Rs 6,12,800 Crore Order Book: Heavy Civil Infrastructure Company and Telangana Government Reach Understanding on Hyderabad Metro Takeover

Larsen & Toubro Limited (L&T) has announced that it has reached an in-principle understanding with the Government of Telangana (GOT) for the transfer of ownership of the Hyderabad Metro Rail project. The development was disclosed in response to a press note issued by the state government.

As per the filings with BSE Limited and the National Stock Exchange of India Limited, the agreement outlines that the GOT will acquire the Hyderabad Metro Special Purpose Vehicle (SPV). The proposed takeover will be carried out through two steps: refinancing the existing debt of the metro project and acquiring the equity of L&T Metro Rail (Hyderabad) Limited at mutually agreed values.

L&T has stated that it expects the divestment process to be completed by the end of the current fiscal year, FY26. 

The Hyderabad Metro Rail is one of the largest urban infrastructure projects in India, and this development represents a major transition in its ownership and management.

About the Company

Larsen & Toubro (L&T) is a massive Indian conglomerate with its fingers in many pies. Their core business is engineering, procurement and construction (EPC) solutions across various sectors like infrastructure, power, hydrocarbon (oil & gas) and defence. They also manufacture custom-designed machinery for these industries and even have a real estate arm. L&T is a major player in IT services through subsidiaries like L&T Infotech and Mindtree and provides financial services like rural and housing finance through L&T Finance Holdings. They even handle development projects involving infrastructure, toll management and power generation.

According to Quarterly Results, the net sales increased by 11 per cent to Rs 74,392.28 crore and net profit increased by 25 per cent to Rs 5,497.26 crore in Q4FY25 compared to Q4FY24. Looking at its annual results, the net sales increased by 16 per cent to Rs 2,55,734.45 crore and the net profit increased by 15 per cent to Rs 15,037.11 crore in FY25 compared to FY24.

The company has a market cap of over Rs 5 lakh crore and has been maintaining a healthy dividend payout of 33 per cent. Life Insurance Corporation of India (LIC) owns a 13.60 per cent stake in the company as of June 2025. The company has a robust order book valued at Rs 6,12,800 crore as of June 30, 2025. The stock is up by 25 per cent from its 52-week low and has given multibagger returns of over 300 per cent in the last 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.