Press Release

Press Release

October 07, 2026

MUMBAI METROPOLITAN REGION DEVELOPMENT AUTHORITY
Rating Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
Bank Loan Ratings	0.00	9278.00	ACUITE AA \| Stable \| Reaffirmed	-	RBI
Issuer Rating (IR)	0.00	0.00	ACUITE AA \| Stable \| Reaffirmed	-	-
Total Outstanding	0.00	9278.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuite has reaffirmed its long term issuer rating (IR) of 'ACUITE AA' (read as ACUITE double A) to Mumbai Metropolitan Region Development Authority (MMRDA). The outlook remains 'Stable'.
Further, Acuite has also reaffirmed its long term rating of 'ACUITE AA' (read as ACUITE double A) on the Rs. 9,278.00 Cr. bank loan facilities of Mumbai Metropolitan Region Development Authority (MMRDA). The outlook is 'Stable'.

Rationale for reaffirmation
The rating reaffirmation reflects the strategic importance of MMRDA to Government of Maharashtra as a key statutory authority involved in the planning and infrastructure development of the Mumbai Metropolitan Region. The rating continues to draw comfort from the authority’s strong financial flexibility, resource mobilisation ability and the availability of state/central government guarantees for a majority of its debt. MMRDA also benefits from its diversified revenue sources, including grants from the State Government, stamp duty collections, land sale proceeds and interest income. Additionally, cash deposits of approximately Rs. 5376.76 Cr. as on June 30, 2026, and the availability of a huge land bank strengthens its liquidity position. However, the sharp increase in debt, coupled with relatively slow pace of project execution, remains a key rating constraint. These risks are partly mitigated by the authority’s long operational track record of project execution.

About the Company

Mumbai Metropolitan Region Development Authority (MMRDA) is a statutory authority established under the Mumbai Metropolitan Region Development Authority Act, 1974 for the purpose of planning, coordinating and supervising the proper, orderly and rapid development of the Mumbai Metropolitan Region (MMR). The MMR spreads across 6,328 sq km which consists of 9 municipal corporations namely Greater Mumbai, Thane, Kalyan-Dombivali, Navi Mumbai, Ulhasnagar, Bhiwandi- Nizamapur, Vasai-Virar, Mira-Bhayandar and Panvel; and 9 Municipal Councils viz. Ambarnath, Kulgaon-Badalapur, Matheran, Karjat, Khopoli, Pen, Uran, Alibaug and Palghar, along with more than 1,000 villages in Thane, Raigad and Palghar districts. Further, the authority has a committee of 17 members headed by Minister of Urban development, Government of Maharashtra (GoM), Chairman of MMRDA. The authority has completed sizeable projects in past years such as Mumbai metro (Line 1, 2A and 7), Mumbai Monorail, Eastern freeway, Mumbai Trans Harbour Link, etc and has a pipeline of key projects.

Unsupported Rating

Not Applicable

Analytical Approach

Acuite has considered the standalone financial and business risk profile of MMRDA while arriving at the rating.

Key Rating Drivers

Strengths

Strategic importance to State Government
MMRDA is a strategically important body to the Government of Maharashtra, as it is responsible for planning and infrastructure development across the Mumbai Metropolitan Region. The authority receives government support through grants, loans, revolving funds, subordinate debt and guarantees for project execution. Further, government officials also form a part of MMRDA’s executive committee, reflecting its close administrative linkage with the state government. Maharashtra is India’s leading industrial state; it’s gross state domestic product (GSDP) is expected (at current prices) to be Rs. 54.09 Lakh Cr. for FY2026-27 as against Rs 51.01 Lakh Cr. for FY2025-26 (RE). The fiscal deficit of Maharashtra for FY2026-27 is targeted at 2.8 percent of GSDP against 3.0 percent in FY2025-26 (RE).

Significant land bank parcel, aiding large capital receipts
The authority has a sizeable land bank in Wadala and BKC, spread across 402.07 hectares and valued at around Rs. 90,000–1,00,000 Cr. Further, the state government has allotted an additional 80,000–84,000 acres of land in Thane, Raigad and Palghar, which is expected to be transferred by the end of FY2027. The authority monetises its land through auctions, long-term leases and transfer of development rights to fund various infrastructure projects. MMRDA generated cashflows of ~ Rs. 5,722.60 Cr. in FY2026 (Prov.) (~Rs. 2500 Cr. in FY2025) through monetization of land parcels.

