Indian Railway Finance Corporation is preparing an extensive overseas fundraising programme for FY27 as the state-owned infrastructure financier looks to strengthen its lending capabilities and expand beyond traditional railway financing activities.
According to reports, the company plans to raise nearly ₹24,000 crore to ₹28,000 crore through external commercial borrowings (ECBs) during the current financial year. The overseas borrowing initiative forms part of IRFC’s broader ₹70,000 crore borrowing plan approved for FY27.
IRFC Expands Focus on Global Borrowing Markets
IRFC Chairman and Managing Director Manoj Kumar Dubey stated that the company is exploring multiple international markets to optimise fundraising opportunities and diversify its borrowing profile.
The company expects approximately 35% to 40% of its total annual borrowings to come through the ECB route during FY27.
IRFC is likely to focus significantly on yen-denominated borrowings while also evaluating funding opportunities across various global debt markets depending on interest rate trends, currency conditions, and project financing requirements.
Apart from ECBs, the company also plans to raise nearly ₹20,000 crore through deep discount zero coupon bonds in phased issuances over the financial year.
Multiple Funding Instruments Under Evaluation
As part of its diversification strategy, IRFC is assessing several domestic and international financing instruments.
These include:
- Global medium-term notes
- Foreign currency bonds
- Masala bonds
- Green bonds
- ESG-linked bonds
- Multilateral funding arrangements
- Debentures and structured financing products
The company’s evolving borrowing framework reflects its ambition to position itself as a broader infrastructure financing institution rather than remaining focused solely on railway financing.
Diversification Beyond Railways Gains Momentum
IRFC has been steadily expanding its lending activities into sectors beyond core railway infrastructure.
The company has already financed projects involving:
- Metro rail systems
- Renewable energy projects
- Power transmission infrastructure
- Urban mobility projects
- Warehousing and logistics infrastructure
IRFC has also extended financing support to several railway-linked organisations including:
- Rail Vikas Nigam Limited
- RailTel Corporation of India Limited
- Konkan Railway Corporation Limited
- Rail Land Development Authority
- Pipavav Railway Corporation Limited
The company stated that its lending model continues to prioritise government-backed and low-risk infrastructure projects to maintain asset quality.
Strong Financial Performance in FY26
IRFC reported stable financial growth during FY26, with net profit increasing by 7.8% year-on-year to ₹7,009 crore.
Revenue from operations stood at ₹27,284 crore, while assets under management rose to ₹4.85 lakh crore. The company’s net worth increased to ₹56,748.76 crore during the financial year.
IRFC sanctioned projects worth ₹72,949 crore and disbursed approximately ₹35,067 crore during FY26, exceeding internal targets.
The company is now targeting cumulative project sanctions of nearly ₹3 lakh crore over the next four years as it accelerates diversification into multiple infrastructure sectors.
IRFC Share Price Performance
As of May 18, 2026, at 10:15 AM, IRFC share price was trading at ₹95.71 per share, down 3.19% compared to the previous closing price.
Summary
IRFC is planning to raise up to ₹28,000 crore through external commercial borrowings during FY27 as part of its ₹70,000 crore annual borrowing programme. The company is expanding its financing activities beyond railways into sectors such as renewable energy, metro rail, power transmission, and urban infrastructure. Alongside ECBs, IRFC is also evaluating multiple domestic and global funding instruments to support long-term infrastructure growth while maintaining strong asset quality and operational stability.
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