HYDERABAD (Metro Rail News): Larsen & Toubro has pushed back the deadline for selling its entire stake in L&T Metro Rail (Hyderabad) Ltd (LTMRHL) to 3 December 2026. The transaction, valued at ₹1,461.47 crore, has already missed two earlier completion targets.
L&T disclosed the revised timeline in a regulatory filing on Wednesday, following earlier updates in April and July.
Third deadline revision for Hyderabad Metro exit
L&T had initially expected to complete the divestment by June 30, 2026. The deadline was later moved to September 30, and has now been extended by another three months.
The company has agreed to sell its entire holding in LTMRHL to Hyderabad Metro Rail Ltd, a Telangana government enterprise, for ₹1,461.47 crore.
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L&T said the estimated completion date has been revised to December 31, 2026, without detailing the specific reason for the latest extension.
Hyderabad Metro stake sale timeline
- April 2026: L&T targeted June 30 for completion.
- July 2026: Completion target revised to September 30.
- October 1, 2026: New estimated completion date set for December 31.
L&T has cited financial pressure
L&T has been seeking an exit from the Hyderabad Metro concession for some time. The company holds more than 90% of the project entity and has previously cited accumulated losses and operational difficulties.
In a communication to the Ministry of Housing and Urban Affairs (MoHUA), L&T Metro Rail had raised concerns over the financial position of the operator.
The company said it had not received the expected financial assistance from the Telangana government despite repeated follow-ups. According to L&T, the delay in support had increased financial pressure on the concessionaire.
Project faced cost and time overruns
L&T has attributed the financial strain to several structural, regulatory and project-related issues. The company had pointed to delays and additional costs arising from:
- Land and property acquisition
- Right-of-way issues
- Changes in alignment
- Utility shifting
- Other factors outside the concessionaire’s control
These issues contributed to cost and schedule overruns during the development of the Hyderabad Metro project. L&T had earlier sought a mechanism through which its stake could be transferred to the state or central government, potentially through a new special purpose vehicle.
Transaction still awaits completion
The latest extension keeps L&T’s proposed exit from Hyderabad Metro pending until the end of 2026. The ₹1,461.47-crore transaction will transfer L&T’s interest to the Telangana government-owned entity once the required conditions for completion are met.
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