Larsen & Toubro Divests Entire Stake in Hyderabad Metro Rail for ₹1,461 Crore

Engineering and infrastructure giant Larsen & Toubro (L&T) Limited has officially announced the disposal of its entire shareholding in L&T Metro Rail (Hyderabad) Limited (LTMRHL). The company executed a Share Purchase Agreement on April 29, 2026 with Hyderabad Metro Rail Limited, an enterprise under the Government of Telangana.

The move marks a significant shift in L&T's infrastructure portfolio as it exits the specialized subsidiary responsible for the Hyderabad Metro operations.

Key Transaction Details

Total Consideration: ₹1,461.47 crores (subject to customary closing adjustments).

Asset Disposed: 741,29,99,999 equity shares, representing the company's entire stake.

The Buyer: Hyderabad Metro Rail Limited (Government of Telangana Enterprise).

Expected Completion: The divestment process is estimated to conclude by June 30, 2026.

Impact on L&T's Financials

According to the regulatory filing, LTMRHL contributed a relatively small portion to L&T's massive consolidated financials for the year ended March 31, 2025:

Revenue Contribution: ₹1,100.13 crores (0.43% of consolidated revenue).

Net Worth Contribution: ₹807.49 crores (0.83% of consolidated net worth).

A critical component of this transaction involves the restructuring of LTMRHL's existing liabilities. Upon the closing of the sale, Hyderabad Metro Rail Limited intends to refinance the subsidiary's current debt.

As a result, the Corporate Guarantees and Letters of Comfort previously issued by Larsen & Toubro in respect of this debt will be released, effectively de-risking the parent company's balance sheet from the metro project's long-term financial obligations.

Shares of Larsen & Toubro Limited was last trading in BSE at Rs. 4095.75 as compared to the previous close of Rs. 4037.05. The total number of shares traded during the day was 220062 in over 10012 trades.

The stock hit an intraday high of Rs. 4125.00 and intraday low of 4055.60. The net turnover during the day was Rs. 901650668.00.

Source : Equity Bulls

Keywords

LarsenandToubro INE018A01030 LandT StakeSale HyderabadMetroRail