Larsen & Toubro (L&T) extends Hyderabad Metro stake sale timeline to 31 December 2026

Hyderabad, India (Rail & Metro Today): Larsen & Toubro (L&T) has extended the estimated completion date for the sale of its entire stake in L&T Metro Rail (Hyderabad) Ltd (LTMRHL) to December 31, 2026.

The company had entered into an agreement with Hyderabad Metro Rail Ltd, a Telangana government enterprise, to divest its entire stake in LTMRHL for ₹1,461.47 crore. The latest extension was disclosed by L&T in a regulatory filing with the BSE on Wednesday.

Transaction Timeline Extended Again

According to L&T, the estimated completion date for the transaction has been revised to December 31, 2026, following earlier revisions to the expected closing timeline.

In April 2026, L&T had indicated that the divestment was expected to be completed by June 30, 2026. The company subsequently revised the estimated completion date to September 30, 2026, before announcing the latest extension to December 31.

L&T said the revision follows its earlier disclosures dated April 29 and July 1, 2026.

L&T Cites Challenges at Hyderabad Metro

L&T Metro Rail (Hyderabad) Ltd has faced a combination of structural, financial and regulatory challenges during the operation of the Hyderabad Metro project.

L&T had previously expressed its intention to divest its stake of more than 90% in the Hyderabad Metro project to either the state or central government through a new special purpose vehicle. The company had cited operational and accumulated losses associated with the project.

The proposed transaction with Hyderabad Metro Rail Ltd is intended to facilitate the transfer of L&T's entire stake in LTMRHL for the agreed consideration of ₹1,461.47 crore.

Financial Assistance Remains a Key Issue

In a communication to the Ministry of Housing and Urban Affairs (MoHUA), L&T Metro Rail had stated that the Telangana government had not provided the expected financial assistance despite repeated follow-ups.

According to the company's communication, the delay in receiving the anticipated support had further aggravated the financial pressure on the concessionaire and made the situation increasingly difficult to manage.

The Hyderabad Metro project has therefore remained subject to financial and operational pressures, while the proposed divestment has progressed through discussions between L&T and the Telangana government enterprise.

The latest extension gives the parties additional time to complete the transaction. The revised estimated completion date is now December 31, 2026, subject to fulfilment of the applicable conditions and completion requirements.