NEW DELHI: Indian Railway Finance Corporation and Indian Railway Catering and Tourism Corporation were granted Navratna PSU status by the Central government on March 2, 2025. This action gives these companies more flexibility while conducting their operation. The decision has also placed seven listed government-owned businesses under the state transporter's charge under the tag.
Out of the twelve railway CPSEs, Concor, RVNL, IRCON, RITES, and RailTel were previously categorized under different statuses. According to railway minister Ashwini Vaishnaw, "all seven (listed) railway CPSEs got upgraded to Navratna status after 2014." Concor was the first to be listed in July 2014.
IRCTC and IRFC Join Navratna List
On Monday, the Indian Railway Catering and Tourism Corporation (IRCTC) and IRFC were granted Navratna status, bringing the total number of Central Public Sector Enterprises (CPSEs) with this designation to 26. The Department of Public Enterprises made this announcement. Following this, IRCTC's stock also rose by 0.7% to ₹680.7 on the BSE.
IRFC Stock Rises After Navratna Status Approval
After receiving Navratna status from the Indian government, Indian Railway Finance Corporation (IRFC) saw its shares rise by 3.7% to ₹115.25 on the BSE on Tuesday.
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IRFC’s Financial Performance
As per government data, IRFC, a subsidiary of the Ministry of Railways, reported:
- Annual turnover: ₹26,644 crore
- Profit after tax: ₹6,412 crore (FY 2023–24)
- Net worth: ₹49,178 crore
Despite this, IRFC’s stock has declined:
- 6.8% in the last week
- 15.9% in the last month
- 35.5% in the last six months
Government May Reduce Stake in IRFC
To comply with the Minimum Public Shareholding (MPS) rule, the government might sell some of its stake in IRFC. As of the December quarter, the government held an 86.36% stake in the railway financier.
Navratna Status and Investment Benefits
Navratna companies can independently invest up to ₹1,000 crore or 15% of their net worth.
IRCTC’s Financial Performance
IRCTC, which manages railway ticket booking and catering services, recorded:
- Revenue: ₹4,270 crore
- Profit after tax: ₹1,111 crore
- Net worth: ₹3,230 crore
The Railway Ministry highlighted that all railway CPSEs are making profits, with their combined profit rising from ₹7,015 crore in FY21 to ₹11,780 crore in FY24.
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