IRFC Plans to Raise Up to ₹28,000 Crore Via ECBs in FY27: CMD Manoj Kumar Dubey

Indian Railway Finance Corporation (IRFC) is preparing a large overseas borrowing programme for FY27, with plans to raise nearly ₹24,000-28,000 crore through external commercial borrowings (ECBs) as the company broadens its infrastructure financing activities beyond traditional railway projects, as per The Mint report. 

IRFC Targets Large Overseas Borrowings 

The proposed overseas fundraising forms part of IRFC’s approved ₹70,000 crore borrowing programme for FY27. The company expects nearly 35-40% of total annual borrowings to come through the ECB route. 

Manoj Kumar Dubey, Chairman and Managing Director of IRFC, said the company is exploring “lucrative foreign markets” for fundraising during the current financial year. 

IRFC is expected to rely heavily on yen-denominated borrowings while also evaluating multiple financing options depending on market conditions and project requirements. 

Alongside ECBs, the company plans to raise nearly ₹20,000 crore through deep discount zero coupon bonds in multiple tranches during FY27. 

The company is also assessing several funding instruments including global medium-term notes, foreign currency bonds, masala bonds, green bonds, ESG bonds, multilateral loans, debentures and other structured financing products. 

Diversification Beyond Railway Projects Accelerates 

IRFC is increasingly expanding its financing exposure beyond railway infrastructure into sectors such as metro rail, renewable energy, power generation, power transmission, warehousing and urban mobility. 

The company has already funded organisations including Rail Vikas Nigam Ltd, RailTel Corporation of India, Konkan Railway Corporation Ltd, Rail Land Development Authority and Pipavav Railway Corporation Ltd. 

Dubey highlighted IRFC’s “zero bad-loan portfolio” and low operational costs as key advantages supporting its lending business. The company’s average lending rate currently stands at 7.9%. 

He added that IRFC plans to focus primarily on large government-backed projects to maintain strong asset quality and preserve its zero-NPA status. 

FY26 Financial Performance Remains Strong 

IRFC reported 7.8% growth in net profit to ₹7,009.1 crore during FY26, while revenue from operations stood at ₹27,284 crore. 

The company’s assets under management increased to ₹4.85 lakh crore and net worth rose to ₹56,748.76 crore. 

During FY26, IRFC sanctioned projects worth ₹72,949 crore and disbursed ₹35,067 crore, surpassing its internal targets. The company also secured financing opportunities worth nearly ₹56,251 crore through competitive and bilateral arrangements. 

Dubey said IRFC aims to “maintain sanction and disbursement” levels achieved in FY26 while targeting around 15 large projects requiring funding of ₹15,000 crore or more over the next 3 years. 

The company is targeting cumulative sanctions of ₹3 lakh crore within four years of diversifying outside Indian Railways beginning FY26. 

Read More: IRCTC, IRFC and Other Railway PSUs Stocks in Focus as Railways Plans Stake Sales Under ₹2.62 Trillion Monetisation Drive! 

IRFC Share Price Performance  

As of 18 May 2026, at 10:15 AM, Indian Railway Finance Corporation share price is trading at ₹95.71 per share, reflecting a decline of 3.19% from the previous closing price.  

Conclusion 

IRFC’s large overseas borrowing plans and diversification strategy reflect the company’s growing ambition to become a major infrastructure financing institution across multiple sectors beyond railways. 

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