L&T wants out of Hyderabad Metro, cites losses, debt, and Phase-II operational risks

L&T Metro Rail Hyderabad Ltd. has asked the Centre and Telangana government to take over the Hyderabad Metro project, warning that the proposed Phase-II expansion could trigger major operational and financial setbacks, Informist reported Monday.

In a letter to the Ministry of Housing and Urban Affairs and the state government, the L&T subsidiary cited its worsening financial position and flagged infrastructure-sharing risks linked to the upcoming metro extension plan. Phase-II aims to connect Hyderabad’s airport and high-tech corridors and is currently at the planning stage.

L&T Metro Rail developed Phase-I of the 72-km network at an investment of nearly ₹19,000 crore. It began operations in 2017 under a 35-year concession agreement. The Centre provided viability gap funding, while the state gave land and other logistical support.

According to Informist, the company warned that sharing existing tracks, stations, and infrastructure with the new corridors could create operational chaos. Already under pressure from debt and delayed asset monetisation, the company reported a ₹626 crore net loss in FY25 on revenues of ₹1,108 crore.

Despite repeated appeals, the company said it has received no relief from the state to ease its interest burden or debt stress. L&T, which holds a 90% stake in the metro company, urged the government to take over its equity to “avoid future trouble,” the report said.

The Telangana government owns the remaining 10% of the metro project. It has already submitted Phase-II plans to the urban development ministry for approval.

Parent company Larsen & Toubro Ltd. posted a ₹3,617 crore consolidated net profit for the June quarter, with revenue at ₹63,679 crore. Its stock closed 1.1% higher at ₹3,579.80 on the NSE on Friday.