Indian Railway Finance Corporation (IRFC) shares extended their gains for the third consecutive session on May 16, 2025, jumping by over 7% to hit an intraday high of ₹140.20 on the BSE. The irfc share price closed near ₹138.75, up 6.53% on the day, reflecting strong investor confidence and positive market sentiment. Over the week, the irfc share price has surged approximately 15%, accompanied by significantly higher trading volumes, which averaged around 33.92 lakh shares—much above the two-week average of 13.10 lakh shares.
The sharp rise in the irfc share price comes amid the Indian government’s approval for IRFC to raise up to ₹10,000 crore via deep-discount bonds. This strategic move is designed to diversify the company’s funding sources, strengthening its financial base as it continues to support the Indian Railways’ ambitious infrastructure projects. The approval has been welcomed by investors, who view the bond issue as a prudent step in broadening IRFC’s capital structure amid a competitive financing environment for public sector undertakings (PSUs).
Despite reporting a 2.1% year-on-year decline in net profit to ₹1,682 crore in Q4 FY25, IRFC’s revenue from operations increased by 3.8% to ₹6,722.83 crore, highlighting steady top-line growth. The company’s financial results, coupled with its strategic initiatives, have been positively received by the market, contributing to the rise in irfc share price.
Analysts remain optimistic about IRFC’s near-term prospects. Osho Krishan, Senior Analyst at Angel One, noted that the recent performance of the irfc share price signals a potential trend reversal with key resistance levels at ₹145 and then in the ₹150–152 range. Technical indicators also suggest immediate support around ₹130 and resistance near ₹132, making the stock attractive to both momentum and value investors.
Investor sentiment is further buoyed by IRFC’s solid fundamentals. The company benefits from a reliable revenue stream through its financing of Indian Railways projects, backed by the government which holds an 86.36% stake as of March 2025. IRFC’s ‘Navratna’ status, granted the same month, enhances its operational and financial autonomy, enabling it to make faster and more independent strategic decisions.
Other key financial metrics supporting investor interest include a price-to-earnings (P/E) ratio of 27.86 and a dividend yield of around 1.41%, offering an appealing blend of growth and income. The stock trades within a 52-week range of ₹108.04 to ₹229.00, with the recent uptick suggesting renewed investor appetite.
In summary, the strong performance of the irfc share price on May 16, 2025, reflects positive market reaction to its upcoming bond issue, steady revenue growth, and robust technical outlook. With the Indian government’s backing and strategic initiatives underway, IRFC is positioned to continue playing a critical role in financing the nation’s railway infrastructure, making it a stock to watch in the PSU segment.
