Larsen & Toubro (L&T) has announced the complete divestment of its stake in L&T Metro Rail (Hyderabad) Limited for a consideration of ₹1,461.47 crore. The company has entered into a Share Purchase Agreement with Hyderabad Metro Rail Limited, a Government of Telangana enterprise, to transfer its entire shareholding in the metro rail business.
The transaction involves the sale of 741.29 crore equity shares and is expected to be completed by June 30, 2026, subject to customary closing adjustments. Once the deal is finalised, L&T Metro Rail (Hyderabad) Limited will cease to be a subsidiary of L&T, marking the group’s exit from the Hyderabad metro project.
Financially, the metro business contributed a relatively small share to L&T’s consolidated performance. For the financial year ended March 31, 2025, the subsidiary reported revenue of ₹1,100.13 crore, accounting for just 0.43% of L&T’s consolidated revenue, while its net worth stood at ₹807.49 crore, contributing 0.83% to the consolidated net worth.
The buyer, Hyderabad Metro Rail Limited, does not belong to the promoter group of L&T, and the transaction is not classified as a related party deal. The company also clarified that the sale does not fall under any scheme of arrangement or slump sale framework.
Following the completion of the transaction, Hyderabad Metro Rail Limited is expected to refinance the existing debt of the metro entity. This will lead to the release of corporate guarantees and letters of comfort previously extended by L&T in relation to the subsidiary’s borrowings.