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IRFC shares keep sliding after record quarter as margins and book shrink
Interest income fell 23.4% year-on-year in Q1FY27, while the net interest margin slipped to 1.48%, and the stock trades near its 52-week low despite zero non-performing assets.
IRFC’s stock has continued to fall even after the company posted what LiveMint Markets described as its strongest quarter ever, with record total income, net worth, and net profit and zero non-performing assets. Despite that headline performance, investors have focused on weakening underlying drivers, including a shrinking lending book, tighter margins, and ongoing government stake sales.
As of June 30, 2026, IRFC’s assets under management stood at ₹4.79 trillion, down from ₹4.85 trillion at the end of March. LiveMint Markets said interest income dropped 23.4% year-on-year to ₹1,148 crore in Q1FY27, while lease income rose 31.3% to ₹7,094 crore, helping lift total income to ₹8,391 crore.
The company’s net interest margin came in at 1.48% annualized for Q1FY27, down from 1.53% in the year-earlier quarter, reflecting pressure on returns for a business model tied to borrowing and lending to Indian Railways at a regulated spread. Management has set a target to exceed 1.6% NIM by the end of FY27 and 2% by 2030, and it has declared FY27 a year of consolidation.
LiveMint Markets added that the shares have been trading below key moving averages for months and have struggled near the lows, with the stock touching a 52-week low of ₹86.02 before closing at ₹88.80 on August 7, 2026, about 35% below its 52-week high. The outlet pointed to a valuation premium that has yet to fully unwind as another factor keeping the stock under pressure.