L&T Divests Entire Stake in Hyderabad Metro Rail for ₹1,461.47 Cr

Larsen & Toubro Ltd (L&T) has executed a Share Purchase Agreement to sell its entire shareholding in L&T Metro Rail (Hyderabad) Limited (LTMRHL), a subsidiary, to Hyderabad Metro Rail Limited, a Government of Telangana Enterprise. The transaction is valued at ₹1,461.47 crores and is expected to be completed by June 30, 2026. Upon closing, LTMRHL will no longer be an L&T subsidiary. For the financial year ended March 31, 2025, LTMRHL contributed 0.43% to L&T's consolidated revenue and 0.83% to its consolidated net worth. This is not a related party transaction. A significant implication is that upon closing, Hyderabad Metro Rail Limited will refinance LTMRHL's existing debt, leading to the release of L&T's corporate guarantee and letter of comfort related to that debt.