Strong financial flexibility and resource mobilization ability
The regular contributions from the state/central government on a timely basis has led to build up of strong networth which stood at Rs. 44701.50 Cr. on March 31, 2026 (Prov.). The government also infused ~Rs. 3150 Cr in the form of revenue grants in FY2026 (Prov.) (~Rs 2700 Cr in FY2025). Further, as a strategically important arm of the Government of Maharashtra and having a strong historical track record of executions, the authority enjoys financial flexibility in terms of raising funds from financial institutions at favourable rates.

Weaknesses

Significant capex plans elevating the debt levels
The authority is executing several large infrastructure projects across the MMR, which accounts for a capex spend of ~Rs 1.80 lakh crore (Rs. ~41,046.71 Cr. spent till June 30, 2026). These projects are majorly funded through a mix of external debt, grant and internal accruals ranging to ~ Rs 1.40 lakh crore, Rs ~24,000 crore , ~ Rs 20,000 crore respectively. Therefore, with the increasing project execution pipeline, the external debt has climbed up sharply from Rs. 10,570.22 Cr. as on March 31, 2022 to Rs. 41,011.08 Cr. as on June 30, 2026. Debt levels are expected to rise further over the near to medium term due to continued drawdowns for ongoing and upcoming projects.

Project execution risk
Several projects of the authority have faced delays in the past owing to issues such as land acquisition, contractor issues, regulatory hurdles, environmental clearance, relocation, unavailability of sites which have led to significant time and cost overruns in the past. Some of these issues continue to persist and have affected the timely completion of ongoing projects. However, the long track record of project execution by the authority over the past decades mitigates the risk.

Rating Sensitivities

Potential triggers (individual or collective) for an upward rating action:

Timely completion and materialization of projects leading to growth in revenue from operations.
Significant improvement in cashflow position owing to land monetization / grants or capital support from state government.

Potential triggers (individual or collective) for a downward rating action:

Significant or cost overruns in the ongoing projects
Deterioration in the credit profile of Government of Maharashtra (GoM)
Significant increase in borrowings leading to stretch in the liquidity position

Liquidity Position

Strong

The authority has an operational track record of over five decades, which has enabled it to build and maintain healthy cash and bank balances of approximately Rs. 5,376.76 Cr. as on June 30, 2026. Although the ongoing capex programme has resulted in a moderation in cash reserves over the past year, liquidity is expected to remain strong over the medium term, supported by continued inflows in the form of government grants, proceeds from land monetisation, and interest income on surplus funds. While the authority’s operating cashflows remain inadequate to meet its debt servicing obligations, the same is adequately supported by government grants, cash flows from land monetisation, and the huge cash and bank balances. Accordingly, the liquidity profile is expected to remain strong despite the authority's significant funding requirements towards ongoing and proposed infrastructure projects.

Outlook: Stable

Other Factors affecting Rating

None

Key Financials

Particulars	Unit	FY 26 (Provisional)	FY 25 (Actual)
Operating Income	Rs. Cr.	4228.04	4602.66
PAT	Rs. Cr.	282.48	291.43
PAT Margin	(%)	6.68	6.33
Total Debt/Tangible Net Worth	Times	1.04	0.99
PBDIT/Interest	Times	4.08	6.54

Status of non-cooperation with previous CRA (if applicable)

Not Applicable

Any other information

None

Applicable Criteria

• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm
• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Urban Local Bodies : https://www.acuite.in/view-rating-criteria-57.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
07 Oct 2025	Term Loan	Long Term	7622.00	ACUITE AA \| Stable (Assigned)
	Issuer Rating	Long Term	0.00	ACUITE AA \| Stable (Reaffirmed)
	Proposed Long Term Bank Facility	Long Term	1656.00	ACUITE AA \| Stable (Assigned)
01 Aug 2025	Issuer Rating	Long Term	0.00	ACUITE AA \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	Not avl. / Not appl.	Issuer Rating	Unlisted	-	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	0.00	Simple	ACUITE AA \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Long Term Bank Facility	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	1656.00	Simple	ACUITE AA \| Stable \| Reaffirmed
Union Bank of India	Not avl. / Not appl.	Term Loan	Unlisted	RBI	Not avl. / Not appl.	Not avl. / Not appl.	31 Mar 2050	7622.00	Simple	ACUITE AA \| Stable \| Reaffirmed

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Kruti Patel
Analyst - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

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