1. Opening Hook
IRFC spent 38 years funding just Indian Railways, like a government employee who never switched departments.
Then FY26 happened—and suddenly IRFC discovered diversification, ECBs, zero-coupon bonds, and competitive bidding.
Management promised ₹60,000 cr asset sanctions without a pipeline.
Everyone nodded politely.
Then Q3 arrived and IRFC casually said, “Guidance? Already crossed.”
Margins that were once a sleepy 40 bps are now flirting with 100–120 bps.
Zero NPAs remain intact, RBI still forced provisioning, and the CMD sounds unusually confident for a PSU boss.
This isn’t the old IRFC.
This is IRFC 2.0—same sovereign safety, new swagger.
Read on. It only gets more interesting once numbers start flexing.
2. At a Glance
- Asset sanctions crossed ₹60,000 cr – Guidance achieved before the year ended. PSU efficiency unlocked.
- Disbursements ~₹22,500 cr – Three-fourths of full-year target done, pipeline finally behaving.
- NIM at 1.51% – From 1.40% last year; boring NBFC just learned margin expansion.
- PAT growth ~10% YoY – Would’ve been ~13% if RBI hadn’t insisted on “just in case” provisioning.
- AUM at ₹4.75 lakh cr – One quarter jump of ~₹15,000 cr. Not small-ticket behaviour.
3. Management’s Key Commentary
“We entered diversification without a pipeline and still
crossed our guidance.”
(Translation: Even we’re surprised this worked 😏)
“Margins are now 2x–3x of what we earned from Indian Railways.”
(Translation: Monopoly was safe, competition is profitable)
“We raised ECB in yen at one of the best rates in the market.”
(Translation: Global investors trust us more than some Indian banks)
“We successfully issued zero-coupon bonds in 2025.”
(Translation: Financial engineering, PSU edition 🧠)
“We are cherry-picking only pristine, A-rated assets.”
(Translation: No YOLO lending, calm down)
“Our CRAR is ~160% versus requirement of ~25%.”
(Translation: Capital overdose, no risk hangover)
“We are inducing competition and happy losing some bids.”
(Translation: Discipline > market share)
4. Numbers Decoded
| Metric | Q3 FY26 | Decoded Meaning |
|---|---|---|
| AUM | ₹4.75 lakh cr | Balance sheet already heavyweight |
| NIM | 1.51% | Structural improvement, not a blip |
| Cost of Funds | <7% | 20–30 bps cheaper than peers |
| PAT | ~₹1,800 cr | Provisioning masked true growth |
| Margins (new assets) | 100–120 bps | Earlier life was at 40 bps |
