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Informist, Wednesday, Jul. 23, 2025

 

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--IRFC: Have sanctioned INR 250 bln of loans, more in pipeline 
--CONTEXT: Comments by IRFC's management at post-earnings analyst concall 
--IRFC: Disbursed INR 30 bln in Apr-Jun 
--IRFC MD: May see AUM top INR 5 tln by end-FY27 
--IRFC: Expect no tax liability in next 4-5 years 
--IRFC: Aim to disburse INR 300 bln worth of loans in FY26 
--IRFC: Aim to sanction INR 600 bln worth of loans in FY26

 

By Shubham Rana and Sagar Sen

 

NEW DELHI - Indian Railway Finance Corp. Ltd.'s assets under management can rise above INR 5 trillion sometime in 2026-27 (Apr-Mar), Chairman and Managing Director Manoj Kumar Dubey said. IRFC's assets under management were INR 4.60 trillion as of end-June.

 

"Going forward, every quarter we will be seeing a decent improvement in assets under management," Dubey said at a post-earnings conference call with analysts on Wednesday. "Maybe next FY (financial year) we see it growing past 5 lakh crores (INR 5 trillion) again, which used to be our AUM 2 years back."

 

IRFC Tuesday reported a 10.7% on-year rise in its net profit for Apr-Jun to INR 17.46 billion, mainly on the back of robust lease income. At 1306 IST, shares of the company were up 3.2% at INR 134.90 on the National Stock Exchange.

 

The company has sanctioned INR 250 billion worth of loans so far in FY26, and a "few more big tickets are in pipeline", Dubey, who is also the chief executive officer of the company, said. IRFC disbursed loans worth INR 30 billion in the June quarter against the full-year target of INR 300 billion. IRFC aims to sanction loans worth INR 600 billion this year, Dubey said.

 

By Jul-Sept, the company expects to meet 50% of the full-year target for disbursements. "Maybe we can exceed it also," Dubey said. "We are on track of what we have given the guidance in terms of disbursement as well as in terms of the sanction of the loans."

 

Dubey said IRFC's net interest margin is likely to improve in the quarters ahead as the company expects margins of over 2% for the new assets under management. IRFC's net interest margin rose to 1.53% in Apr-Jun from 1.37% a year ago.

 

IRFC doesn't expect any tax liability for at least the next five years, the management said during the conference call, because of the leasing business model it follows. "We have an unabsorbed depreciation for the assets that we lease to the (Indian) Railways," a company official said.

 

"From 2018-19 onwards, we have opted for 115BAA and because of that adoption, we are not liable to pay any tax under MAT (minimum alternate tax) and we have a lot of unabsorbed depreciation that for the foreseeable future will be sufficient to absorb whatever impact on that income we have," the official said. Under Section 115BAA of the Income Tax Act, companies opting for the lower tax rate of 22% are exempt from paying minimum alternate tax.  End

 

Edited by Tanima Banerjee

 

 

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