IRFC Ends 2-Day Slump with 6% Rally on May 12; Check What’s Fuelling the Recovery

On May 12, 2025, Indian Railway Finance Corporation Ltd (IRFC) shares traded 6.05% higher at ₹123.55, effectively snapping a two-day losing streak. The stock opened at ₹122.65 and touched an intraday high of ₹123.70. The share price had slumped more than 3% in the last 2 sessions. 

The shares positive movement today could also be attributed to broad market gains amid easing geopolitical tensions between India and Pakistan that aided market wide recovery.

Mixed Q4 FY25 Performance 

Indian Railway Finance Corporation (IRFC) reported a 2.1% year-on-year (YoY) decline in net profit to ₹1,682 crore for the fourth quarter of FY25, down from ₹1,717.32 crore in the same period last year. However, revenue from operations rose by 3.8% YoY to ₹6,722.83 crore, indicating stable income generation. 

The company also saw a rise in provisions to ₹3.38 crore, compared to ₹0.46 crore in the previous quarter, and expenses grew nearly 6% YoY to ₹4,760.67 crore, reflecting increased operational costs. 

Fundraising Plans and Strategic Outlook 

IRFC’s Board has approved a significant fundraising plan of up to ₹60,000 crore for FY26, aimed at supporting the Indian Railways' capital needs.  

This capital will be mobilised through a diverse mix of financial instruments across domestic and international markets, including bonds, bank loans, and ECBs.  

The company, recently granted Navratna status, remains a key financial pillar for Indian Railways, with this fresh capital infusion expected to fund growth, refinance existing obligations, and support strategic initiatives. 

Read More: Best Railway Stocks in India for May 2025: Jupiter Wagons, Titagarh Rail and More Based on 5-Year CAGR.  

Conclusion  

Despite a mixed performance in Q4 FY25, Indian Railway Finance Corporation (IRFC) demonstrated resilience with a strong 6% rally in its share price on May 12, 2025, signalling investor confidence in the stock’s potential. While its profit faced a slight decline, the company's robust revenue growth and strategic fundraising plans indicate its steady role as a key financial partner for Indian Railways. 

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