Indian Railway FinanceNSE:IRFC +2.02%75 Return-on-Tangible-Equity is 11.89% as of Mar. 2026, which is 7% below its 10-year median of 12.81. GuruFocus rates NSE:IRFC with a GF Score™ of 75/100 and a GF Value™ of ₹127.85 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 525 Credit Services companies, Indian Railway Finance ranks better than 70.29% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Indian Railway Finance's annualized net income for the quarter that ended in Mar. 2026 was ₹67,372 Mil. Indian Railway Finance's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹566,791 Mil. Therefore, Indian Railway Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.89%.
The historical rank and industry rank for Indian Railway Finance's Return-on-Tangible-Equity or its related term are showing as below:
NSE:IRFC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 9.47 Med: 12.81 Max: 15.97
Current: 12.67
During the past 9 years, Indian Railway Finance's highest Return-on-Tangible-Equity was 15.97%. The lowest was 9.47%. And the median was 12.81%.
NSE:IRFC's Return-on-Tangible-Equity is ranked better than 70.29% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs NSE:IRFC: 12.67
Indian Railway Finance (NSE:IRFC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Indian Railway Finance Return-on-Tangible-Equity Related Terms
Indian Railway Finance Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Indian Railway Finance's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
NSE:IRFC vs V, MA, AXP: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Indian Railway Finance's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Indian Railway Finance's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 11.89% mean?
Indian Railway Finance (NSE:IRFC) has a Return-on-Tangible-Equity of 11.89% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Indian Railway Finance and its competitors. This is near median its historical median of 12.81. Over the past decade, Indian Railway Finance's Return-on-Tangible-Equity has ranged from 9.47 to 15.97. According to the industry distribution chart, Indian Railway Finance ranks #156 out of 525 companies in the Credit Services industry, placing it in the top 29.7%.
Is Indian Railway Finance's Return-on-Tangible-Equity too high?
Indian Railway Finance's current Return-on-Tangible-Equity of 11.89% is near median its 10-year median of 12.81. Over the past 10 years, this metric has ranged from a low of 9.47 to a high of 15.97. The Credit Services industry median Return-on-Tangible-Equity is 7.01. Indian Railway Finance's value of 11.89% is 69.6% above this industry median. Based on the distribution chart, Indian Railway Finance ranks #156 out of 525 companies in the Credit Services industry, which is above the industry midpoint. Overall, Indian Railway Finance has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's Return-on-Tangible-Equity compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #156 out of 525 companies for Return-on-Tangible-Equity. This puts Indian Railway Finance in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.01. Indian Railway Finance's value of 11.89% is 69.6% above this benchmark. Historically, Indian Railway Finance's own Return-on-Tangible-Equity has ranged from 9.47 to 15.97 over the past decade. While the company's 10-year median is 12.81 vs. the industry median of 7.01, 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 Return-on-Tangible-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Indian Railway Finance's current Return-on-Tangible-Equity of 11.89% is 69.6% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Indian Railway Finance and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Finance's current Return-on-Tangible-Equity is 11.89%, which is near median its own 10-year median of 12.81. 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 Possible Value Trap. The stock's GF Value™ is ₹127.85, compared to a current price of ₹89.90 — trading 29.7% below its estimated fair value. The current Return-on-Tangible-Equity is 11.89%, which is near median its 10-year median of 12.81 and 69.6% above the Credit Services industry median of 7.01. Indian Railway Finance's overall GF Score™ is 75/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Indian Railway Finance (NSE:IRFC), the current Return-on-Tangible-Equity is 11.89% 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 ₹89.90 is trading 29.7% below its estimated GF Value™ of ₹127.85.
GuruFocus considers Indian Railway Finance to be Possible Value Trap.
Key valuation signals for NSE:IRFC:
Return-on-Tangible-Equity: 11.89% (near median its 10-year median of 12.81)
GF Value™: ₹127.85 vs. price of ₹89.90 (29.7% below fair value)
Industry Position: 69.6% above the Credit Services median (#156 of 525)
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.
75GF Score
Get the complete analysis for NSE:IRFC
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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