Synopsis: Larsen & Toubro Limited will sell its Hyderabad Metro stake for ₹1,461.47 crore, exiting a non-core business, unlocking capital, reducing debt risk, and strengthening focus on core engineering and technology sectors.
This Large-cap Stock, engaged in engineering, construction, manufacturing, technology services, and financial solutions across infrastructure and industrial sectors worldwide, is in focus after signing an agreement to sell its entire stake in L&T Metro Rail (Hyderabad) Limited to Hyderabad Metro Rail Limited for Rs. 1,461.47 crore.
With a market capitalization of Rs. 5,50,961.33 crore, the shares of Larsen & Toubro Limited were currently trading at Rs. 4,002.10 per equity share, down nearly 2.29 percent from its previous day’s close price of Rs. 4,095.75.
What is the News?
Larsen & Toubro Limited has announced that it will sell its entire stake in L&T Metro Rail (Hyderabad) Limited to Hyderabad Metro Rail Limited for Rs. 1,461.47 crore. The agreement was signed on April 29, 2026, and the transaction is expected to be completed by June 30, 2026. After the sale is completed, the metro company will no longer remain a subsidiary of L&T. This move is part of L&T’s strategy to exit non-core businesses and focus more on its main engineering and technology sectors.
The Hyderabad Metro project is one of the largest metro projects developed under the Public-Private Partnership (PPP) model. It covers around 69 km across three corridors, improving transport and connectivity in Hyderabad.
Financially, the metro business contributed Rs. 1,100.13 crore in revenue (0.43 percent of total revenue) and had a net worth of Rs. 807.49 crore (0.83 percent of total net worth) in the financial year ending March 2025. These numbers show that while the project is large, its contribution to L&T’s overall business is relatively small.
This sale helps L&T unlock funds from a mature asset and reduce financial risk. After the deal, the buyer plans to refinance the existing debt, which means L&T will be released from its guarantees and obligations related to that debt. Overall, this decision is seen as a positive step, as it improves the company’s financial position, provides cash inflow, and allows it to invest more in its core high-growth businesses while the metro project continues to expand under government ownership.
OrderBook Details
Larsen & Toubro Limited’s order book stands at Rs. 7,33,161 crore as of December 2025, showing strong growth. Segment-wise, Infrastructure Projects contribute Rs. 4,24,937 crore (58 percent), Energy Projects Rs. 2,47,861 crore (34 percent), Hi-Tech Manufacturing Rs. 37,865 crore (5 percent), and Others Rs. 22,493 crore (3 percent).
Together, the Projects & Manufacturing segment totals Rs. 7,33,157 crore, forming the largest share. The Services segment contributes Rs. 4 crore. This strong and diversified order book ensures good revenue visibility and reflects sustained demand across key business segments.
Company Overview
Larsen & Toubro Limited (L&T) is an Indian multinational conglomerate headquartered in Mumbai, India, specializing in engineering, procurement, and construction (EPC) projects, hi-tech manufacturing, and services. Founded in 1938 by Danish engineers Henning Holck-Larsen and Søren Kristian Toubro, it has grown into one of India’s most respected and diversified industrial enterprises.
Recent Quarter Results
Coming into financial highlights, Larsen & Toubro Limited’s revenue has increased from Rs. 64,668 crore in Q3 FY25 to Rs. 71,450 crore in Q3 FY26, which has grown by 10.49 percent. The net profit has decreased by 3.75 percent from Rs. 3,974 crore in Q3 FY25 to Rs. 3,825 crore in Q3 FY26.
Larsen & Toubro Limited’s revenue and net profit have grown at a CAGR of 17.78 percent and 19.26 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 14.5 percent and 16.6 percent, respectively. Larsen & Toubro Limited has an earnings per share (EPS) of Rs. 118, and its debt-to-equity ratio is 1.32x.
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