Larsen & Toubro Sells Entire Stake in L&T Metro Rail (Hyderabad) for ₹1,461.47 Crore
Larsen & Toubro is divesting its entire stake in L&T Metro Rail (Hyderabad) Limited for ₹1,461.47 crore. The deal is expected to close by June 30, 2026. LTMRHL's revenue was ₹1,100.13 crore and net worth was ₹807.49 crore for FY25.
While the disposal of a subsidiary is a significant corporate action, the financial contribution of LTMRHL to L&T's consolidated revenue and net worth is relatively small (0.43% and 0.83% respectively). Therefore, the immediate financial impact is assessed as medium.
The disposal of a subsidiary for a significant sum, which will no longer be a subsidiary, is generally viewed positively as it allows the company to focus on its core businesses and potentially reduce debt or invest in growth areas. The consideration received is substantial.
Larsen & Toubro Limited (L&T) has executed a Share Purchase Agreement with Hyderabad Metro Rail Limited, a Telangana government enterprise, for the disposal of its entire shareholding in its subsidiary, L&T Metro Rail (Hyderabad) Limited (LTMRHL). The transaction is valued at ₹1,461.47 crore and is expected to be completed by June 30, 2026. Upon closing, LTMRHL will cease to be a subsidiary of L&T.
For the financial year ended March 31, 2025, LTMRHL contributed ₹1,100.13 crore in revenue, representing 0.43% of L&T's consolidated revenue, and had a net worth of ₹807.49 crore, which is 0.83% of the consolidated net worth. The buyer, Hyderabad Metro Rail Limited, is a government enterprise, and the transaction is not considered a related party transaction.
Following the completion of the sale, Hyderabad Metro Rail Limited intends to refinance LTMRHL's existing debt, which will lead to the release of L&T's corporate guarantee and letter of comfort for this debt. The deal was executed on April 29, 2026.
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Larsen & Toubro Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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