Adobe Stock
Indian Railway Finance Corporation (IRFC) shares rose nearly 3.6 per cent to Rs 145.8 on June 4, 2025, despite a 2.1 per cent year-on-year (YoY) decline in Q4 net profit to Rs 1,682 crore. The stock has gained 27.7 per cent over the past three months, though it remains down 11.3 per cent over the past year.
Q4 FY25 performance snapshot
| Metric | Q4 FY25 | Q4 FY24 | YoY change |
|---|---|---|---|
| Revenue from operations | Rs 6,723 crore | Rs 6,476 crore | 3.8 per cent |
| Net profit | Rs 1,682 crore | Rs 1,717 crore | - 2.1 per cent |
| Operating margin | 99.3 per cent | 99.5 per cent | - 20 bps |
| Provisions | Rs 3.38 crore | Rs 0.30 crore | 1,026 per cent |
| EPS | Rs 1.29 | Rs 1.31 | - 1.5 per cent |
About IRFC
Established in 1986, IRFC is the dedicated financing arm of Indian Railways, responsible for raising funds through capital markets and other borrowings. The Government of India owns an 86.4 per cent stake in the company. In March 2025, IRFC was granted Navratna status, enhancing its operational autonomy.
Here’s how it fundamentals look.
| Metric | Value |
|---|---|
| Market cap | Rs 1.89 lakh crore |
| ROE | 13.7 per cent |
| ROCE | 5.7 per cent |
| P/E ratio | 29.1 |
| P/B ratio | 3.6 |
| Dividend yield | 1.1 per cent |
| Book value | Rs 40.3 |
| EPS | Rs 5 |
Value Research Online ratings
Value Research rates IRFC a one star.
Here’s how it scores on other parameters.
- Quality: 5/10
- Growth: 3/10
- Valuation: 3/10
- Momentum: 3/10
Final word
IRFC's recent share price recovery, despite a dip in quarterly profits, reflects investor optimism following its Navratna status and substantial fund-raising plans. However, the company's high leverage and modest growth prospects warrant cautious evaluation.
Serious about wealth? So are we.
Join thousands of smart investors who rely on Value Research Stock Advisor for expert-picked stocks, time-tested strategies and long-term discipline.
Stop guessing. Start growing. Check it out now: Value Research Stock Advisor.
Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
