Why is the IRFC Share Price Falling?

Posted by : Kashish Aggarwal | Tue Feb 24 2026

Click Here – Get Free Investment Predictions

As per the recent IRFC share price of ₹110.80, down 0.94% from the previous day, the share has been falling by 10.18% over the past year. The stock has been underperforming, falling consecutively over the last few days, resulting in a total decline of 1.93% during this period. From a technical perspective, IRFC’s share price is trading below all key moving averages, such as the 5-day, 20-day, 50-day, 100-day, and 200-day averages. The stock’s relative weakness compared to the Sensex, which is trading below its 50-day moving average, highlights the challenges IRFC faces in regaining upward momentum.

Table of Contents

Key Reasons Behind the IRFC Share Price Fall

Tap to Access Best Research Pieces

There are several reasons for the decline in the IRFC stock price, including market weakness, relative weakness compared to market indices, technical weakness, profit-booking following rallies, and a decline in market confidence.

Broad Market Weakness: IRFC has been impacted by market volatility, global trade tensions, and risk-off sentiment, leading investors to shun cyclical and financial sectors, including infrastructure financiers such as IRFC.
Underperformance Relative to Benchmarks: The stock has been underperforming the market and sector peers, which can affect market sentiment, particularly when the market or sector indices are rallying while the stock lags.
Technical Weakness: IRFC’s inability to hold key resistance levels and its trading below key moving averages have led to technical selling.
Profit Booking After Rallies: Following previous rallies or sector rotations (such as prior to budget expectations), profit-taking has led to episodic falls despite stable fundamentals.
High Valuation: Some market analysts point to relatively low domestic mutual fund holdings and valuation concerns, suggesting lower confidence among certain investor groups.

Note: For live IRFC Share Price Target, visit the univest app and check the stock fundamentals.

IRFC: Performance Analysis

The BSE 500 has generated returns of 13.10% over the last year; the stock has hugely underperformed, generating negative returns of -11.05%. Volatility in the market has been a significant feature of the trading day, with the Sensex’s 1,790-point drop underscoring the unsettled sentiment. Market sentiment was notably cautious, with the Sensex itself reversing sharply after a positive start. The stock has also reflected operational inefficiency with a premium valuation multiple, including a Price to Earnings ratio of 20.87 and a Price to Book Value of 2.58.

IRFC: Recent Share Price Movements

As per recent IRFC share movements, the current share price of IRFC is ₹109.80, and the stock price further declined to ₹101.23, down 0.37% on the day, with volumes of 2.12 lakh shares. The Sensex continued its modest upward trend, gaining 0.25%, while IRFC’s relative underperformance was highlighted. The mixed technical signals persisted, with the stock remaining below key moving averages, reinforcing a cautious market sentiment. The stock traded below all major moving averages, a configuration often interpreted as bearish. Delivery volumes declined sharply by over 60%, signalling waning institutional conviction and reduced long-term buying interest.

IRFC: Future Outlook

IRFC has reported consistent profits with double-digit PAT growth, and the company has also maintained a good dividend payout policy. This is one of the reasons this stock is preferred by investors looking not only for returns but also for stability. Supportive policies and infrastructure development are also expected to continue providing a stable business pipeline, helping maintain earnings visibility. The company is also expanding its business into other railway sectors, such as railways and industrial projects.

IRFC: Future Anticipation by Analysts

Analysis of order flow indicates that institutional investors have been actively trading Indian Railway Finance Corporation shares. The fact that the stock has high traded volume, high delivery, and occasional intraday volatility suggests that the trading environment is mixed but closely watched. Although the stock has experienced price fluctuations due to profit-taking and sector rotation, the long-term moving averages suggest caution at current levels. IRFC continues to benefit from its role as the financing arm of Indian Railways.

Also Read: Infosys Share Price Drops 2.04%

IRFC: Share Price Target

The IRFC share price target is 112.45. The consensus estimate represents an upside of 4.50% from the last price of ₹109.57. According to Wall Street analysts, the average 1-year price target for IRFC India is ₹120.12, with a low forecast of ₹100.80 and a high forecast of ₹115.50. According to projections from 31 analysts, the average 12-month price target for IRFC India is ₹123.10, with a high estimate of ₹125.23 and a low estimate of ₹100.90. IRFC India has a potential upside of +2.3%, based on analysts’ average price target.

Also Read: IEX Share Price Falls 25.96% YoY

IRFC: Analyst’s Rating

The average 12-month price target is ₹120.30, and the consensus rating is Hold (mix of Buy, Hold, & Sell).
The analyst’s target range is between ₹120.10 and ₹125.12.
According to some analysts, concerns remain about a ‘Reduce’ call at ₹100.90.
The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama).

Download the Univest iOS App or the Univest Android App to get daily stock recommendations and insightful research pieces!

What is the Right Time to Buy IRFC Shares?

According to analysts, IRFC’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in IRFC India. There are several factors to consider before investing in IRFC India Company shares.

Strong Fundamentals: Investors should review IRFC India Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.
Financing Partnerships: Financing partnerships bridge the gap between customers and power institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.
Growth in the Railway Sector: The company is well-positioned in the railway sector to deliver benefits to IRFC India. This dominant sector increases demand and prices for IRFC India.
Highly Volatile: Prices are highly volatile, leading to significant price changes that substantially affect IRFC India Company’s stock price. Investors must review the market structure before investing in IRFC India shares.

Conclusion

In summary, Indian Railway Finance Corporation Ltd’s share price experienced significant intraday pressure over the past few days. The stock’s 4.49% decline on the day was sharper than both its sector and the broader market indices. The decline came as trade-war worries resurfaced, following fresh uncertainty over US tariff policies, which decreased global risk appetite. The fall in share prices came as investors chose to book profits following a sharp rally, even though interest in railway stocks had risen due to recent fare increases and expectations for the upcoming Union Budget.

FAQs

What are the key reasons behind the IRFC share price fall?

Ans. There are several reasons for the decline in the IRFC stock price, including market weakness, relative weakness compared to market indices, technical weakness, profit-taking following rallies, and a decline in market confidence. Some market analysts point to relatively low domestic mutual fund holdings and valuation concerns, suggesting lower confidence among certain investor groups. IRFC’s inability to hold key resistance levels and its trading below key moving averages have led to technical selling.

What is the IRFC share price target?

Ans. The IRFC share price target is 112.45. The consensus estimate represents an upside of 4.50% from the last price of ₹109.57. According to Wall Street analysts, the average 1-year price target for IRFC India is ₹120.12, with a low forecast of ₹100.80 and a high forecast of ₹115.50.

What are the factors that affect the IRFC shares?

Ans. According to analysts, IRFC’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in IRFC India. There are several factors to consider before investing in IRFC India Company shares. The company is well-positioned in the railway sector to deliver benefits to IRFC India. This dominant sector increases demand and prices for IRFC India.

Should investors buy IRFC shares or not?

Ans. Analysis of order flow indicates that institutional investors have been actively trading Indian Railway Finance Corporation shares. The fact that the stock has high traded volume, high delivery, and occasional intraday volatility suggests that the trading environment is mixed but closely watched. Although the stock has experienced price fluctuations due to profit-taking and sector rotation, the long-term moving averages suggest that investors should exercise caution at current levels.