Shares of (IRFC) gained 4% to the day’s high of ₹102 apiece in Monday’s trade, May 25, after the company said it had signed a ₹13,527 crore term loan agreement with L&T Metro Rail Hyderabad (L&TMRHL) to refinance the debt obligations of the Hyderabad Metro Rail project.
The refinancing comes after the Government of Telangana took full control of L&T Metro Rail Hyderabad from Larsen & Toubro, turning the metro system into a key public transport asset owned by the state and providing a better financial base for expanding Hyderabad’s metro network.
The company said the facility will refinance existing debt obligations, including non-convertible (NCDs), commercial papers, and term loans, enabling an orderly exit for existing lenders while significantly improving the project’s long-term financial sustainability.
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.
Hyderabad Metro Rail Phase-I, spanning 69.2 kilometres across three corridors with 57 stations, is among the world’s largest metro rail projects developed under the public-private partnership (PPP) model and serves as a critical urban transport backbone for Hyderabad.
According to the company, the financing support marks a significant step in strengthening Hyderabad’s urban mobility infrastructure. The existing Hyderabad Metro network, which currently caters to over 5 lakh passenger journeys daily, has emerged as a critical pillar of sustainable public transportation in the city.
Building on this strong ridership base, the proposed expansion will enable the Government of Telangana to extend seamless, efficient, and environmentally sustainable metro connectivity to emerging growth corridors while further enhancing carrying capacity and improving last-mile connectivity across the metropolitan region.
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. The transaction also establishes a replicable financing framework for urban transit systems across the country as India accelerates investment in sustainable mobility and integrated urban infrastructure.
“For IRFC, the agreement marks another significant step in the calibrated diversification of its financing portfolio beyond conventional railway assets into high-impact public utility infrastructure with strong national development relevance,” the company said in its regulatory filing.
IRFC share price history
The company’s shares have struggled to regain momentum on Dalal Street after hitting a record high of ₹229 apiece in July 2024 and have since lost nearly 56% of their value. Although the stock attempted multiple recoveries along the way, those rebounds remained short-lived.
The prolonged weakness in the counter led the stock to deliver a negative return of 17% in 2025, ending its three-year streak of positive annual returns. The selling pressure has continued in the current year as well, with the stock declining another 20% so far.
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