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Mint
an hour ago
- Business
- Mint
RVNL vs IRFC vs RailTel: Which railway PSU stock to buy after Q1 results 2025?
RVNL vs IRFC vs RailTel: Q1 results for the 2025 season are almost over, and Indian stock market investors are busy finding their value picks. Some investors might be tempted to buy PSU stocks after the announcement of GST reforms and the S&P rating upgrade on India. According to stock market experts, one should look at railway PSU stocks as the Government of India (GoI) is highly ambitious about railway infrastructure expansion. However, they advised looking at only those railway PSU stocks that look strong from a fundamental perspective. They also suggested looking at Rail Vikas Nigam Limited (RVNL), Indian Railway Finance Corp (IRFC), and Railtel Corporation of India. Comparing the Q1 results 2025 of the three railway PSUs, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, "In Q1 FY26, the railway PSU space showcased a sharp divergence in performance, offering investors a clear view of varied risk-reward profiles. IRFC stood out as the most stable performer, delivering its highest-ever quarterly profit of ₹ 1,746 crore, an 11% YoY increase, supported by impeccable fundamentals—zero NPAs, a solid book value of ₹ 41.65 per share, and a healthy debt-to-equity ratio of 7.44. IRFC's predictable, low-risk lending model to Indian Railways continues to provide earnings stability, making it a compelling pick for investors prioritising steady returns over high-risk growth." On RailTel Corporation Q1 results 2025, the SMC Global Securities expert said, "RailTel delivered an equally impressive top-line performance, with Revenue surging 33% to ₹ 744 crore and PAT climbing 36% YoY to ₹ 66 crore, underscoring its role as a growth driver in railway digital infrastructure. However, operating margins contracted from 18.6% to 15.6%, raising short-term concerns. While this margin pressure signals execution challenges, RailTel's strategic alignment with India's expanding digitisation and connectivity agenda keeps its long-term growth potential intact for investors with higher risk appetite." Seema Srivastava, a certified Chartered Accountant (CA), also said that RVNL faced a challenging quarter during Q1FY26, with PAT plunging ~40% year-on-year (YoY) and Revenue from operations declining 4.05% year-on-year (YoY) to ₹ 3,908.77 crore. Asked about the railway PSU stock, which looks strong from the fundamental perspective, Seema Srivastava of SMC Global Securities, said, "Given its current earnings trajectory, RVNL appears a wait-and-watch candidate until operational performance stabilises. For long-term allocation, IRFC offers stability, RailTel caters to growth seekers, and RVNL requires cautious monitoring." On what technical chart suggestes about these three railway PSU stocks, Shiju Kuthupalakkal, Senior Manager of Technical Research at Prabhudas Lilladher, said, "The entire railway pack have been subdued for quite some time with most of the stocks witnessing significant erosion from their peak zones and has been trading with a weak bias for quite some time as of now. So, in comparison among the railway stocks RVNL, IRFC and RAILTEL, I feel RVNL is better placed technically with the stock almost arriving near the previous major low of ₹ 310, which is the crucial support zone and needs to be sustained to maintain the overall trend intact." The Prabhudas Lilladher expert said that the RSI has reached the highly oversold zone, currently hovering near the 25 zone, and the chances of a revival cannot be ruled out in the coming days. The overall bias would improve only if there is a decisive move past the ₹ 355 zone, and one can expect a further rise thereafter. "The view shall be negated if there is a decisive break below the ₹ 310 zone, which shall trigger a fresh downward slide, weakening the trend, with the next major support positioned near the ₹ 255 to ₹ 260 zone," Shiju Kuthupalakkal of Prabhudas Lilladher said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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Business Standard
