IRFC Dividend Announcement & Stock Performance: Key Updates for Investors

The Indian Railway Finance Corporation (IRFC) is set to announce its second interim dividend for FY 2024-25 today, with March 21, 2025, as the record date for eligible shareholders. IRFC shares rose 1.7% to ₹119.70 ahead of the announcement but remain 48% below their 52-week high. The company has consistently paid dividends twice a year since its 2021 IPO, with a current yield of 1.26%. In Q3, IRFC’s net profit grew 2% YoY to ₹1,630.66 crore, while revenue increased by 0.4% to ₹6,763.43 crore. The Indian government holds an 86.36% stake, and IRFC’s market capitalization is nearly ₹1.6 lakh crore.

Since its IPO at ₹26 per share, the stock has surged 360%. However, Investec has issued a ‘sell’ rating with a target price of ₹50, expecting a 50% decline. Meanwhile, other companies like Castrol India, Angel One, and Greenlam Industries have also announced dividends or bonus issues this week. PFC declared an interim dividend of ₹3.5 per share, and Greenlam announced a 1:1 bonus issue. Investors should closely monitor March 21, as it is a key record date for multiple stocks, impacting dividend and bonus eligibility.

IRFC Dividend Announcement & Stock Performance: Key Updates for Investors

The Indian Railway Finance Corporation (IRFC) is making headlines as its board prepares to announce the second interim dividend for the financial year 2024-25. As a Navratna public sector company, IRFC holds a prestigious position, and the upcoming board meeting will finalize the dividend details. The record date for the dividend has already been set for March 21, 2025, meaning shareholders listed in the company’s records by this date will be eligible to receive the payout.

This was confirmed in a regulatory filing on March 10. According to SEBI rules, the record date and the ex-date (when the stock trades without dividend eligibility) are the same due to the T+1 settlement cycle in stock markets.

Despite its strong dividend history, IRFC’s stock has faced challenges recently. Over the past month, the share price has dropped by 7%, and since the start of the year, it has fallen by 22%. In the last six months, the stock has declined by 30%. However, looking at the bigger picture, IRFC has delivered an impressive 330% return over the past two years. On Thursday, the stock closed at ₹117.70 per share on the BSE, down 1.22%, with the company’s market capitalization standing at over ₹1.53 lakh crore.

On Monday, ahead of the board meeting, IRFC shares saw a slight uptick, rising 1.7% to ₹119.70, pushing the market cap closer to ₹1.6 lakh crore. Despite this gain, the stock is still down 48% from its 52-week high of ₹229.05, reached in July 2024. Since its IPO in January 2021, IRFC has consistently paid dividends twice a year. The dividend per share for previous years was ₹1.82 (2021), ₹1.43 (2022), ₹1.50 (2023), and ₹1.50 (2024). With a dividend yield of 1.26%, IRFC remains a reliable dividend-paying stock.

In terms of financial performance, IRFC reported a 2% year-on-year increase in net profit for the third quarter of FY24, reaching ₹1,630.66 crore. Revenue from operations also grew slightly by 0.4% to ₹6,763.43 crore. The Indian government remains the majority stakeholder, holding 86.36% of the company’s shares. Established in 1986, IRFC plays a crucial role in financing rolling stock purchases, railway infrastructure leasing, and providing loans to railway entities. Since its IPO at ₹26 per share, the stock has surged by 360%.

However, not all analysts are optimistic about IRFC’s future. Investment firm Investec has given the stock a ‘sell’ rating, with a price target of ₹50, suggesting a potential 50% decline from current levels. This contrasts with the company’s strong historical performance and consistent dividend payouts.

In addition to IRFC, several other companies are set to announce corporate actions this week. Castrol India has declared a final dividend of ₹5 per share and a special dividend of ₹4.5 per share, totaling ₹9.5 per share, with a record date of March 18. Angel One has announced an interim dividend of ₹11 per share, with a record date of March 20.

Power Finance Corporation (PFC) will pay an interim dividend of ₹3.5 per share, with a record date of March 19. Greenlam Industries has approved a 1:1 bonus issue, meaning shareholders will receive one bonus share for every share held, with a record date of March 21. ICICI Securities will see its last trading day on March 21, with the stock ceasing to trade from March 24.

This week is packed with important corporate actions, making it essential for investors to stay updated on record dates to ensure they don’t miss out on dividends, bonus shares, and other benefits. For IRFC shareholders, the upcoming dividend announcement and record date are key events to watch, especially given the company’s strong track record of rewarding investors.