PSU Stocks IRFC’s fundamentals remain strong and resilient, supported by consistent profitability and steady growth in key financial parameters across FY26. In Q1 FY26, the company reported total revenue of ₹6,918.24 crore and a robust PAT of ₹1,745.69 crore, marking a healthy 10.7% YoY rise, driven by improved asset quality and an expansion in net interest margin to 1.53%, its best performance in three years. The book value also strengthened to ₹41.65 per share, reinforcing IRFC’s solid balance sheet.
In Q2 FY26, revenue moderated to ₹6,371.91 crore, reflecting an ~8% YoY decline, yet PAT rose to ₹1,776.98 crore, up 10.19% YoY, showcasing superior margin management and efficient financing operations. The company also announced its highest-ever interim dividend of ₹1.05 per share, highlighting strong shareholder returns. With Q2 EPS at ₹1.36 and the company’s long-term role as a key financier for Indian Railways, IRFC continues to demonstrate stable fundamentals, predictable earnings, and strong government-backed credibility—positioning it among the most dependable PSU stocks in the financing sector.
In Q2 FY26, revenue moderated to ₹6,371.91 crore, reflecting an ~8% YoY decline, yet PAT rose to ₹1,776.98 crore, up 10.19% YoY, showcasing superior margin management and efficient financing operations. The company also announced its highest-ever interim dividend of ₹1.05 per share, highlighting strong shareholder returns. With Q2 EPS at ₹1.36 and the company’s long-term role as a key financier for Indian Railways, IRFC continues to demonstrate stable fundamentals, predictable earnings, and strong government-backed credibility—positioning it among the most dependable PSU stocks in the financing sector.
From a technical standpoint, IRFC is currently trading near its 52-week low of ₹108.04 after a steady decline from its recent high of ₹130.85. Today’s session closed at ₹114.71 after forming a bullish doji candlestick, often signaling potential reversal or short-term indecision near support zones. The Relative Strength Index (RSI) stands at 27.84, indicating deep oversold territory. This makes IRFC increasingly attractive for traders monitoring swing trading stocks poised for a bounce. However, the MACD remains bearish, with the MACD line below the signal line, while price continues to trade below key moving averages — a sign that the downtrend is still in control unless confirmed by stronger buying volume.
IRFC Trading Range Analysis
Price action currently highlights a narrow consolidation range near the lower Bollinger Band (₹114.50), suggesting selling pressure may be exhausting. The upper and middle bands at ₹123.90 and ₹119.02 indicate potential upside targets if momentum reverses. For now, IRFC is hovering at a sensitive spot where a breakdown could lead to new lows, but a bounce could result in a short-term recovery toward the ₹118–₹121 zone. Traders closely tracking PSU counters will find this setup interesting, especially with the stock holding near historically strong demand levels.
IRFC: Market Viewpoint
Market sentiment around IRFC remains mixed—long-term investors still view it as a stable government-backed financial entity with predictable earnings, but short-term sentiment has weakened due to the correction from recent highs. Broader market volatility, FII outflows, and rising bond yields have also pressured NBFC stocks. Yet, IRFC continues to attract attention as a value opportunity, particularly among retail investors searching for reliable stock to buy now candidates within the PSU universe. Additionally, any positive news around railway capex, budget allocations, or PSU re-rating themes can quickly revive sentiment and trigger momentum buying.
Resistance, Support & Trading View
Stop-Loss Suggestion (For Swing Traders)
Final Recommendation: Buy / Sell / Wait?
Based on the current setup:
Disclaimer
This blog is for educational and informational purposes only and should not be considered financial, investment, or trading advice. Stock markets are subject to risks, and past performance does not guarantee future results. Always consult a SEBI-registered financial advisor before making any investment decisions. The companies or stocks mentioned here are included solely for learning and research purposes—not as recommendations. NexGen Trade encourages readers to perform their own analysis and invest responsibly.
Frequently Asked Questions
Is IRFC a good PSU stock to buy now?
IRFC is considered a strong PSU stock due to its stable earnings, government backing, and consistent profitability. With the stock currently in an oversold zone (RSI around 28), it may offer an attractive opportunity for long-term investors and swing traders—but confirmation of trend reversal is advisable.
Why is IRFC’s share price falling recently?
The recent decline is mainly due to overall market volatility, pressure on NBFC stocks, FII outflows, and the stock correcting from its previous high of ₹130+. Despite this, IRFC’s fundamentals remain sound with double-digit PAT growth in FY26.
What are the key financial highlights of IRFC for FY26?
In Q1 and Q2 FY26, IRFC posted strong PAT growth of around 10% YoY each quarter. Q2 FY26 revenue dipped ~8% YoY, but profit increased due to improved margins. The company also announced its highest-ever interim dividend of ₹1.05 per share.
Is IRFC suitable for swing trading?
Yes, IRFC may offer a setup for swing traders since it is trading near strong support levels with oversold RSI and a bullish doji candle. However, the overall trend is still bearish, so traders must use strict stop-loss and wait for confirmation above key resistance levels.
What is the long-term outlook for IRFC?
The long-term outlook remains positive because IRFC is a crucial financing arm of Indian Railways, has a massive AUM base, stable government support, predictable cash flows, and consistent dividend history. It is widely viewed as a dependable long-term PSU stock.
What are the key support and resistance levels for IRFC?
Current support levels are around ₹114 and ₹108 (52-week low). Immediate resistance lies near ₹119–₹120, followed by a major resistance zone at ₹123–₹124. A breakout above these levels may signal short-term upward momentum.
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