Once a rare PSU success story, IRFC delivered a whopping 785% return post-IPO. But after hitting its peak in mid-2024, the stock is down over 36%. The reason? Growth has come to a grinding halt.

In this episode of Bottomline by Groww, we break down how record government funding left IRFC out of the loop in FY25 — with no new disbursements, stagnant revenues, and a shrinking leasing pipeline. Now, the company is trying to pivot through its “IRFC 2.0” strategy: diversifying into infrastructure finance, refinancing, and even energy. But can a company built on sovereign-backed leases successfully reinvent itself?

Key takeaways:
✅ Delivered 785% return since IPO; now down 36% from peak
✅ FY25 revenue up just 1.9%, PAT up 1.4% — sharp slowdown
✅ Disbursements fell from ₹1 lakh crore+ in FY21 to just ₹732 crore in FY24
✅ AUM stagnating at ₹4.60 lakh crore; no fresh leasing activity in FY25
✅ Government’s direct rail funding surged, eliminating the need for IRFC
✅ IRFC 2.0 aims to tap ₹2.5 lakh crore in non-Railway infra projects
✅ Approved ₹5,000 crore loan to NTPC; signed MoUs with IIFCL and RITES
✅ Key risks: execution, rising competition (REC, PFC), potential tax loss
✅ Trades at 3.5× P/B — high for a PSU with slowing growth
✅ Navratna status now allows more autonomy and faster investments

Can IRFC evolve beyond its leasing legacy? Or is it still a one-engine train?
Let us know in the comments, and subscribe to Bottomline for more financial deep dives.

Time Stamps
00:00 - Disclaimer
00:05 - Intro: IRFC’s rise and recent fall
01:16 - Why IRFC’s growth stalled in FY25
01:50 - The leasing slowdown and disbursement crash
03:39 - How IRFC’s business model works
05:31 - What is IRFC 2.0? The new strategy
07:35 - Risks: execution, competition, and tax status
08:35 - Valuation concerns and market comparison
09:27 - Can Navratna status fuel a comeback?
10:10 - Outro

Reading resource: www.bseindia.com/xml-data/corpfiling/AttachHis/999…

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Name of the Research Analyst - Aakash Baid
Name of the Creator - Radhika Bajaj
Date of Report: May 31, 2025
RA link - groww.in/pages/sebi-research-analyst-regulations