I R F C Q2 FY27 Results (NSE: IRFC)
Signal: Earnings grew
The read
The trajectory is lease-income-led rather than interest-income-led: Q2 total income increased 24.4% YoY to ₹7,924.46 Cr as lease income more than doubled to ₹7,148.53 Cr, but finance costs rose 30.2% YoY to ₹5,917.08 Cr, limiting PAT growth to 10.2% at ₹1,958.48 Cr. Sequentially, PAT still increased 1.6% from ₹1,927.21 Cr, while total income declined 5.6% from ₹8,391.34 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹7,924.46 Cr | +24.4% | -5.6% |
| Net profit | ₹1,958.48 Cr | +10.2% | |
| EPS | ₹1.5 | +10.3% | |
| EBIT margin | 0% |
P&L walk
Standalone total income rose 24.4% YoY to ₹7,924.46 Cr, led by lease income of ₹7,148.53 Cr, while finance costs rose 30.2% YoY to ₹5,917.08 Cr; PAT still increased 10.2% YoY to ₹1,958.48 Cr and 1.6% QoQ.
Key positives
- Lease income increased 101.2% YoY to ₹7,148.53 Cr and supported total-income growth of 24.4% to ₹7,924.46 Cr despite a 74.6% decline in interest income.
- PAT increased 10.2% YoY to ₹1,958.48 Cr and 1.6% QoQ from ₹1,927.21 Cr, while EPS tracked PAT at ₹1.50 versus ₹1.36 YoY.
- H1 operating cash flow was ₹37,212.48 Cr versus ₹17,287.30 Cr in H1FY26, and cash and cash equivalents rose to ₹29,946.38 Cr.
- The company maintained 1x asset cover for secured non-convertible debt securities and other secured borrowings as of 30 September 2026.
Key concerns
- Finance costs rose 30.2% YoY to ₹5,917.08 Cr, faster than total income growth of 24.4%, constraining PAT growth to 10.2%.
- Interest income fell 74.6% YoY to ₹717.88 Cr, leaving reported income increasingly dependent on lease income of ₹7,148.53 Cr.
- Total expenses increased 29.8% YoY to ₹5,965.98 Cr, above the 24.4% growth in total income.
Research and educational content only. Not investment advice.