L&T to Exit Hyderabad Metro, Telangana Government to Take Over by FY26-End

30 Sep 2025 , 04:18 PM

Larsen & Toubro (L&T) on Friday announced that the disinvestment of its stake in the Hyderabad Metro project is expected to be completed by the end of the current fiscal, FY26, according to a filing with the BSE.

The company said that the Telangana government will take over the Hyderabad Metro SPV, refinancing the existing debt and acquiring L&T’s equity in L&T Metro Rail (Hyderabad) Ltd at mutually agreed values. An in-principle understanding has been reached between the two parties.

Official sources stated on Thursday that the Telangana government has agreed to acquire Phase-I of the Hyderabad Metro Rail project, paying ₹2,000 crore for L&T’s equity in the concessionaire. The state will also assume the company’s existing debt of ₹13,000 crore. L&T currently holds approximately 90% equity in the project.

Last month, L&T had expressed its intention to divest its stake in the 70 km Metro Rail project to either the state or central government via a new Special Purpose Vehicle (SPV), citing operational challenges and accumulated losses.

The disinvestment marks a major step in Telangana’s metro modernisation plans, while allowing L&T to streamline its infrastructure portfolio and focus on other strategic projects.