State-owned Indian Railway Finance Corporation (IRFC) has finalized a landmark ₹13,527 crore refinancing deal for the Hyderabad Metro Rail project, offering a 20-year tenure with zero processing fees to optimize the project's debt structure and reduce interest burdens. According to reports, under the agreement, IRFC will provide a term loan of ₹13,527 crore to refinance the metro project's debt obligations. As reported by IRFC Chairman and Managing Director Manoj Kumar Dubey, IRFC will disburse ₹13,500 crore to Hyderabad Metro by June this year. This marks the first metro project financed by IRFC, with the Railway Ministry PSU leveraging its low cost of funds—derived from its sovereign-backed status to capture market share in the high-growth urban mobility sector. The deal signals a positive outlook for infrastructure financing entities, suggesting that large-scale brownfield projects are successfully finding cheaper debt alternatives. Shares of both IRFC and L&T are trading with gains of around 2.5% on Monday following the announcement.
The ₹13,527 crore refinancing deal represents a strategic pivot for IRFC, moving beyond standard rolling stock leasing into major urban mass rapid transit system (MRTS) financing. As per latest reports, this move reduces concentration risk associated with the Ministry of Railways' direct leasing while supporting the National Infrastructure Pipeline. The 20-year tenure aligns long-term infrastructure cash flows with debt repayment schedules, providing predictable cash flows for two decades. The zero-processing fee structure significantly lowers the immediate financial entry barrier for the borrower, ensuring steady interest income over 20 years which outweighs the one-time fee revenue. The Indian urban transit sector is undergoing a massive shift with over 15 cities currently expanding their metro networks, positioning IRFC as a key competitor to domestic commercial banks and international developmental agencies like JICA. The facility will refinance existing debt obligations including non-convertible debentures, commercial papers and term loans, enabling an orderly exit for existing lenders while significantly improving the project's long-term financial sustainability.
The Hyderabad Metro Phase I spans 69.2 km across three corridors with 57 stations and currently serves over 5 lakh passenger journeys daily, making it one of the world's largest metro projects developed under the PPP model. The loan agreement was signed in the presence of IRFC CMD and CEO Manoj Kumar Dubey and Telangana Chief Secretary K. Ramakrishna Rao. The deal follows the transfer of 100% ownership of L&T Metro Rail (Hyderabad) Ltd from Larsen and Toubro to the Government of Telangana through Hyderabad Metro Rail Limited. Structured over a 20-year tenure with quarterly repayments, the facility replaces higher-cost debt with competitively priced long-term rupee financing. Notably, it carries no processing fees, commitment charges or prepayment penalties. According to Telangana Chief Secretary K. Ramakrishna Rao, Hyderabad Metro's earnings before interest, taxes, depreciation, and amortization (EBITDA) are positive, with officials expecting this agreement to help the project report a profit next year.
Several companies reported their quarterly and annual financial results for the January-March period. TVS Supply Chain Solutions delivered strong performance with consolidated revenue from operations increasing 21.3% to ₹3,032 crore from ₹2,499 crore in Q4 FY25. The company achieved full-year PAT of ₹117 crore compared to a loss of ₹9.6 crore in FY25, with revenue from operations at ₹11,003 crore in FY26 versus ₹9,996 crore in the previous year. Global Health reported net loss of ₹332.36 crore in the year-ago period, while Yatharth Hospital posted consolidated net profit of ₹44.7 crore for Q3 FY26, up 15.43% from ₹38.72 crore year-ago.
The domestic stock market is expected to open lower on Tuesday, May 26, with GIFT NIFTY futures suggesting NIFTY50 will open 34 points lower. In the investment space, HDFC Mutual Fund purchased 10 lakh shares representing 0.37% stake in Global Health at an average price of ₹1,225 per share, taking the transaction value to ₹122.50 crore. Aditya Birla Fashion and Retail reported revenue from operations grew 15.74% to ₹1,990.13 crore in Q4 FY26, marking the highest organic growth in the last 12 quarters. The company's board has also approved a final dividend of ₹8 per share for FY26. In the last 90 days, IRFC reported robust growth in its asset base, reaching nearly ₹5 lakh crore, and has been exploring green bond issuances to fund sustainable railway and transit infrastructure.
