Indian Railway Finance Corporation Limited published its unaudited financial results for the quarter ended June 30, 2026, in English and regional (Hindi) newspapers on July 31, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Navratna Central Public Sector Enterprise reported a record Profit After Tax (PAT) of ₹1,927.21 crore, a 10.40% year-on-year increase, driven by a surge in lease income that offset a decline in traditional interest income. This publication confirms the wide dissemination of the company’s strongest-ever quarterly performance, where total income reached ₹8,391.34 crore.

The Board of Directors approved the results at a meeting held on July 30, 2026. The financial statements were subjected to a limited review by joint statutory auditors O.P. Totla & Co. and KGRS & Co., who issued an unmodified conclusion. The filing was submitted in compliance with Regulations 30, 33, 47, 52, and 54 of the SEBI LODR Regulations, 2015. Company Secretary Vijay Babulal Shirode certified the submission, enclosing clippings from both English and Hindi dailies to ensure transparency and accessibility for all stakeholders.

Financial Highlights

Lease income emerged as the primary growth driver, surging to ₹7,094.47 crore from ₹5,403.75 crore in Q1FY26. This growth compensated for a decline in interest income, which fell to ₹1,147.56 crore from ₹1,497.32 crore during the same period last year. Total revenue from operations reached ₹8,261.11 crore, compared to ₹6,915.38 crore in the corresponding quarter of the previous fiscal year.

Operating expenses totaled ₹6,464.13 crore, with finance costs accounting for ₹6,421.04 crore. The company reported no tax expense for the period, consistent with its election under Section 115BAA of the Income Tax Act, 1961. Other comprehensive income contributed ₹115.98 crore, largely driven by fair value changes in foreign currency borrowings and cost of hedging reserves.

What the Numbers Show

The divergence between interest income and lease income highlights the structural shift in IRFC’s asset base. While traditional interest income declined by 23.35%, lease income grew by 31.29%, reflecting the maturation of infrastructure projects previously under gestation. Specifically, lease receivables amounting to ₹1,64,768.83 crore were recognized with effect from March 24, 2026, for projects including EBR IF 2019-20, EBR IF 2020-21, and EBR S. This recognition timing aligns with the completion of moratorium periods for these railway infrastructure assets, boosting top-line visibility without immediate cash flow impact on interest accruals.

Chairman and Managing Director Manoj Kumar Dubey attributed the results to the robustness of the diversification strategy and disciplined liability management. The company’s Assets Under Management stood at ₹4.79 lakh crore as on June 30, 2026, slightly down from ₹4.85 lakh crore in March 2026. The debt-equity ratio improved marginally to 7.43 times from 7.69 times at the end of FY26. All credit rating agencies—CRISIL, ICRA, and CARE—maintained AAA/Stable ratings for the company.

The statutory auditors highlighted that the composition of the Board of Directors, Audit Committee, Nomination and Remuneration Committee, Stakeholders' Relationship Committee, and Risk Management Committee was not in compliance with applicable provisions of the Companies Act, 2015, SEBI LODR Regulations, and Department of Public Enterprises guidelines as on June 30, 2026. However, this did not modify their audit conclusion. Additionally, the Government of India disinvested 1.75% of its holdings through an Offer for Sale in June 2026, reducing its stake to 82.90% from 84.65%.

Indian Railway Finance Corporation Ltd , a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Railways (MoR) and registered as a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI) and Infrastructure Finance Company (NBFC-IFC) with the Reserve Bank of India (RBI), has published its Business Responsibility & Sustainability Report (BRSR) for FY 2025-26. The report covers the period from April 1, 2025 to March 31, 2026 and has been independently assured by JointValues ESG Services Pvt. Ltd. under the International Standard on Assurance Engagements (ISAE) 3000 (Revised). Established in 1986 as the dedicated market borrowing arm for the Indian Railways, IRFC meets the predominant portion of Extra Budgetary Resources (EBR) requirements of the Indian Railways through market borrowings.

Key Financial and CSR Disclosures

IRFC's CSR is applicable under Section 135 of the Companies Act, 2013. The following table summarises the key financial parameters disclosed in the BRSR:

Business Activities and Strategic Diversification

IRFC's primary business activities include financing the acquisition of rolling stock assets, leasing of railway infrastructure assets and national projects of the Government of India, and lending to other entities under the MoR. The company has initiated a focused diversification strategy (IRFC 2.0) to finance projects with forward and backward linkages for Railways, expanding into sectors such as power generation and transmission, mining, fuel, coal, metro rail, fertilizer, and logistics.

During FY 2025-26, IRFC entered into Memoranda of Understanding (MoUs) with the following entities for strategic collaboration:

• VOCPA – V.O. Chidambaranar Port Authority
• RITES – Rail India Technical and Economic Service
• DMRC – Delhi Metro Rail Corporation
• IIFCL – India Infrastructure Finance Company Limited
• REMCL – Railway Energy Management Company Limited
• MMRDA – Mumbai Metropolitan Region Development Authority
• JNPA – Jawaharlal Nehru Port Authority
• SFCL – Sagarmala Finance Corporation Limited

Environmental Performance (BRSR Core)

The BRSR Core environmental disclosures for FY 2025-26, as independently assured by JointValues ESG Services Pvt. Ltd., are presented below:

Scope 1 emissions arise on account of refrigerant and petrol consumption, while Scope 2 emissions are on account of electricity consumption. Air emissions are reported as negligible given IRFC's nature as an NBFC not involved in any manufacturing activity. During FY 2025-26, IRFC procured 12 Hybrid Cars during January/February 2026 for official use as part of its green mobility initiative, aimed at reducing dependence on conventional fossil fuels and lowering greenhouse gas emissions.

Social and Governance Performance

The BRSR Core social and governance disclosures for FY 2025-26 are summarised below:

IRFC has adopted an Equal Opportunity Policy, a Human Rights Policy, a Whistle Blower Policy, and a Code of Business Conduct & Ethics, all approved by the Board of Directors. The company follows CVC procedures and norms regarding anti-corruption and anti-bribery, and no adverse orders were passed by regulatory authorities during the reporting period.

Inclusive Development and Openness of Business

On inclusive development, IRFC reported that 59.69% of inputs were sourced from MSMEs/small producers, with 100% of procurement sourced from within India. All procurements are conducted through the Government e-Marketplace (GeM) portal. The company reported that 100% of wages were paid to employees located in metropolitan areas, with 0% in rural, semi-urban, or urban locations, consistent with IRFC operating from a single location in New Delhi.

The independent reasonable assurance statement was issued by JointValues ESG Services Pvt. Ltd. on June 27, 2026, covering the nine core attributes of the BRSR Core for the reporting period April 1, 2025 to March 31, 2026 on a standalone basis.