The shares of a Large-Cap company, specializing in the financing of rolling stock (locomotives, coaches, wagons) and railway infrastructure through leasing and lending activities, are in focus upon signing the term loan agreement to finance the thermal power and expansion projects.
With a market capitalization of Rs. 1,61,526.73 crores on Tuesday, the shares of Indian Railway Finance Corporation Ltd jumped upto 1.4 percent, making a high of Rs. 126.05 per share compared to its previous closing price of Rs. 124.25 per share.
What Happened
Indian Railway Finance Corporation Ltd, engaged in the financing of rolling stock (locomotives, coaches, wagons) and railway infrastructure through leasing and lending activities, has signed a Rs. 5,929 crore term loan agreement with Haryana Power Generation Corporation Limited (HPGCL).
The agreement is to finance the upcoming 800 MW (3rd unit) supercritical thermal power project at the Deenbandhu Chhotu Ram Thermal Power Plant in Yamunanagar. This project is key to enhancing Haryana’s power supply for households, industries, and agriculture. HPGCL, a state-owned utility, will boost its generation capacity using modern, efficient technology.
The partnership also strengthens the linkage between power generation and Indian Railways, as the thermal plant relies on coal transported by rail, while the generated power supports railway operations via the Northern Grid. IRFC, a Navratna company under the Ministry of Railways, continues to expand its role in financing infrastructure projects with strong rail connectivity.
Along with it, they have also signed a Rs. 10,560 crore loan agreement with Maharashtra State Power Generation Company Limited (MAHAGENCO) to fund the 2×660 MW supercritical expansion project at Koradi Thermal Power Station in Nagpur.
This expansion will add 1,320 MW of efficient capacity, replacing outdated units, and ensure a reliable power supply for Maharashtra’s industrial and agricultural sectors. The project also strengthens the forward and backward linkages with Indian Railways, as MAHAGENCO relies on coal transported by rail under long-term agreements, boosting railway freight revenues.
Financial & Others
The company’s revenue rose by 2.21 percent from Rs. 6,766 crore to Rs. 6,915 crore in Q1FY25-26. Meanwhile, Net profit rose from Rs. 1,577 crores to Rs. 1,746 crores during the same period.
Indian Railway Finance Corporation (IRFC) was established on December 12, 1986, as the dedicated financing arm of Indian Railways for mobilizing funds from domestic and overseas markets. IRFC is a Schedule ‘A’ Public Sector Enterprise under the Ministry of Railways and functions as a systemically important non-banking financial company (NBFC) and an infrastructure finance company registered with the RBI.
It serves as the dedicated market borrowing arm for Indian Railways, focusing on financing rolling stock, leasing railway infrastructure and national projects, and lending to entities under the Ministry of Railways.
As of Q1 FY 2025-26, IRFC’s Assets Under Management (AUM) show a strong credit profile, with 98.46 percent exposure to the Ministry of Railways (MoR), indicating minimal credit risk.
The AUM primarily comprises 37.71 percent advances against railway infrastructure assets to be leased, 31.60 percent lease receivables from rolling stock assets, 29.15 percent lease receivables from project assets, and 1.5 percent loans to RVNL and NTPC REL.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
