The Indian Railway Finance Corporation Ltd (IRFC) share price halted its two-consecutive-day winning streak on July 25, falling by more than 2.3% on Friday. IRFC shares are trending since its Q1 results announcement earlier this week. IRFC is the largest railway stock, which has made a tremendous journey since 2023, with periodical corrections. But should you buy or sell this railway stock after Q1FY26?
IRFC Share Price:
At the time of writing, IRFC stock performed at Rs 132.85 apiece, down by 2.06% on BSE, with a market cap of Rs 1,73,615.10 crore. The stock is near its intraday low of Rs 132.45. IRFC is down by nearly 2.4% in the day.
With the latest performance, IRFC has halted its gaining spree from July 23-24, where the shares gained by more than 5.5%.
The latest selling pressure is due to profit-booking.
YTD, IRFC is down by nearly 11.6%. In a year, the stock dipped by nearly 28%. But since January 2021, IRFC has skyrocketed by over 435%.
IRFC Q1 Results:
During Q1FY26, IRFC reported its strongest-ever quarterly performance, registering record earnings across key financial indicators including revenue, profitability, and net worth.
In the quarter, IRFC reported total income of Rs.6918.24 crore vis-a-vis Rs. 6766.03 crore reported in corresponding period last year. This is highest ever total income reported for a quarter in the history of lRFC.
Also, PAT for the quarter ended 30th June 2025 grew by 10.71% and stands at Rs.1745.69 crore as against Rs.1576.83 crore reported in corresponding period of the previous year. This is also highest ever PAT for a quarter in the history of IRFC.
Furthermore, 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. IRFC's net worth now stands at Rs 54,423.96 crore, marking the highest level recorded since its inception.
Should You Buy Or Sell?
As per the consensus of 1 analyst, the recommendation is SELL on IRFC, as per Trendlyne data. However, EPS is expected to grow by 18.5% in FY26.
Vaishali Parekh, Vice President - Technical Research, PL Capital - Prabhudas Lialladher stays bullish on IRFC. The analyst has recommended BUY as of now with target price of Rs 165.
As per TopNews report, Anuj Gupta of Ya Wealth Global Research emphasizes IRFC's support at Rs 130-next strong support at Rs 120-and advocates buying on dips for investors with a longer horizon. He identifies resistances at Rs 145 and Rs 160, expressing confidence in the company's future given its fundamentals.
Currently, IRFC's return on equity is healthy at 19.20%.
About IRFC:
Indian Railway Finance Corporation (IRFC) is the dedicated funding arm of Indian Railways. The company was set up in December 1986 for mobilizing funds from domestic and overseas markets to meet the pre-dominant portion of Extra Budgetary Resources requirement of Indian Railways.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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