I R F C Q1 FY27 Results (NSE: IRFC)
Signal: Earnings grew
The read
IRFC delivered its best-ever quarterly total income and PAT, but finance cost growth outpaced revenue, limiting PAT expansion; zero NPA continued; auditor raised concerns on lease receivable recognition without executed agreements and board composition non-compliance.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8,391.34 Cr | 21.29% | 14.50% |
| Net profit | ₹1,927.21 Cr | 10.40% | |
| EPS | ₹1.47 | 9.70% | |
| EBIT margin | 0% |
P&L walk
Record total income and PAT, but finance cost growth outpaced revenue, narrowing net margin; zero NPA maintained; auditor flagged lease receivables recognition and board composition non-compliance.
Key positives
- Highest-ever quarterly total income of ₹8,391 Cr, up 21% YoY.
- Highest-ever quarterly PAT of ₹1,927 Cr, up 10% YoY.
- Net worth reached record ₹58,792 Cr.
- Maintained zero NPA track record for the quarter.
- NIM at 1.48% (annualised) remains stable.
Key concerns
- Finance costs grew 25% YoY, outpacing revenue growth of 21%, compressing net interest margin.
- Revenue growth of 21% driven mainly by lease income; PAT growth lagged at 10% due to higher finance costs.
- Lease receivables of ₹1.65 lakh crore recognized without executed lease agreements (auditor emphasis of matter).
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