Larsen & Toubro Limited has informed the Exchange regarding a press release dated September 26, 2025, titled "Press note by Government of Telangana regarding takeover of the L&T Metro Rail project ".
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Larsen & Toubro has informed stock exchanges that it has reached an in-principle understanding with the Government of Telangana (GOT) for the takeover of its Hyderabad Metro Rail SPV (L&T Metro Rail Hyderabad Limited). Under the deal, the state government will refinance the project's existing debt and acquire L&T's equity in the SPV at agreed values. L&T expects the divestment to be completed by the end of FY26 (March 2026). The company will make further disclosures under SEBI LODR Regulations at the appropriate time. L&T had been struggling with the financial burden of the Hyderabad Metro project for years, and this exit will allow it to shed a long-pending liability.
This is a positive development for L&T shareholders as it removes a financially stressed asset from the books and frees up capital for the company's core engineering and construction businesses. The deal should improve return ratios and reduce contingent liabilities, though the exact financial impact will depend on the agreed equity sale value and debt refinancing terms.