CMP: ₹131 | Sector: PSU NBFC | Date: 22nd July 2025
Highest quarterly revenue & profit in history
PAT up 10.7% YoY; Revenue growth across both segments
Interest Income and Lease Income are both major contributors
Net Interest Margin: 1.53% (3-yr high)
Zero NPA, industry’s lowest OPEX, healthy balance sheet (Debt/Equity: 7.44)
Navratna status for enhanced autonomy
Management: “Reflects robust financial strategy, supporting India’s railway infrastructure transformation.”
Note:
Interest Income declined YoY & QoQ—mainly as more assets are now under lease.
Lease Income up 9.2% YoY, now the dominant driver.
Zero NPA streak (best in PSU NBFC space)
OPEX: Still industry lowest
Debt/Equity: 7.44 (improved)
Sales Growth Estimate: 2–3%
PAT Growth: 8–10%
Margins: 24.5–25% sustainable
Profit Growth: Supported by higher lease income
Next 1–2 Quarters:
Continued focus on lease-based funding, steady margins, robust asset quality
Long-Term:
Navratna status, government’s railway capex = stable pipeline, low credit risk
Positives:
Strong lease income growth
Record profit & margins
Zero NPA, low OPEX
Sovereign client (Indian Railways)
Risks:
Reliance on government policy/capex
Limited diversification
Investment View:
Cautiously Optimistic (Hold/Add on dips) for conservative portfolios.
This analysis is provided solely for informational purposes and does not constitute investment advice. Investors should perform their own due diligence before making investment decisions.