IRFC Board Approves Massive ₹70,000 Crore Capital Raise For FY27

The state-run Indian Railway Finance Corporation (IRFC) has approved a plan to raise up to ₹70,000 crore in FY27. The proceeds will be utilised to fund projects of Indian Railways, facilitate new business projects, refinance existing borrowings, and fulfil overall corporate needs.

In an exchange filing on 9 March 2026, the company said the funds may be raised in multiple tranches through both domestic and international markets. This will be based on the current market trends and capital requirements.

How Will IRFC Raise The Funds?

IRFC said it could use a range of financing instruments to mobilise the capital. These may include:

• Bonds and debentures

• External Commercial Borrowings (ECBs)

• Global Medium-Term Notes

• Foreign currency bonds

• Rupee-denominated offshore bonds, such as masala bonds

• Green and Environmental, Social, and Governance (ESG)-linked bonds

• Multilateral loans and other structured financing tools

The company added that the fundraising will be subject to necessary regulatory approvals.

What About Dividend, Financial Performance, And Stock Movement?

The board also declared a second interim dividend of 0.75 per share of equity stock, besides approving the fundraising plan, which is to be distributed in FY26. Its date of record is 13 March 2026, and the dividend will be paid within 30 days after the declaration.

In terms of financial performance, the company reported its highest-ever quarterly profit in the December quarter, with net profit rising 10.5% year-on-year to ₹1,802 crore. However, revenue during the period declined slightly by 1.5% to ₹6,661 crore, compared with ₹6,763 crore in the same quarter last year.

On the market front, IRFC shares price dropped 2.06% and came at ₹97.42 in afternoon trade on Monday. The stock has declined nearly 22% over the past six months, reflecting broader market volatility and sector-specific pressures.

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What Does This Mean For Investors?

The massive fundraising initiative is an indicator of the ongoing capital needs of Indian Railways and the growing financing contribution by the IRFC. The various instruments, such as green and offshore bonds, used to raise funds would assist the company to get competitive rates on borrowings and diversify the pool of its investors.

For investors, the development highlights IRFC’s ongoing role as a key financing arm for India’s railway infrastructure expansion. Nevertheless, a higher level of borrowing can also be associated with the need to monitor the leverage and the cost of funding closely, especially when interest rates continue to be high.

Sources:

CNBC TV 18

The Hindu Business Line