Indian Railway Finance Corporation Limited (IRFC.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+203.8%

₹230.11

vs ₹75.75 price

Levered DCF

-₹497.90

After debt service

Piotroski score

2 / 9

Weak

Altman Z-score

0.3

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	16.27×	24.98×	29.49×	5.64×	4.6×	6.26×	7.29×	7.68×
P/B	2.01×	3.08×	3.85×	0.78×	0.68×	0.77×	0.77×	0.66×
P/S	4.17×	6×	7.13×	1.47×	1.38×	1.76×	1.74×	1.49×
EV / EBITDA	78.45×	39.23×	49.51×	40.15×	36×	33.76×	27.47×	21.44×
Gross margin	26.8%	54.0%	46.0%	47.9%	57.7%	66.9%	71.3%	82.4%
Operating margin	26.6%	53.4%	45.5%	47.3%	57.1%	66.2%	70.9%	82.0%
Net margin	25.6%	24.0%	24.2%	26.1%	30.0%	28.0%	23.8%	19.5%
Current ratio	12.3×	22,994.09×	2,118.06×	19,070.73×	0.97×	1.11×	0.46×	0×
Debt / equity	7.69×	7.83×	8.38×	9.38×	9.47×	9×	7.74×	6.99×
Interest coverage	0×	1.81×	2.11×	2.19×	2.12×	1.75×	1.53×	1.47×
Dividend yield	2.4%	1.9%	1.0%	5.4%	3.6%	6.8%	0.9%	2.3%
Payout ratio	39.2%	46.2%	30.6%	30.3%	16.5%	42.4%	6.3%	17.5%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	12.4%	12.3%	13.0%	13.8%	14.9%	12.3%	10.5%	8.6%
Return on invested capital	1.4%	2.9%	2.4%	2.2%	2.7%	2.7%	3.5%	3.7%
Return on assets	1.4%	1.3%	1.3%	1.3%	1.4%	1.2%	1.2%	1.0%
Free cash flow yield	3.5%	5.1%	4.2%	-82.2%	-229.8%	-324.9%	-269.1%	-254.8%
Earnings yield	6.1%	4.0%	3.4%	17.7%	21.7%	16.0%	13.7%	13.1%
Enterprise value	₹5.5T	₹5.7T	₹6T	₹4.5T	₹4.2T	₹3.5T	₹2.6T	₹1.9T
Net debt / EBITDA	62.19×	28.03×	33.93×	37.07×	33.58×	31.1×	24.99×	19.6×
Cash conversion cycle (days)	5,126	3,839	252	6,287	-93	541	-9,347	4,288