Indian Railway Finance Corporation on track for an upgrade to Maharatna

New Delhi: Indian Railway Finance Corporation (IRFC) may soon become the first railway 'Maharatna', as a proposal to this effect is "close to final approvals", said officials privy to the development.

Once IRFC is elevated from its current Navratna status-accorded in March last year-the board of the government infrastructure projects focused lender will have more autonomy. The upgrade to the highest recognition for CPSEs is also expected to lower its borrowing costs and lending rates.

"Maharatna status to IRFC is expected shortly. Indian Railways has already recommended the same," a senior official told ET on condition of anonymity.


Fourteen central public sector enterprises (CPSEs) in the country have so far been elevated to the Maharatna status, the latest being Hindustan Aeronautics Limited in October 2024. Boards of Maharatna firms can invest up to ₹5,000 crore or 15% of their net worth in a single project without government approval. For Navratnas, the cap is ₹1,000 crore.

CPSEs being considered for the upgrade are Navratnas with average annual turnover of more than ₹25,000 crore in the past three years, net worth exceeding ₹15,000 crore and net profit after tax greater than ₹5,000 crore. The companies also need to have significant international operations or a global presence.

In October 2025, IRFC informed the stock exchanges that its net worth stood at ₹56,193.85 crore. The company said it sanctioned and executed new business agreements aggregating ₹45,382 crore during the first half of 2025-26 across railway-linked sectors such as power generation, including renewable energy, energy transmission and coal mining, and industrial infrastructure.

"These sanctions represent a ninefold increase from the ₹5,250 crore executed in the preceding financial year," IRFC said.

Earlier this week the company said it had been rated 'excellent' by the Department of Public Enterprises for the fifth consecutive year since listing in 2020-21.

In a statement, company chairman and managing director Manoj Kumar Dubey said IRFC achieved its annual sanction guidance of Rs 60,000 crore for 2025-26 by December-end.

Last month IRFC refinanced a ₹10,000 crore foreign currency debt availed from World Bank for Eastern Dedicated Freight Corridor.