IRFC Q3 Results: Railway PSU reports highest-ever PAT; Check revenue and key details

IRFC Q3 Results: State-owned Indian Railway Finance Corporation (IRFC) on Monday reported a 10.5 per cent year-on-year rise in net profit for the third quarter ended December 31, 2025, supported by higher margins and diversification-led growth.

Profit after tax (PAT) for the quarter stood at Rs 1,802.19 crore, marking the highest-ever quarterly profit in the company’s history. This compares with Rs 1,631 crore in the corresponding quarter last year.

For the nine-month period ended December 31, 2025, PAT rose 10.47 per cent year-on-year to Rs 5,324.86 crore, against Rs 4,820.13 crore in the same period last year.

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Revenue and margins

Revenue from operations declined 1.5 per cent year-on-year to Rs 6,661 crore in the December quarter, compared with Rs 6,763 crore a year ago.

IRFC said its net interest margin improved by more than 8 per cent year-on-year during the quarter, aided by value-enhancing disbursements across segments and a disciplined approach to liability management under the IRFC 2.0 framework.

Total income for the quarter came in at Rs 6,719.23 crore, while income for the nine-month period stood at Rs 20,009.38 crore, driven by diversification beyond core railway financing.

The company said the slight decline in quarterly income was largely due to a one-year extension of a moratorium granted by the Ministry of Railways for a project lease agreement, which deferred revenue recognition.

Expenses and balance sheet

Total expenses rose 7 per cent sequentially to Rs 4,917.04 crore in the December quarter, compared with Rs 4,594.93 crore in the September quarter of FY26. On a year-on-year basis, expenses declined from Rs 5,135.73 crore.

Assets under management increased to an all-time high of Rs 4.75 lakh crore at the end of the quarter, even without fresh business from Indian Railways. The company also maintained its zero non-performing asset status.

Management commentary and outlook

“The quarter reflects strong execution under IRFC 2.0. Our Q3 performance demonstrates the resilience of IRFC’s business model and the effectiveness of diversification across core railway financing and allied infrastructure segments,” said Manoj Kumar Dubey, chairman and managing director of IRFC.

He added that IRFC has already achieved its annual sanction guidance of Rs 60,000 crore within the first nine months of the financial year, highlighting a robust pipeline and faster execution.

Looking ahead, the company expects the impact of higher-margin diversified lending and fresh project agreements with Indian Railways, following the end of the moratorium period, to become more visible from the next financial year.

IRFC share price

Following the Q3 results, IRFC shares were trading nearly 1 per cent lower on the BSE at Rs 121.15 per share.