Reliance Infrastructure gets NCLAT stay, rating upgrade 2025

NCLAT stays insolvency proceedings; next hearing on August 27

The National Company Law Appellate Tribunal (NCLAT) has stayed insolvency proceedings against Reliance Infrastructure after the company told the appellate body it had fully paid its dues, including interest. The matter is listed for hearing on August 27. The insolvency case had been triggered by a petition filed through IDBI Trusteeship Services.

The legal reprieve is a key development for a company that has been working through multiple legacy disputes and lender settlements. It also comes at a time when Reliance Infrastructure has been highlighting debt reduction and improved liquidity in regulatory filings.

Dues of ₹92.68 crore cited as cleared

As part of the NCLAT proceedings, Reliance Infrastructure claimed it had cleared outstanding dues of ₹92.68 crore to Dhursar Solar Power Pvt Ltd. The appellate tribunal accepted the company’s submission at this stage and suspended the insolvency process.

While the NCLAT stay does not decide the merits of the insolvency petition, it removes an immediate overhang until the next hearing. The case will be watched closely because admission of insolvency proceedings can constrain a company’s financing flexibility and vendor confidence.

India Ratings upgrades bank facilities to IND B/Stable

India Ratings and Research (Ind-Ra) upgraded Reliance Infrastructure’s credit rating on its existing non-fund-based working capital limits from IND D to IND B/Stable/IND A4. The company also said Ind-Ra withdrew ratings assigned to earlier proposed fund-based and non-fund-based limits that were never raised or availed.

Reliance Infrastructure described the move as a three-notch improvement after six years at the IND D level. Ind-Ra cited the company’s deleveraging and noted that Reliance Infrastructure had reached net zero debt with banks and financial institutions.

What the rating note flagged on liquidity and repayments

Ind-Ra said the upgrade reflects timely servicing of standalone debt obligations for three consecutive months ended June 30, 2025. The rating note also referenced one-time settlement agreements tied to guaranteed debt of subsidiaries, including a final payment by JR Toll Road Private Limited.

It also mentioned that repayments were supported by a long-term capital infusion through warrant issuance of ₹3,010 crore, of which ₹750 crore was received in FY25 and ₹225 crore in 1QFY26. Ind-Ra further noted the company realised around ₹2,800 crore through enforcement of securities and settlement of legacy debts, and used the inflows to cut standalone debt.

JR Toll Road settles Yes Bank dues; guarantor obligation discharged

Reliance Infrastructure disclosed that its wholly-owned subsidiary, JR Toll Road Private Limited (JRTR), paid ₹273 crore to Yes Bank under an addendum to a settlement agreement. The company said the amount includes interest and represents the entire outstanding debt obligation of JRTR to the bank.

The settlement also resulted in full discharge of Reliance Infrastructure’s obligation as corporate guarantor for the JRTR loan. Ind-Ra’s note referenced a final payment date of June 23, 2025 for JRTR to its lender.

Bombay High Court order in Mumbai Metro One arbitration dispute

In a separate development, the Bombay High Court directed the Mumbai Metropolitan Region Development Authority (MMRDA) to deposit ₹1,169 crore with the court by July 15, 2025, related to a long-running arbitration dispute over Mumbai Metro One’s Versova-Andheri-Ghatkopar corridor.

The arbitration award of ₹992 crore was granted to Mumbai Metro One Pvt Ltd (MMOPL) in August 2023 by a three-member tribunal to settle cost-related disputes with MMRDA. The court dismissed MMRDA’s challenge under Section 34 of the Arbitration and Conciliation Act, 1996, and ordered payment with applicable interest. Reliance Infrastructure told the BSE that the inflow would be used to reduce MMOPL’s debt burden.

MMOPL’s debt settlement and earlier insolvency pleas

MMOPL has faced lender pressure in recent years. SBI and IDBI Bank had filed insolvency pleas against MMOPL over unpaid dues of ₹416 crore and ₹133.37 crore, respectively, as per the details cited.

Reliance Infrastructure has said the NCLT Mumbai disposed of the insolvency cases after a one-time settlement (OTS) framework was agreed. It also disclosed that MMOPL entered into a debt settlement agreement with lenders in March 2024, agreeing to pay ₹1,700 crore to settle its entire debt, and that an initial payment of ₹171 crore was made by MMRDA and MMOPL to lenders. From April 2023 to June 2024, MMOPL paid interest totalling more than ₹225 crore to lenders.

Capital-raising plans: ₹9,000 crore each for Reliance Infra and Reliance Power

Alongside the legal and credit developments, the article notes that Reliance Infrastructure and its subsidiary Reliance Power plan to raise ₹9,000 crore each through a mix of equity and debt routes, following board approvals. The mention of parallel fundraising plans is significant given the group’s focus on liquidity and deleveraging.

The eventual structure, timing, and pricing of any such fundraise will be important for investors, particularly in assessing dilution, cost of capital, and the use of proceeds.

Stock moves and key financial indicators cited

Following the Bombay High Court development, Reliance Infrastructure’s shares rose 3.53% to ₹404.40 on Tuesday before easing to ₹400.00 on Wednesday, according to the report. The shares were also described as having surged over 100% since March 2025, amid optimism around debt resolution steps.

Separately, the article cites Reliance Infrastructure’s Q4FY25 metrics: standalone net debt of zero to banks and financial institutions after a ₹3,300 crore reduction during the fiscal year, consolidated profit of ₹4,387 crore versus a loss of ₹3,298 crore in the previous quarter, adjusted EBITDA of ₹8,876 crore, and net worth of ₹14,287 crore as of March 31, 2025. Another company update cited standalone external debt reduction from ₹3,831 crore to ₹475 crore, and stated net worth would stand at ₹9,041 crore.

Key facts at a glance

Why the cluster of developments matters

Taken together, the NCLAT stay, the Ind-Ra upgrade, and the subsidiary-level settlements point to a period where Reliance Infrastructure is trying to convert legal resolutions and cash inflows into balance-sheet repair. A move from a default-grade rating to IND B can influence how counterparties view payment risk, even if financing costs remain elevated compared with higher-rated issuers.

The Bombay High Court order on the metro arbitration and the OTS-related disclosures around MMOPL also matter because metro assets have historically been a stress point in the group’s capital structure. Any cash that is formally available for debt reduction, as stated by the company, can reduce refinancing pressure, subject to the final legal process and fund utilisation.

Conclusion

Reliance Infrastructure is currently navigating multiple, parallel tracks: insolvency litigation at the appellate level, credit rating re-assessment, subsidiary settlements, and monetisation or arbitration-linked inflows. The next immediate marker is the August 27 NCLAT hearing, while the metro dispute timeline includes the July 15, 2025 court deposit direction. Investors will likely track how quickly these steps translate into measurable debt reduction and whether the proposed ₹9,000 crore fundraising plans progress from board approvals to execution.