L&T seeks exit from Hyderabad Metro project, cites heavy losses

Infrastructure major Larsen & Toubro (L&T) has formally requested to exit the Hyderabad Metro Rail project, citing mounting financial losses and a lack of support from the Telangana government.

In a letter to Union Housing and Urban Affairs Minister Manohar Lal Khattar, the company said it was open to selling its more than 90% equity stake to either the state or central government through a new Special Purpose Vehicle (SPV). The proposal includes the transfer of operations and maintenance of Phase I, along with the planned Phase II-A and Phase II-B corridors.

The letter, reviewed by Media, stated: “The Telangana government, despite repeated follow-ups, has not



provided the expected financial assistance, and the delay is further aggravating the financial duress of the concessionaire and making the situation necessarily difficult to manage.”

The company pointed to several structural, financial and regulatory challenges that led to substantial cost and time overruns, including land acquisition delays, right of way issues, alignment changes, and utility shifting.

According to L&T Metro Rail’s latest annual report, revenue from operations and other income fell 21% year-on-year to ₹1,108.54 crore in FY25 from ₹1,399.31 crore in FY24. Losses widened to ₹625.88 crore in FY25, compared to ₹555.04 crore in the previous year