a market borrowing programme of up to Rs 70,000 crore for the financial year 2026–27. The company may raise funds in one or more tranches depending on market conditions and funding requirements.

The borrowing may be undertaken through various domestic and offshore instruments, including bonds, loans, global medium-term notes, ESG bonds, foreign currency bonds, and other financing structures permitted by regulatory authorities. The funds will primarily be used to meet the financing needs of Indian Railways, refinance existing borrowings, and support general corporate purposes.

External Commercial Borrowing Agreement

Earlier this year, on February 25, 2026, Indian Railway Finance Corporation Ltd (IRFC) also entered into a loan agreement for a JPY-equivalent USD 400 million External Commercial Borrowing (ECB) with a consortium of Japanese Banks. The borrowing was arranged to support the company’s funding requirements and strengthen its access to international capital markets

Impact on the Company

The approval of a market borrowing programme of up to Rs 70,000 crore for FY 2026–27 may strengthen Indian Railway Finance Corporation Ltd’s (IRFC) ability to raise funds for financing the requirements of Indian Railways and refinancing existing liabilities. Also, the declaration of the second interim dividend for FY 2025–26 reflects the company’s continued approach of maintaining shareholder returns while carrying out its financing operations.

Indian Railway Finance Corporation Ltd has a market capitalisation of around Rs 1,27,745 crore. The company reports a return on equity (ROE) of about 12.8 per cent and a return on capital employed (ROCE) of around 5.83 per cent. It has maintained a dividend payout of approximately 31.2 per cent. The stock has recorded a 52-week high of Rs 148.95, while the 52-week low is Rs 95.27.

Disclaimer: The article is for informational purposes only and not investment advice.