IRFC Reports ESG Performance, Highlights Shift to Green Financing and Operational Efficiency in FY 2025-26

IRFC Reports ESG Performance, Highlights Shift to Green Financing and Operational Efficiency in FY 2025-26​

Indian Railway Finance Corporation Limited (IRFC), a key government undertaking dedicated to funding the railway ecosystem, has released its Business Responsibility and Sustainability Report (BRSR) for the Financial Year 2025-26. The report details the company's environmental, social, and governance (ESG) commitments, outlining significant steps toward sustainable finance and operational optimization while maintaining its role as a major financial enabler for Indian Railways.

IRFC, incorporated on December 12, 1986, operates primarily in the financial leasing sector, with Financial Leasing constituting 95.50% of its turnover. The corporation maintains a strong financial standing, reporting paid-up capital of ₹ 13,068.50 Crore as of March 31, 2026.

Commitment to ESG and Climate Action​

IRFC has integrated ESG principles into its core business strategy. The company emphasizes environmental appraisal during project evaluation, covering aspects such as water, air, land, and geographical location to mitigate detrimental impacts. The report outlines specific performance metrics related to environmental stewardship.

Key environmental metrics for FY 2025-26 include:


The company highlighted its commitment to green initiatives, including the procurement of hybrid cars for official use, aiming to reduce dependence on conventional fossil fuels and lower the overall carbon footprint in transportation-related activities. Furthermore, IRFC successfully implemented an Enterprise Resource Planning (ERP) system with cloud hosting and disaster recovery capabilities through RailTel Corporation Ltd., which is reported to have minimized paper consumption and manual processes.

Operational Scope and Financial Ecosystem​

As a Systemically Important Non-Deposit taking NBFC and Infrastructure Finance Company (NBFC-IFC), IRFC's activities are geared toward financing the development of railway infrastructure and related sectors nationwide. The company serves 36 states across India. Its core mission involves meeting a significant portion of the Extra Budgetary Resources (EBR) requirement of Indian Railways through competitive market borrowings.

IRFC is actively diversifying beyond its traditional role in railway asset financing, extending its footprint into various sectors that have forward and backward linkages with railways. These expanding areas include power generation and transmission, mining, fuel, coal, metro rail, fertilizer, and logistics. The corporation has entered into Memorandums of Understanding (MoUs) for strategic collaborations with several entities, including DMRC-Delhi Metro Rail Corporation, JNPA-Jawaharlal Nehru Port Authority, and RITES.

Social Impact and Human Capital Development​

The company’s social governance focuses heavily on employee well-being, gender diversity, and addressing societal needs through Corporate Social Responsibility (CSR).

Key aspects of the company's human capital management include:

• Employee Welfare: The company incurred 0.0022% of total revenue towards employee well-being measures in FY 2025-26.
• Training and Development: Employees were covered in training programs, with a high percentage (88.06%) receiving career development training across the reporting periods.
• Gender Diversity: Gross wages paid to female employees stood at 23.99% of total wages for FY 2025-26, and zero complaints were reported regarding discrimination or sexual harassment against women in the workplace during the year.

IRFC's CSR initiatives are directed toward uplifting socio-economically disadvantaged groups across various states in India, including several projects implemented in Bihar, Chhattisgarh, Jharkhand, Uttar Pradesh, Maharashtra, Odisha, Haryana, Himanchal Pradesh and Rajasthan.

Governance and Stakeholder Relationships​

The company maintains a structured approach to stakeholder engagement through its dedicated policies. The Board of Directors is the highest authority overseeing sustainability matters. IRFC has adopted a Policy on Responsible Advocacy with Public and Regulatory Bodies, ensuring that its interactions with governmental bodies and regulatory authorities are transparent and responsible.

In terms of open business practices, the report detailed the share of Related Party Transactions (RPTs) in loans and advances at 6.23% for FY 2025-2026, while purchases from related parties stood at 3.34%. The company also noted that its procurement is conducted through the Government e-Marketplace (GeM), which promotes sustainable and transparent practices, with a significant portion of inputs sourced from Micro Small Enterprises (MSMEs/small producers) at 59.69% in FY 2025-2026.

IRFC Stock Price Movement​

On Friday, shares of Indian Railway Finance Corporation Limited edged higher to close at ₹89.15, posting a gain of 0.20% after trading up ₹0.18. The stock saw active movement during the session, with over 12 million shares transacted.