L&T shares decline over 1%; latest developments you need to know

At around 10:37 am, the stock was trading 0.65% lower at ₹3,705.30 per equity share.

The decline in share price could be attributed to news reports that BofA Securities has said that the stock's recent outperformance leaves little upside potential despite the positive development of exiting the loss-making Hyderabad metro project.

On Friday, September 26, L&T said that the disinvestment of its stake in the Hyderabad metro project will be completed by the end of the current financial year.

"We expect the divestment to get completed by the end of the current fiscal year, FY26," L&T said in a filing to BSE.

The company said that the Telangana government will take over the Hyderabad Metro SPV by refinancing the current debt and acquiring equity of L&T Metro Rail (Hyderabad) Ltd at the agreed-upon values. An in-principle understanding has been reached between the two parties on the same matter.

According to official sources, as reported by PTI, the Telangana government agreed on Thursday to take over Phase I of the Hyderabad Metro Rail project from the L&T Group by paying ₹2,000 crore for the equity in the concessionaire, L&T Metro Rail Hyderabad Ltd.

It was agreed that the state government would also take over the company's debt of ₹13,000 crore, they had said. L&T has about 90% equity in the project.

Last month, the infra major expressed its desire to offload its stake in the Metro Rail project (about 70 km) to either the state or central government through a new Special Purpose Vehicle (SPV), citing operational and accumulated losses.

L&T stock performance

The shares gained 0.2% over the week and 3.5% over the month. The scrip has surged 7.8% over a period of six months.

On a year-to-date (YTD) basis, the stock has advanced 2.80%.

While the scrip reached a 52-week low of ₹2,965.30 on April 7, 2025, it touched a year’s high of ₹3,963.50 per equity share on December 10, 2024.

L&T has a total market capitalisation of ₹5.10 lakh crore, as of September 29, 2025, according to data on the NSE.

L&T Q1 results

The company reported a 30% year-on-year (YoY) increase in its net profit to ₹3,617 crore in the first quarter of FY26, compared to ₹2,786 crore in the corresponding period of the previous fiscal.

Its revenue from operations grew by 15% YoY to ₹63,679 crore during the quarter under review, as against ₹55,120 crore in Q1FY25.