Larsen & Toubro has entered into an agreement with Hyderabad Metro Rail Limited for the divestment of its complete stake in L&T Metro Rail (Hyderabad) Limited (LTMRHL). The agreement, signed on April 29, marks a strategic step in the company’s efforts to monetise mature infrastructure assets and redeploy capital towards its core engineering and technology-focused businesses.
The Hyderabad Metro Rail project, operated by LTMRHL, is among the largest public-private partnership metro systems globally. Spanning nearly 69 kilometres across three corridors, the network has played a significant role in reshaping urban transportation in the city. Developed and executed by L&T in collaboration with the Government of Telangana, the project has been widely recognised for its scale, engineering execution and contribution to sustainable urban mobility.
The divestment aligns with L&T’s long-term strategy of streamlining its portfolio by exiting development projects and focusing on high-growth segments driven by technology and innovation. The move is expected to strengthen the company’s financial flexibility while supporting future investments in priority business areas.
Following the acquisition, Hyderabad Metro Rail Limited is expected to undertake further expansion of the metro network, reinforcing its role in addressing the mobility needs of a rapidly growing urban population. The planned expansion is also anticipated to enhance connectivity and support continued economic development in the region.
Commenting on the transaction, S N Subrahmanyan, Chairman and Managing Director of L&T, stated that the agreement reflects the company’s focus on delivering long-term value through disciplined capital allocation. He noted that the Hyderabad Metro Rail project stands as a significant example of the company’s capability to execute large-scale infrastructure projects that contribute to urban transformation and improved quality of life.
D K Sen, Advisor to the Chairman and Managing Director for Development Projects, highlighted that the divestment represents an important milestone in the company’s value creation journey. He added that the project demonstrates L&T’s expertise in conceptualising, building and operating complex infrastructure under the public-private partnership framework.
Over the years, the Hyderabad Metro has significantly improved connectivity across key parts of the city, easing congestion and supporting urban growth. Its development has also contributed to economic activity and enhanced accessibility for commuters.
With this transaction, L&T concludes a major chapter in its infrastructure development portfolio while positioning itself for the next phase of growth. The company remains focused on leveraging its engineering capabilities and expanding its presence in technology-led sectors, while continuing to contribute to large-scale infrastructure development in India and global markets.