23-07-2025
- Business
- Business Standard
IRFC shares rally 5% on posting strongest-ever quarterly performance in Q1
IRFC shares rose in today's trade after the company posted its strongest-ever quarterly performance for the June quarter of FY26, backed by robust earnings growth and operational improvements. SI Reporter New Delhi IRFC share price: State-owned Indian Railway Finance Corporation (lRFC) shares were buzzing in trade on Wednesday, July 23, 2025, with the scrip rising up to 4.66 per cent to an intraday high of ₹136.90 per share. Around 1:30 PM, IRFC share price was trading 2.87 per cent higher at ₹134.55 per share. By comparison, BSE Sensex was trading 0.45 per cent higher at 82,553.46 levels. Why did IRFC share price rise in trade today? IRFC shares rose in today's trade after the company posted its strongest-ever quarterly performance for the June quarter of FY26 (Q1FY26), backed by robust earnings growth and operational improvements. IRFC, on Tuesday, reported double-digit growth in profit and a steady rise in revenue compared to the year-ago period. The company's total income rose to ₹6,918.24 crore in Q1FY26, up from ₹6,766.03 crore in Q1FY25 – marking the highest-ever quarterly revenue in its history. Profit After Tax (PAT) for the quarter grew 10.71 per cent year-on-year (Y-o-Y) to ₹1,745.69 crore, compared to ₹1,576.83 crore in the same period last year. This also represents IRFC's highest-ever quarterly PAT. Net interest margin (annualised) improved to 1.53 per cent, the best in the past three years, driven by better lending spreads and tighter cost management. IRFC's net worth now stands at ₹54,423.96 crore, a record high, with a book value of ₹41.65 per share. Additionally, the company's debt-to-equity ratio improved further to 7.44, highlighting a healthier balance sheet. It also retained the lowest overhead cost in the industry, reinforcing its reputation for operational efficiency. Notably, lRFC reported a continued streak of zero non-performing assets (NFIA), maintaining a clean loan book. Manoj Kumar Dubey, chairman and managing director of lRFC, said, "Our performance this quarter reflects the robustness of IRFC's financial strategy and its critical role in advancing the infrastructure goals of Indian Railways. As the sector undergoes unprecedented transformation, we are committed to driving financial innovation and maintaining operational excellence." "We continue to secure the very attractive cost of capital within the ecosystem of NBFC and true to our ethos we are sharing this benefit directly with our customers. The competitive edge with very low overhead cost coupled with Zero NPA and stable cash flows sets us apart in the industry, not just in pricing but in creating true partnership," Dubey added. This also marks the first full quarter since IRFC was accorded 'Navratna' status by the Government of India, which has given the company greater operational and investment autonomy. The status upgrade, along with record results, signals a strong strategic shift as IRFC expands its role beyond financing Indian Railways to a wider ecosystem of railway-linked infrastructure projects. 'In lRFC 2.0, the company is well on the growth path with proliferation of assets in the whole railway ecosystem with backward and forward linkage to railway centric projects,' IRFC said in a statement. Catch Stock Market LIVE Updates About IRFC IRFC, established in December 1986, is the dedicated funding arm of Indian Railways. Its primary objective is to mobilise funds from domestic and international markets to support the Extra Budgetary Resources required for the expansion and operation of Indian Railways. By borrowing from financial markets, IRFC acquires assets that are then leased to Indian Railways, ensuring a steady flow of resources for infrastructure development. Governed by the Ministry of Railways, IRFC is predominantly owned by the Government of India. It raises capital through a variety of sources, including term loans and bonds, enabling it to fulfil the financial needs of one of the largest railway networks in the world.
