IRFC shares gained 9.97% today, post rail fare hike

Shares of Indian Railway Finance Corporation (IRFC) ended the day today, 26^th December, 2025 up by 9.97% at Rs 133.60. Nifty 50 ended the day, down by 0.38%. IRFC shares gained after the passenger fare hike at Indian Railways came into effect from today.

Passenger fare increase

This is the second fare hike in 2025. The current rate hike increases ticket prices by 1 paisa per kilometer for ordinary class for train travel beyond 215 kilometers. Ticket prices will increase by 2 paisa per kilometer for non-AC classes in express and mail trains. It will also increase by 2 paisa per kilometer for AC classes of all trains.

IRFC is a non-banking financial company (NBFC) that essentially raises funds from markets for buying assets or for financing projects of Indian Railways. It is majorly owned by Government of India. Extra Budgetary Requirements of Indian Railways are financed by IRFC.

The rate hike will improve the revenues and financial health of Indian Railways. IRFC buys assets such as rolling stock from the money that it raises from markets. It then leases these assets to Indian Railways. The Railways pays lease rentals to IRFC on these assets. Better financial position of Railways because of this fare hike is also a favorable thing for IRFC.

IRFC shares are down by 11.14% YTD in 2025

IRFC shares have gained 19.68% in the past 5 days. Year-to-date (YTD) in 2025, its stock has lost 11.14%. Nifty 50 index has gained 9.68% YTD this year. IRFC shares have underperformed the Nifty 50 index by more than 20% this year. Nifty Financial Services ex-bank index has gained 28.04% YTD in 2025. IRFC shares have underperformed this index by more than 39% this year. The stock is currently trading at 12-month trailing Price-to-earnings (P/E) ratio of 25.52.

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Source : NSE