IRFC gains on inking Rs 12,842 crore loan pact with HURL for debt refinancing

The transaction marks one of IRFC?s largest refinancing initiatives and aligns with its strategic expansion beyond rail financing under its ?IRFC 2.0? vision.

The agreement was signed in New Delhi in the presence of senior officials from both organisations, the company said in a statement.

Manoj Kumar Dubey, chairman & managing director (MD), IRFC, said: ?IRFC is actively expanding its footprint by supporting critical infrastructure sectors that have strong linkages with the railways. This refinancing transaction with HURL reflects our whole-of-government approach, where we bring cost-effective, long-term financing solutions to strategically important sectors such as fertilizers. By enabling financial efficiency, we are also contributing to agricultural sustainability while strengthening logistics with railways at the core.?

The refinancing is expected to benefit Hindustan Urvarak and Rasayan Limited through competitive borrowing costs and an optimised repayment structure aligned with its cash flows, improving financial flexibility and debt servicing efficiency while freeing up resources for growth.

The project also has strong linkages with the railway ecosystem, with HURL?s plants integrated into rail infrastructure and fertilizer movement coordinated with Indian Railways, supported by streamlined freight payment systems.

Established in 1986 as the financing arm of the Ministry of Railways, IRFC has played a key role in funding India?s rail infrastructure and is now expanding into diversified infrastructure segments, including power, mining, logistics and ports, while maintaining a zero-NPA record.

HURL, backed by PSUs such as NTPC Limited, Coal India and Indian Oil Corporation, operates fertilizer plants at Gorakhpur, Sindri and Barauni, contributing to India?s domestic urea production.

The deal reinforces IRFC?s role as a key financing partner in large-scale infrastructure and multi-stakeholder projects.

Indian Railway Finance Corp.'s principal business is to borrow funds from the financial markets to finance. The Government of India held an 86.36% stake in the company as of 31 December 2025. The company?s standalone net profit jumped 10.5% to Rs 1,802.19 crore despite 0.7% fall in net sales to Rs 6,719.23 crore in Q3 FY26 over Q3 FY25.

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