Loans likely to cross Rs 1 lakh cr milestone in FY27: IRFC CMD

State-owned Indian Railway Finance Corporation (IRFC) has set a target of crossing a milestone of Rs 1 lakh crore loan sanction during the current financial year.

To fund its business growth, the public sector undertaking (PSU) of the Ministry of Railways is looking to raise Rs 70,000 crore, including from overseas in FY27.

“We are aiming for a loan sanction of Rs 1 lakh crore and disbursement of about Rs 40,000 crore during the ongoing financial year, as the pipeline of high-quality infrastructure projects looks strong,” IRFC Chairman and Managing Director Manoj Kumar Dubey said.

A steady pipeline and emerging opportunities in sectors such as metro and ports are expected to further accelerate growth in the coming financial year, following its whole-of-government approach, he said.

During FY26, lRFC sanctioned projects worth Rs 72,949 crore and disbursed approximately Rs 35,067 crore, exceeding its annual guidance.

The company, which last year got Navratna status, witnessed its net worth raising to all-time high at Rs 56,748 crore and AUM crossing a record high at Rs 4.85 lakh crore.

The diversification-led expansion resulted in improved spreads and a consistent rise in net interest margin (NIM), while lRFC maintained its zero NPA status.

“Our diversification strategy is now translating into stronger spreads, improved margins and enhanced shareholder value, he said, adding that NIM should further improve to 1.65 per cent in FY27 as against 1.5 per cent recorded in FY26.

He further said IRFC made a structural shift in business model, from a traditional railway financier to a diversified infrastructure financing institution, keeping railways at its Centre.

With Indian Railways not availing fresh disbursements since 2023-24, the company has expanded into sectors with strong forward and backward linkages to railways, including power generation, renewable energy, transmission, fertilisers and railway-linked infrastructure.

For the financial year ended March 31, 2026, IRFC reported its highest-ever profit of Rs 7,009 crore, compared to Rs 6,502 crore in 2024-25, registering a growth of 7.8 per cent.

The company’s total assets crossed the landmark milestone of Rs 5 lakh crore for the first time in FY26.