01 — At a Glance
The Auditor’s Favourite Client Just Posted Another Loss
- 52-Week High / Low₹74.5 / ₹35.7
- Q3 FY26 Revenue₹456 Cr
- Q3 FY26 PAT₹-12 Cr
- TTM EPS₹1.47
- Annualised EPS (Q1-Q3 Avg × 4)₹0.83
- Book Value / Share₹32.9
- Price to Book1.63x
- Gross NPA (Dec 2025)96.31%
- Net NPA (Jun 2025)79.78%
- Loan Book (Mar 2025)₹3,848 Cr
Auditor’s Flash Summary: IFCI posted Q3 FY26 revenue of ₹456 crore (down 0.68% YoY) and a ₹12 crore loss. Gross NPA still at 96.31%. CRAR negative at -16.51%. Yet the government (via GAIL) just infused ₹500 crore equity. Stock at ₹53.8, P/E 36.3x on TTM EPS ₹1.47, ROE 2.60%. No dividends since forever. Classic PSU finance: losses on books, cheques from Delhi.
02 — Introduction
The DFI That Time (and Markets) Forgot
Picture this: 1948. India is fresh out of colonial rule, dreaming of steel plants and dams. Enter IFCI — the very first development financial institution, set up to lend long-term money to industry. Fast-forward 77 years and the loan book has shrunk to ₹3,848 crore, gross NPA is 96%, CRAR is deeply negative, and the only growth is in government equity infusions. Yet the stock trades at 36x TTM earnings and 1.63x book. Welcome to the auditor’s favourite client.
Q3 FY26 was textbook IFCI: another quarterly loss, sky-high NPAs, zero fresh lending, and a fresh ₹500 crore from GAIL. The business has pivoted from project finance to “advisory services + recoveries + dividend income”. Translation: we stopped lending because we have no capital, and now we recover old bad loans and advise others on how not to repeat our mistakes.
The government owns 72.57%. It has pumped ₹500 crore every year for the last three years. Brickwork Ratings reaffirms B+/Negative with a laundry list of caveats. The stock is up 30% in one year on hopes of merger and more infusions. If this doesn’t scream “funny auditor territory”, nothing does.
Brickwork Ratings (Nov 2025): B+/Negative reaffirmed. Negative CRAR, 96% GNPA, stretched liquidity dependent on GoI support. Outlook: monitorable. In auditor speak — “we are watching, but please keep sending cheques”.
03 — Business Model: WTF Do They Even Do?
They Used to Finance India. Now They Recover, Advise & Wait for Cheques.
IFCI was set up in 1948 to provide long-term finance to industry. Today? No new disbursements since FY22. Loan book down from ₹5,097 crore (Mar 2024) to ₹3,848 crore (Mar 2025). 96% of what remains is NPA. The “business” is now: (1) recover whatever possible from old NPAs (₹800 crore recovered in FY25), (2) earn advisory fees (31 assignments in FY23, still the mainstay), (3) manage government schemes like Sugar Development Fund and PLI, and (4) wait for the next equity infusion from GoI/GAIL.
Products that still exist on paper: project finance, corporate finance, syndication, structured debt. In practice: zero. Revenue breakup (9M FY24, latest available): interest 18%, dividend 23%, fee & commission 27%, sale of services 23%. Translation: they are running a consultancy + recovery agency funded by taxpayers.
Government ownership 72.57% gives them sovereign backing for ratings and borrowing, but also policy risk — “lend to priority sectors even if they are doomed”. The Maharatna dream never happened. Instead, we have a shrinking balance sheet and negative CRAR. Classic.
Loan Book₹3,848 Crshrinking
GNPA96.31%Dec 2025
Advisory Focus31 assignments FY23still mainstay
GoI Infusions₹500 Cr p.a.last 3 years
Fun fact: IFCI financed Adani Mundra Port and GMR Goa Airport back in the day. Today those assets are thriving while IFCI’s balance sheet looks like it went through NCLT itself. Irony level: expert.
04 — Financials Overview
Q3 FY26: The Numbers That Make Auditors Sweat
Result type: Quarterly Results | Q3 FY26 EPS: ₹-0.06 | Q1 EPS ₹0.15, Q2 ₹0.53, Q3 ₹-0.06 | Avg Q1–Q3 EPS: ₹0.207 | Annualised EPS: ₹0.83
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 456 | 459 | 414 | -0.68% | +10.1% |
| Financing Profit | 27 | 98 | 85 | -72.4% | -68.2% |
| PAT | -12 | -31 | 23 | +61.3% | -152% |
| EPS (₹) | -0.06 | -0.12 | 0.53 | +50% | -111% |
P/E Check: TTM EPS ₹1.47. CMP ₹53.8. P/E 36.6x. Industry median ~18x. A company with 96% NPA and negative CRAR trading at 36x earnings on recovery income and GoI cheques. The market is pricing in… something. Probably more infusions.
💬 At 36x P/E with 96% GNPA and negative CRAR, what exactly is the market pricing in — merger magic or the next ₹500 Cr cheque? Auditor wants to know in comments.
05 — Valuation: Fair Value Range
What Is This Recovery Agency Actually Worth?
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