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Informist, Tuesday, Jan. 20, 2026

--CONTEXT: Comments by IRFC's management at analyst call after Q3 earnings

--IRFC: See AUM over INR 5 tln, cannot specify timeline yet

By Nandini Sinha

MUMBAI - Indian Railway Finance Corp. Ltd. expects its assets under management to grow over INR 5 trillion soon, the company's management said Tuesday without specifying a timeline. The non-banking finance company's AUM were at INR 4.75 trillion as of Dec. 31.

The public-sector financier is strictly focusing on the business-to-business segment and looking for clients having the potential to raise INR 100 billion–INR 150 billion, the management said in a call with analysts after IRFC's December quarter earnings. IRFC reported an all-time high quarterly net profit of INR 18.02 billion for Oct-Dec, up 10% on year.

Talking about future disbursements, the management said they would like to maintain a 60:40 mix in terms of loan to Indian Railways and related companies in the rail ecosystem. IRFC last year started funding related companies in the railway ecosystem, with the latest being a term loan of INR 98.21 billion to the Eastern Dedicated Freight Corridor in December.

The company has set forth a five-year plan under which it hopes to pick 15–20 new entities, with an aim to fund each of them around INR 150 billion. As per this plan, IRFC can add at least INR 3 trillion to its AUM in the next five years, taking the total AUM close to INR 8 trillion, the management said. 

At the same time, the infrastructure financier also aims to maintain its asset quality. "Our appraisal team is very, very particular about the fact that what kind of assets we are cherry-picking," the management said, adding that, so far, they have picked only A-rated companies to extend loans. "We believe that those government entities which are having very strong balance sheets, strong cash flows, and the kind of new ventures that they are going in, there is absolutely negligible chance of NPA." IRFC maintained its zero non-performing asset record in the December quarter.

After the December quarter results, shares of IRFC rose but closed 1.1% lower Monday at INR 120.90 apiece on the National Stock Exchange. At 1406 IST, shares of the company were trading 4% lower, at INR 116.22 on the National Stock Exchange.  End

Edited by Vandana Hingorani

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