Larsen & Toubro to sell Hyderabad Metro stake for ₹1,461 crore; why the company is exiting the project

The development marks the company's exit from the urban metro rail project.

L&T said in an exchange filing that it has "executed a share purchase agreement with Hyderabad Metro Rail Limited, a Government of Telangana enterprise, for disposal of its entire shareholding in L&T Metro Rail (Hyderabad) Ltd, a subsidiary of the company, for a consideration of ₹1,461.47 crore."

Details

Upon the transaction likely being completed by the end of June, L&T Metro Rail (Hyderabad) Ltd (LTMRHL) would cease to be a subsidiary of the company, the filing said.

Upon closing of the transaction, Hyderabad Metro Rail Limited proposes to refinance LTMRHL's existing debt. Consequently, the Corporate Guarantee and Letter of Comfort issued by the Company in respect of such debt shall be released," the filing said.

Background

Larsen and Toubro had earlier expressed its desire to offload its over 90% stake in the L&T Hyderabad Metro Rail project to either the state or the central government through a new special purpose vehicle, citing operational losses and accumulated losses.

In a letter addressed to the Ministry of Housing and Urban Affairs (MoHUA), L&T Metro Rail said the Telangana government, despite repeated follow-ups, had not provided the expected financial assistance, and the delay was further aggravating the financial duress of the concessionaire and making the situation necessarily difficult to manage.

The company had said it faced several structural, financial, and regulatory challenges, resulting in substantial cost and time overruns due to delays on account of various reasons beyond the control of the concessionaire, viz., property acquisition, right of way, changes in alignment, utility shifting, etc.

L&T: Recent updates

In late April 2026, Larsen & Toubro (L&T) announced its foray into the industrial electronics manufacturing space, with the beginning of operations at its Coimbatore campus in Tamil Nadu.

The new business vertical -- L&T Electronic Products & Systems (LTEPS) -- will be headquartered in Bengaluru, while manufacturing will be carried out in Coimbatore.

To begin with, two manufacturing lines have been commissioned, offering electronics manufacturing services to both domestic and overseas clients, L&T said in a stock exchange filing.

"With LTEPS, we are bolstering the nation's electronics manufacturing ecosystem while expanding our presence across high-growth, innovation-driven domains," L&T Chairman & Managing Director S N Subrahmanyan said.

LTEPS will extend the capability to the development and manufacture of industrial electronic products and systems across several key domains, including power electronics, mobility, industrial robotics and automation, communication platforms, and electronics systems design and manufacturing.

It will adopt a blended approach of in-house R&D, technology partnerships, and advanced testing infrastructure to deliver market-ready solutions.

Data centre capacity update

In February 2026, L&T said it plans to commission 18 MW of data centre capacity by March-end, taking its total operational capacity to 32 MW by the end of the current fiscal.

The total capital expenditure for the data centre stands at around ₹1,000 crore.

In the semiconductor business, L&T is focusing on design-led chips and engaging with multiple customers, with most spending being expensed through the profit and loss account, the company said during the Q3 earnings conference call.

As far as the electrolyser business is concerned, the company has developed a fully indigenous 4 MW stack and is upgrading it to 8-10 MW, expecting significant orders in the near term.

"As of now, we have almost 32 MW of capacity in our data centre, out of which 14 megawatts are up and running; another 18 megawatts will get commissioned by the end of this fiscal year," a company official said during the conference call.