New Delhi, May 25 -- Indian Railways Finance Corporation Ltd (IRFC) announced its highest-ever performance during FY26 after making a historic Rs 13,527 crore refinancing arrangement for the Hyderabad Metro Rail Project. IRFC termed the move towards greater diversification within its infrastructure financing business from the traditional railway industry.
IRFC recorded its best-ever PAT of Rs 7,009.17 crore while its revenue was at an all-time high of Rs 27, 284.15 crore.
The net worth of IRFC was recorded at Rs 56,748.76 crore, while Assets under Management (AUM) stood at Rs 4.85 lakh crore, and total assets were at Rs 5.16 lakh crore. Further, the company retained its NIL NPA position and paid a dividend of Rs 2.10 per share, registering a growth of 31 per cent in FY25. EPS was at Rs 5.36.
IRFC, on Monday, signed a term loan agreement worth Rs 13,527 crore with L&T Metro Rail (Hyderabad) Limited (L&TMRHL) for refinancing the obligations under the Hyderabad Metro Rail project, which is considered to be one of the biggest refinancing exercises in the urban transport space of India. This agreement was executed in the presence of IRFC chairman and managing director Manoj Kumar Dubey and the chief secretary of Telangana, K Ramakrishna Rao.
This refinancing comes in after the transfer of 100 per cent equity stake in L&TMRHL from Larsen & Toubro Limited to the Government of Telangana through HMRL. It means that the metro railway has now become a state-owned public mobility asset.
As per IRFC, this refinancing would help them repay existing obligations, which include non-convertible debentures (NCDs), commercial papers, and term loans and will ensure a smooth exit for exiting creditors as well.
The Hyderabad Metro Rail Project Phase-I extend over 69.2 kilometres and covers three routes and 57 stations, and is one of the world's biggest metro rail projects to be undertaken by public-private partnership (PPP). The network presently serves more than five lakh passengers per day.
CMD of IRFC, Manoj Kumar Dubey, referred to the agreement as a "historic moment" and said that the deal was made "in a very short period of time."
"This is a game-changing agreement," he stated, giving his appreciation to the Telangana government for their coordination and cooperation in the process of concluding this transaction. Special mention was made by him of the Chief Secretary of Telangana, K. Ramakrishna Rao, for his "continued support and guidance."
According to Dubey, the deal marked the changing role of IRFC after it got its Navratna tag and indicated its increasing focus on metro rail funding. "After getting our Navratna tag, we have been asked to extend our scope of work from railway finance to metro rail funding too. Urban transport is very important for a nation like India that is experiencing very rapid urbanisation rates," he said.
Dubey further stated that the refinancing of Hyderabad Metro would contribute to the development of the current metro ecosystem and open new doors for expansion of the metro in Hyderabad, which, according to him, "is one of the biggest growth engines for India's GDP."
Dubey further praised Larsen & Toubro and said the company had made "something of a marvel in Hyderabad" and added that the metro project would be the benchmark in the history of PPP models in India.
The head of IRFC further stressed the importance of such deals, explaining that "we want to establish ourselves as a reliable domestic funding agency, channelling Indian savings into Indian infrastructure,
on Indian terms."
Telangana chief secretary K. Ramakrishna Rao also stated that the Hyderabad metro has become an essential part of the transportation infrastructure in the city, and the need for expansion of the metro is very pressing. "Currently, the Hyderabad metro is moving nearly five lakh passengers per day. But the metro has enormous scope for growth if it is extended and reaches the growth nodes in the western, southern, and northern parts of the city," he explained.
The Telangana government, in cooperation with the central government, is working on the further development of the metro. According to Rao, there have been talks about the Phase-III expansion of the metro. "Centre has made us understand that it is sympathetic towards the Phase-III expansion of the metro," he pointed out.
Speaking of the rapid urbanisation and economic growth of Hyderabad, Rao pointed out that the state's economy, which was at Rs 1.24 lakh crore when Telangana was formed in 2014, has grown to Rs 14 lakh crore. He noted that the city, which is currently among the fastest-growing metropolitan cities in the country, needs world-class transport infrastructure.
"Given the need for making Hyderabad a true global city, the road system, the rail system, the metro system, and even the transportation systems become crucially important," he explained.
Rao went on to elaborate on the integrated transport plan envisaged by him for the city, which includes a mega transport station near the Hyderabad Airport, at which the metro rails, the airport connectivity, the bus services, the RRTS, and the bullet trains will all meet. With regard to the Union government's proposed seven high-speed rail networks across India, Rao stated that three such corridors would start or end in Hyderabad.
Describing the Hyderabad Metro project as one of the "most unique public-private partnership projects" in the country, Rao appreciated L&T's successful execution of the project despite several issues.
"This project has had an uphill history, but despite all the challenges faced, Larsen & Toubro has made an incredible effort to build and manage this project at world-class levels," he said.
In addition, Rao stated that this refinancing deal was just the start of the transformation of Hyderabad's and Telangana's transportation infrastructure. "This is not only a matter of the metro project, but it involves the geography of Hyderabad, its urbanisation, pattern of development, and job concentration in the area," he said.
He further said that the project will be the "hub" from which the transport infrastructure of South India will develop."
Published by HT Digital Content Services with permission from Millennium Post.