IRFC Gains On Earnings Beat: SEBI RA Spots Technical Strength, Recommends Buy

Published : Jul 23, 2025, 02:00 PM IST
https://stocktwits.com/news-articles/markets/equity/irfc-gains-on-earnings-beat-sebi-ra-spots-technical-strength-recommends-buy/ch8wSPHR5MO

Synopsis

Backed by a strong balance sheet and technical support zone, IRFC is flashing early signs of recovery.

Indian Railway Finance Corporation (IRFC) shares gained nearly 3% on Wednesday, driven by strong performance in its June quarter earnings (Q1 FY26).

The government-owned railway financial company reported a year-on-year (YoY) net profit increase of 10.7% at ₹1,746 crore, while revenues grew by 2.2% to ₹6,915 crore. Its finance costs decreased by 0.6% YoY to ₹5,124 crore.

IRFC further improved its debt-to-equity ratio to 7.44, signaling a stronger balance sheet. The company also maintained a zero non-performing assets (NPA) ratio, reflecting its stable financial position.

Additionally, its net worth rose to ₹54,423.96 crore, and its book value per share climbed to ₹41.65, indicating robust capital strength.

Technical Trends

SEBI-registered analyst Prabhat Mittal noted that IRFC stock has corrected almost 50% from July 2024 to March 2025. Since then, the stock has consistently formed higher tops and bottoms, which is a positive sign for the stock. 

Mittal added that in the last one year, IRFC has resisted multiple times at its 100-day moving average (DMA). Currently, it is taking support at this level after having breached it. 

He advised that traders can consider buying this stock at its current price of ₹134, with a strict stop-loss of ₹129, targeting ₹143 and ₹148.

Data on Stocktwits shows that retail sentiment has been ‘bullish’ on this counter for a week amid ‘heavy’ message volumes. 

IRFC shares have declined 10% year-to-date (YTD).  

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