Indian Railway FinanceNSE:IRFC -0.29%70 Dividend Payout Ratio is 0.79 as of Mar. 2026, which is 163% above its 10-year median of 0.30. GuruFocus rates NSE:IRFC with a GF Score™ of 70/100 and a GF Value™ of ₹127.72 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 194 Credit Services companies, Indian Railway Finance ranks worse than 59.79% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Indian Railway Finance's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.79.
The historical rank and industry rank for Indian Railway Finance's Dividend Payout Ratio or its related term are showing as below:
NSE:IRFC'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.17 Med: 0.3 Max: 0.46
Current: 0.38
During the past 9 years, the highest Dividend Payout Ratio of Indian Railway Finance was 0.46. The lowest was 0.17. And the median was 0.30.
NSE:IRFC's Dividend Payout Ratio is ranked worse than 59.79% of 194
companies
in the Credit Services industry
Industry Median: 0.32
vs NSE:IRFC: 0.38
During the past 9 years, the highest Trailing Annual Dividend Yield of Indian Railway Finance was 8.47%. The lowest was 0.69%. And the median was 2.08%.
During the past 12 months, Indian Railway Finance's average Dividends Per Share Growth Rate was -8.70% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 13.70% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was 21.40% per year.
During the past 9 years, the highest 3-Year average Dividends Per Share Growth Rate of Indian Railway Finance was 44.00% per year. The lowest was 12.60% per year. And the median was 13.70% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Indian Railway Finance (NSE:IRFC) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Indian Railway Finance Dividend Payout Ratio Related Terms
Indian Railway Finance Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for Indian Railway Finance's Dividend Payout Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Indian Railway Finance Dividend Payout Ratio Chart
NSE:IRFC vs V, MA, AXP: Dividend Payout Ratio Comparison
For the Credit Services subindustry, Indian Railway Finance's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Indian Railway Finance Dividend Payout Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Indian Railway Finance's Dividend Payout Ratio falls into.
Indian Railway Finance Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
Indian Railway Finance's Dividend Payout Ratio for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Indian Railway Finance (NSE:IRFC) has a Dividend Payout Ratio of 0.79 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Indian Railway Finance and its competitors. This is 163% above median its historical median of 0.30. Over the past decade, Indian Railway Finance's Dividend Payout Ratio has ranged from 0.17 to 0.46. According to the industry distribution chart, Indian Railway Finance ranks #116 out of 194 companies in the Credit Services industry, placing it in the top 59.8%.
Is Indian Railway Finance's Dividend Payout Ratio too high?
Indian Railway Finance's current Dividend Payout Ratio of 0.79 is 163% above median its 10-year median of 0.30. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 0.46. The Credit Services industry median Dividend Payout Ratio is 0.32. Indian Railway Finance's value of 0.79 is 146.9% above this industry median. Based on the distribution chart, Indian Railway Finance ranks #116 out of 194 companies in the Credit Services industry, which is below the industry midpoint. Overall, Indian Railway Finance has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's Dividend Payout Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #116 out of 194 companies for Dividend Payout Ratio. This places Indian Railway Finance in the lower half of its industry. The industry median Dividend Payout Ratio is 0.32. Indian Railway Finance's value of 0.79 is 146.9% above this benchmark. Historically, Indian Railway Finance's own Dividend Payout Ratio has ranged from 0.17 to 0.46 over the past decade. While the company's 10-year median is 0.30 vs. the industry median of 0.32, Indian Railway Finance has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Credit Services company?
The median Dividend Payout Ratio among Credit Services companies is 0.32, based on 194 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Indian Railway Finance's current Dividend Payout Ratio of 0.79 is 146.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Indian Railway Finance and its competitors. For the Credit Services industry, the median Dividend Payout Ratio is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Finance's current Dividend Payout Ratio is 0.79, which is 163% above median its own 10-year median of 0.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Finance stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Finance (NSE:IRFC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹127.72, compared to a current price of ₹90.57 — trading 29.1% below its estimated fair value. The current Dividend Payout Ratio is 0.79, which is 163% above median its 10-year median of 0.30 and 146.9% above the Credit Services industry median of 0.32. Indian Railway Finance's overall GF Score™ is 70/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Indian Railway Finance (NSE:IRFC), the current Dividend Payout Ratio is 0.79 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Indian Railway Finance (NSE:IRFC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Finance stock appears to be undervalued.
The current stock price of ₹90.57 is trading 29.1% below its estimated GF Value™ of ₹127.72.
GuruFocus considers Indian Railway Finance to be Modestly Undervalued.
Key valuation signals for NSE:IRFC:
Dividend Payout Ratio: 0.79 (163% above median its 10-year median of 0.30)
GF Value™: ₹127.72 vs. price of ₹90.57 (29.1% below fair value)
Industry Position: 146.9% above the Credit Services median (#116 of 194)
No single metric tells the full story. See the NSE:IRFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Finance Corp Ltd is engaged in the business of borrowing funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. Its only operating segment is Leasing and Finance. The company generates maximum revenue from Lease Income.
70GF Score
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Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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