IFCI Ltd shares tumbled 10% on Thursday after rallying nearly 36% over the previous five trading sessions, as investors booked profits following a sharp run-up.
With a market capitalisation of ₹22,015 crore, the stock was trading at ₹81.71, after touching an intraday low of ₹80.71. It had closed at ₹90.07 in the previous session.
The stock had climbed from ₹70.53 on June 11 to a high of ₹95.75 on June 17, driven by optimism linked to the proposed NSE IPO.
The rally was largely attributed to IFCI’s indirect exposure to the National Stock Exchange through its subsidiary holdings.
IFCI owns 52.86% of Stock Holding Corporation of India Ltd (SHCIL), while SHCIL holds around 4.4% in the NSE.
Investors have been factoring in the possibility of value unlocking if the NSE proceeds with its long-awaited public issue.
Sentiment also improved following reports that:
- NSE may soon file its Draft Red Herring Prospectus (DRHP).
- SEBI has issued a no-objection certificate for the IPO.
- Regulatory uncertainty surrounding the listing has eased.
Broader enthusiasm around upcoming large IPOs also added to the momentum.
Why the Stock Corrected
Thursday’s decline came after the sharp rally in recent sessions.
Market participants attributed the fall to:
- Profit booking after a 36% rise in five sessions.
- Lack of fresh triggers to sustain the momentum.
- Cooling of sentiment-driven buying.
The recent gains had been largely driven by expectations surrounding the NSE IPO, and the absence of any new developments led to a pullback.
Q4FY26 Performance
IFCI reported higher revenue but weaker profitability during the March quarter.
Q4FY26 numbers
- Revenue: ₹470 crore
- EBITDA: ₹156 crore
- Net profit: ₹34.1 crore
- EPS: ₹0.05
Q4FY25 numbers
- Revenue: ₹414 crore
- EBITDA: ₹493 crore
- Net profit: ₹260 crore
- EPS: ₹0.84
On a year-on-year basis:
- Revenue increased 14%.
- EBITDA declined 68%.
- Net profit fell 87%.
- EPS dropped 94%.
About the Company
IFCI Ltd, a Government of India-owned institution, was established to provide long-term financing to the industrial sector.
The company currently offers:
- Project finance
- Corporate lending
- Infrastructure funding
- Advisory services
Its exposure spans sectors such as:
- Power
- Roads
- Telecom
- Real estate
- Manufacturing
TL;DR:
IFCI shares dropped 10% after surging 36% in five sessions. The rally had been fueled by optimism surrounding the NSE IPO and IFCI’s indirect stake in the exchange through SHCIL. The latest decline is being attributed to profit booking and the absence of fresh triggers.
AI summary:
- IFCI shares fell 10% on Thursday.
- The stock had rallied 36% in the previous five sessions.
- Optimism around the NSE IPO drove the gains.
- IFCI owns 52.86% in SHCIL, which holds about 4.4% in NSE.
- Q4FY26 net profit declined 87% year-on-year.
