IRFC Q2 net profit rises 10% to ₹1,958 crore as board declares record interim dividend

Indian Railway Finance Corporation (IRFC) posted a 10.2 per cent increase in standalone net profit to ₹1,958.48 crore for the quarter ended 30 September, supported by sustained expansion in domestic rail and logistics financing.

The public sector lender, which operates under the administrative control of the Ministry of Railways, had registered a net profit of ₹1,776.98 crore in the corresponding quarter of the previous financial year. Alongside the earnings growth, IRFC’s board of directors approved an interim dividend of ₹1.15 per equity share with a face value of ₹10, marking the company’s highest-ever distribution in a single payout tranche.

What the Q2 earnings figures show

Revenue from operations increased by 23.5 per cent year-on-year to ₹7,866.41 crore during the July–September period, compared with ₹6,371.89 crore in the second quarter of the preceding year. Total income stood at ₹7,924 crore, up from ₹6,372 crore a year ago, reflecting the quickened pace of asset creation and rolling stock procurement across the national network.

Total expenses rose to ₹5,966 crore from ₹4,595 crore. The lender closed the quarter with an annualised Net Interest Margin (NIM) of 1.50 per cent, while both basic and diluted earnings per share reached ₹1.50, up from ₹1.36 twelve months earlier.

Capital strength and dividend dates

The financing arm's balance sheet strengthened further over the period. Net worth expanded to a record ₹60,573.35 crore at the end of September 2026, up from ₹56,748.76 crore at the end of March 2026 and ₹56,194 crore in September 2025.

IRFC set Friday, 23 October 2026, as the record date to determine eligible shareholders for the ₹1.15 per share dividend. In its filing with stock exchanges, the firm said eligible shareholders holding shares in dematerialised and physical formats will receive the payout within 30 days of declaration.

Funding the next phase of national rail expansion

The company’s performance highlights the steady execution of India’s railway modernisation drive, where capital outlays for track expansion, station redevelopment, and fleet additions have provided stable lending opportunities. IRFC has kept its non-performing assets at zero.

“Under IRFC 2.0, our continued railway-centric diversification is reaping rich dividends," said Manoj Kumar Dubey, Chairman and Managing Director of IRFC. "The growing contribution of railway-linked businesses beyond Indian Railways is supporting better margins, strengthening PAT and improving NIM."

Dubey added that the company is preparing for heavy financing demand across newly sanctioned Dedicated Freight Corridors, High-Speed Rail Corridors, national port expansion links, and renewable energy installations that hold power purchase agreements with Indian Railways.

Recent lending agreements underline that widening brief, including a ₹4,200 crore loan pact signed with Damodar Valley Corporation to finance renewable energy infrastructure connected to rail traction needs. On Dalal Street, IRFC shares closed marginally lower at ₹78.90 on Thursday.