Post Exit, L&T Expresses Confidence in Government-Led Expansion of Hyderabad Metro
"Strategic divestment aligns with shift toward core engineering and technology businesses"
SN Subrahmanyan, Chairman and Managing Director of L&T, said the transaction reflects the company’s continued focus on long-term value creation and portfolio optimisation.
Hyderabad: Engineering infra giant Larsen & Toubro has signed an agreement to divest its entire stake in L&T Metro Rail (Hyderabad) Limited (LTMRHL) to Hyderabad Metro Rail Limited, marking a significant shift in ownership of one of India’s largest metro rail projects.
The agreement, signed on April 29, represents a value-driven monetisation of a mature infrastructure asset and is part of L&T’s broader strategy to exit its development projects portfolio and redeploy capital into core engineering and technology-led businesses, the company said in a statement on Thursday.
The Hyderabad Metro, operated by LTMRHL, spans around 69 km across three corridors and is among the world’s largest public-private partnership (PPP) metro rail projects. Developed and executed by L&T in partnership with the Telangana government, the project has played a key role in enhancing urban mobility, connectivity, and economic activity in the city.
Following the acquisition, HMRL plans to expand the metro network, strengthening its footprint in India’s fast-growing urban transit sector.
Commenting on the development, SN Subrahmanyan, Chairman and Managing Director of L&T, said the transaction reflects the company’s continued focus on long-term value creation and portfolio optimisation. He described the Hyderabad Metro as a world-class asset and highlighted L&T’s ability to deliver large-scale infrastructure that transforms urban life.
DK Sen, Advisor to the CMD for Development Projects, said the project stands as a testament to L&T’s capability to conceptualise and execute large-scale infrastructure under the PPP framework, adding that the company is confident of the project’s continued growth under government stewardship.
L&T, a USD 30 billion multinational with operations spanning EPC projects, hi-tech manufacturing, and services, has been progressively recalibrating its portfolio to focus on technology-driven and asset-light segments.
