Indian Railway Finance Corporation Ltd. has signed a term loan agreement worth ₹13,527 crore with L&T Metro Rail (Hyderabad) Limited to refinance the debt obligations of the Hyderabad Metro Rail project. This transaction marks a significant development in urban transportation financing, reflecting the corporation's evolution into a diversified infrastructure financing institution. The loan agreement was signed in the presence of IRFC CMD & CEO Manoj Kumar Dubey and Telangana Chief Secretary K. Ramakrishna Rao, underscoring the strategic importance of the deal for strengthening urban mobility infrastructure.

Key Deal Parameters

The refinancing arrangement is structured to support the long-term financial sustainability of the metro network. The following table outlines the key parameters of the deal:

Supporting Urban Transportation Infrastructure

The facility will refinance existing debt obligations, including non-convertible debentures (NCDs), commercial papers, and term loans. By replacing higher-cost debt with competitively priced long-term rupee financing, the arrangement is designed to ease the long-term financial obligations associated with operating and maintaining a large metropolitan rail network. The transaction follows the transfer of 100 per cent ownership of L&TMRHL from Larsen & Toubro Limited to the Government of Telangana through Hyderabad Metro Rail Limited (HMRL).

Hyderabad Metro Rail Phase-I spans 69.2 kilometres across three corridors with 57 stations. The network currently caters to over 5 lakh passenger journeys daily. The refinancing is expected to materially strengthen the project’s financial flexibility, enabling the Government of Telangana to accelerate the planned expansion of Hyderabad’s metro network, including new corridors and enhanced connectivity.

Indian Railway Finance Corporation Limited has reported its audited financial results for the quarter and year ended March 31, 2026. The company recorded a 7.80% increase in annual net profit, which rose to ₹7,009.17 crore from ₹6,502.00 crore in the previous year. For the fourth quarter, the standalone net profit stood at ₹1,684.31 crore, compared to ₹1,681.87 crore in the corresponding period of the previous year.

Financial Performance

The total revenue from operations for the full year grew to ₹27,284.15 crore, up from ₹27,152.14 crore in FY25. In Q4 FY26, revenue from operations increased to ₹7,335.75 crore from ₹6,722.83 crore in the year-ago quarter. The company's net interest margin improved to 1.50% during the year, reflecting the positive impact of its diversification strategy. Assets under management (AUM) reached a record high of approximately ₹4.85 lakh crore, while total assets crossed the ₹5 lakh crore milestone for the first time.

Operational Highlights

During FY26, IRFC sanctioned projects worth ₹72,949 crore and disbursed approximately ₹35,067 crore. The company secured bids worth around ₹56,251 crore, including a Rs 9,821 crore refinancing facility for Dedicated Freight Corridor Corporation of India Limited (DFCCIL) and a Rs 12,842 crore refinancing deal for Hindustan Urvarak & Rasayan Limited (HURL). The company maintained a zero Non-Performing Asset (NPA) status and a net worth of ₹56,748.76 crore, the highest-ever level. The Board of Directors approved the financial results at its meeting held on May 14, 2026.