Business Standard
23-07-2025
- Business
- Business Standard
IRFC gains after Q1 PAT rises 11% YoY to Rs 1,746 cr
Indian Railway Finance Corporation (IRFC) rallied 3.21% to Rs 135 after the company's net profit rose by 10.70% to Rs 1,745.69 crore in Q1 FY26 as against Rs 1,576.83 crore posted in Q1 FY25. Total revenue from operations increased by 2.21% year-on-year (YoY) to Rs 6,915.38 crore in the quarter ended 30 June 2025. Profit before tax stood at Rs 1,745.69 crore in Q1 FY26, up 10.70% from Rs 1,576.83 crore recorded in the same period a year ago. On the margins front, the companys net interest margin improved to 1.53% (annualized), the best in the last three years, reflecting stronger lending spreads and tighter cost management. The firm also reported a book value of Rs 41.65 per share. IRFCs net worth now stands at Rs 54,423.96 crore, marking the highest level since its inception. Manoj Kumar Dubey, chairman and managing director of lRFC, said, "Our performance this quarter reflects the robustness of IRFC's financial strategy and its critical role in advancing the infrastructure goals of Indian Railways. As the sector undergoes unprecedented transformation, we are committed to driving financial innovation and maintaining operational excellence." Dubey further added, "We continue to secure the very attractive cost of capital within the ecosystem of NBFC and true to our ethos we are sharing this benefit directly with our customers. The competitive edge with very low overhead cost coupled with zero NPA and stable cash flows sets us apart in the industry, not just in pricing but in creating true partnership." Indian Railway Finance Corp.'s principal business is to borrow funds from the financial markets to finance. The Government of India held an 86.36% stake in the company as of 30 June 2025.
Mint
23-07-2025
- Business
- Mint
IRFC share price share price jumps 4% after railway PSU reports Q1 results
IRFC share price jumped nearly 4% in early trade on Wednesday after the PSU railway company reported its Q1 results. IRFC share price rallied as much as 3.89% to ₹ 135.90 apiece on the BSE. The state-owned Indian Railway Finance Corporation (IRFC) a net profit of ₹ 1,745.69 crore in the first quarter of FY26, registering a growth of 10.7% from ₹ 1,576.83 crore in the same quarter previous year. The railway PSU's revenue from core operations in Q1FY26 increased 2.2% to ₹ 6,915 crore from ₹ 6,765 crore, year-on-year (YoY). At 9:25 AM, IRFC share price was trading 3.67% higher at ₹ 135.60 apiece on the BSE.
Economic Times
23-07-2025
- Business
- Economic Times
IRFC shares in focus after Q1 profit rises 11% YoY to record Rs 1,746 crore
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Indian Railway Finance Corporation IRFC ) will be in focus on Wednesday after the company reported its highest-ever quarterly net profit and total income in Q1FY26. The state-run lender posted a profit after tax (PAT) of Rs 1,746 crore, up 11% from Rs 1,577 crore in the same quarter last from operations rose 2% year-on-year to Rs 6,915 crore, compared with Rs 6,766 crore in Q1FY25. On a sequential basis, PAT rose 3.8% from Rs 1,682 crore in Q4FY25, while revenue grew 2.8% over Rs 6,723 crore reported in the previous Read: Paytm stock rallies 122% in one year but still 53% below issue price. Can it reclaim its IPO glory? Total income for the June quarter stood at Rs 6,918 crore, including other income of Rs 2.86 crore—also the highest quarterly income recorded in IRFC's interest margin improved to 1.53% on an annualised basis, marking the best level in the past three years. IRFC's net worth rose to Rs 54,424 crore, also a record high, while its book value per share reached Rs Read: 7 Nifty500 stocks with highest dividend yields. Do you own any? The company reported a further improvement in its debt-to-equity ratio to 7.44, reflecting a stronger balance sheet. It also maintained one of the lowest overhead costs in the industry and continued its streak of zero non-performing assets (NPAs).IRFC Chairman and Managing Director Manoj Kumar Dubey said the results reflect the robustness of the firm's financial strategy and its central role in financing Indian Railways' infrastructure Read: Apollo Tyres, Brigade Enterprises among 10 small-cap stocks trading below industry PE; may rally up to 43% 'As the sector undergoes unprecedented transformation, we are committed to driving financial innovation and maintaining operational excellence,' Dubey said. 'Our zero NPA record, low cost of capital, and stable cash flows continue to set us apart in the NBFC space.'(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
