New Delhi

Larsen& Toubro on Wednesday said it has extended the timeline for completing the sale of its stake in L&T Metro Rail (Hyderabad) Ltd to December 31. L&T had entered into a pact with Hyderabad Metro Rail Ltd, a Telangana government enterprise, to divest its entire stake in LTMRHL for Rs1,461.47 crore. The company has faced several structural, financial and regulatory challenges with regard to L&T Metro Rail (Hyderabad) Ltd (LTMRHL). "...to our earlier intimations dated April 29, 2026 and July 1, 2026...we hereby inform you that the estimated completion date for the aforesaid transaction has been revised to December 31, 2026," L&T said in a filing to BSE.

In April, the company had said it expected to complete the divestment by June 30, 2026. It subsequently revised the estimated completion date to September 30.

L&T had earlier expressed its desire to offload its stake, over 90 per cent, in the L&T Hyderabad metro rail project to either the state or central government through a new special purpose vehicle, citing operational and accumulated losses. In a letter addressed to Ministry of Housing and Urban Affairs (MoHUA), L&T Metro Rail had said the Telangana government, despite repeated follow-ups, had not provided the expected financial assistance, and the delay was further aggravating the financial duress of the concessionaire and making the situation difficult to manage.

The company had said it faced several structural, financial and regulatory challenges resulting in substantial cost and time overrun due to delays on account of various reasons beyond the control of the concessionaire, viz. property acquisition, right of way, changes in alignment, utility shifting, etc.