Engineering and construction major on Wednesday said it has signed an agreement to divest its entire stake in L&T Metro Rail (Hyderabad) to Hyderabad Metro Rail for ₹1,461.47 crore, marking its exit from the urban metro rail project.
The company informed stock exchanges that it executed a share purchase agreement on April 29, 2026, for the sale of its full shareholding in the subsidiary. Upon completion of the transaction, expected by June 30, 2026, L&T Metro Rail will cease to be a subsidiary of L&T.
LTMRHL contributed a relatively small portion to L&T’s consolidated financials, accounting for 0.43 per cent of revenue and 0.83 per cent of net worth in FY25, with revenue of ₹1,100.13 crore and net worth of ₹807.49 crore.
The buyer, Hyderabad Metro Rail, is a Telangana government-owned entity.
As part of the deal, the buyer plans to refinance the existing debt of LTMRHL. This will lead to the release of corporate guarantees and letters of comfort issued by L&T for the project’s borrowings, easing the parent company’s contingent liabilities.
The divestment aligns with L&T’s broader strategy to monetise non-core assets and recycle capital into core engineering, procurement and construction (EPC) and technology-driven businesses. The Hyderabad Metro project, one of India’s largest public-private partnership metro ventures, has faced financial challenges in recent years due to lower-than-expected ridership and high debt levels.