IRFC Share Price Gains Over 2% as it Signs ₹13,527 Crore Refinancing Deal with L&T Hyderabad Metro Rail Project

Indian Railway Finance Corporation Ltd. (IRFC) has entered into a significant refinancing agreement worth ₹13,527 crore with L&T Metro Rail (Hyderabad) Limited.  

This move aims to bolster the financial foundation of the Hyderabad Metro Rail project. 

IRFC's Strategic Refinancing Initiative 

As per the exchange filings, on May 25, 2026, IRFC, a Navratna Central Public Sector Enterprise, signed a ₹13,527 crore term loan agreement with L&T Metro Rail (Hyderabad) Limited.  

This agreement is a landmark transaction in India's urban transit sector, reflecting IRFC's evolution into a diversified infrastructure financing institution. The transaction aligns with the Government of India's Viksit Bharat vision. 

The refinancing follows the transfer of 100% ownership of L&TMRHL from Larsen & Toubro Limited to the Government of Telangana.  

This transfer transforms the metro network into a strategic public mobility asset under state ownership, creating a stronger financial foundation for the phased expansion of Hyderabad’s metro ecosystem. 

Enhancing Urban Mobility Infrastructure 

The facility will refinance existing debt obligations, including non-convertible debentures, commercial papers, and term loans.  

This will enable an orderly exit for existing lenders while significantly improving the project's long-term financial sustainability. Hyderabad Metro Rail Phase-I, spanning 69.2 kilometres with 57 stations, is among the world's largest metro rail projects developed under the public-private partnership model. 

Read More: IRFC Share Price Surges; Raises JPY-Equivalent $1.1 Billion Through External Commercial Borrowing! 

Financial Flexibility and Expansion Plans 

Structured over a 20-year tenure with quarterly repayments, the refinancing replaces higher-cost debt with competitively priced long-term rupee financing.  

The facility carries no processing fees, commitment charges, or prepayment penalties, making it an efficient and borrower-friendly refinancing mechanism. 

The transaction is supported by a robust credit enhancement framework, including an unconditional and irrevocable undertaking by the Government of Telangana for servicing all dues payable to IRFC, a state government guarantee, and an RBI-backed direct debit mandate. 

IRFC Share Price Performance 

As of May 25, 2026, at 11:58 AM, IRFC share price on NSE was trading at ₹100.62 up by 2.47% from the previous closing price. 

Conclusion 

IRFC's ₹13,527 crore refinancing deal for the Hyderabad Metro Rail project marks a significant step in strengthening urban mobility infrastructure. The transaction enhances financial flexibility and supports the expansion of Hyderabad's metro network, establishing a replicable financing framework for urban transit systems across India. 

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