IRFC Eyes Metro and Rapid Rail to Boost High-Margin Growth
RAILWAYS & METRO RAIL

IRFC Eyes Metro and Rapid Rail to Boost High-Margin Growth

Indian Railway Finance Corporation (IRFC) is expanding beyond its traditional role as the key financier for Indian Railways, with plans to diversify into metro and rapid rail infrastructure projects. This strategic shift is expected to drive higher growth and profitability, said Chairman and Managing Director Manoj Kumar Dubey. The state-run firm has already secured Rs 140,000 million worth of loan assets through three consecutive bids in just three months, signaling its aggressive push into new sectors aligned with railway infrastructure.

Dubey highlighted that margins from these diversified projects are nearly two to three times higher than those earned from conventional railway financing. For FY26, IRFC is targeting disbursements of approximately Rs 30,000 million, which—due to improved margins—is expected to yield profitability equivalent to Rs 90,000 million worth of earlier disbursements. The diversification strategy comes after a two-year slowdown in disbursements, as Indian Railways relied on increased budgetary support and did not seek extra-budgetary funds.

The company aims to sanction up to Rs 60,000 million this year, with Rs 30,000 million expected to be disbursed across metro and rapid rail projects. IRFC’s interest in sectors with forward and backward linkages to railways is seen as a turning point after decades of single-client dependency. As per Dubey, these high-margin opportunities will help offset slower topline growth with a stronger bottom line, driven by a targeted net interest margin (NIM) of over 2 per cent—up from the earlier 0.35–0.40 per cent.

Despite posting a 4 per cent year-on-year increase in revenue for the January–March 2025 quarter at Rs 6,723 crore, IRFC’s stock has fallen by over 20 per cent in the past year. The company’s current market capitalization stands at Rs 1.67 trillion. However, with diversification already underway and higher-margin projects in the pipeline, IRFC expects steady growth in its profitability and a stronger presence in the evolving urban mobility landscape.

Indian Railway Finance Corporation (IRFC) is expanding beyond its traditional role as the key financier for Indian Railways, with plans to diversify into metro and rapid rail infrastructure projects. This strategic shift is expected to drive higher growth and profitability, said Chairman and Managing Director Manoj Kumar Dubey. The state-run firm has already secured Rs 140,000 million worth of loan assets through three consecutive bids in just three months, signaling its aggressive push into new sectors aligned with railway infrastructure.Dubey highlighted that margins from these diversified projects are nearly two to three times higher than those earned from conventional railway financing. For FY26, IRFC is targeting disbursements of approximately Rs 30,000 million, which—due to improved margins—is expected to yield profitability equivalent to Rs 90,000 million worth of earlier disbursements. The diversification strategy comes after a two-year slowdown in disbursements, as Indian Railways relied on increased budgetary support and did not seek extra-budgetary funds.The company aims to sanction up to Rs 60,000 million this year, with Rs 30,000 million expected to be disbursed across metro and rapid rail projects. IRFC’s interest in sectors with forward and backward linkages to railways is seen as a turning point after decades of single-client dependency. As per Dubey, these high-margin opportunities will help offset slower topline growth with a stronger bottom line, driven by a targeted net interest margin (NIM) of over 2 per cent—up from the earlier 0.35–0.40 per cent.Despite posting a 4 per cent year-on-year increase in revenue for the January–March 2025 quarter at Rs 6,723 crore, IRFC’s stock has fallen by over 20 per cent in the past year. The company’s current market capitalization stands at Rs 1.67 trillion. However, with diversification already underway and higher-margin projects in the pipeline, IRFC expects steady growth in its profitability and a stronger presence in the evolving urban mobility landscape.

Next Story
Real Estate

Swamiraj Rebrands as House of Swamiraj, Announces Rs 210 Cr Project

In a strategic shift marking its evolution from a reputed builder to a lifestyle-focused brand, Swamiraj Constructions has rebranded as House of Swamiraj. With a two-decade legacy and over 1,700 homes delivered across the Mumbai Metropolitan Region (MMR), the company is embracing a new phase centred on community-driven, wellness-oriented living. The rebranding was unveiled via a digital campaign titled #BeyondDimensions, executed in three phases—teaser, engagement, and launch. The campaign spotlighted the brand’s renewed commitment to designing homes that go beyond function to foster ..

Next Story
Resources

Morpho Dimensions Set to Cross Rs 1 billion Revenue in FY 25–26

Morpho Dimensions, a venture of acclaimed architecture and design firm Morphogenesis, is transforming India’s office interiors landscape with a technology-first, design-led approach. With a secured orderbook of Rs 700 million and additional projects in the pipeline, the firm is confidently on track to cross Rs 1 billion in revenue in FY 2025–26. By combining Artificial Intelligence (AI), Building Information Modelling (BIM), and Virtual Reality (VR), Morpho Dimensions enables clients to visualise and step into immersive, ready-to-operate workspaces within 90 days—ushering in a new bench..

Next Story
Real Estate

TOTO’s NEOREST Surpasses 4 Million Global Shipments

TOTO has announced that its flagship smart toilet, NEOREST, has surpassed 4 million global shipments as of March 2025, marking a major milestone in the evolution of luxury sanitation and setting a new global benchmark in design-led hygiene innovation. Launched in 1993 with the aim to redefine conventional toilets, NEOREST has consistently merged cutting-edge technology with minimalist design. Over three decades, it has become a category-defining product, earning global acclaim with prestigious honours including the iF Design Award, Red Dot, and Green Good Design Awards. The integrate..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?