Larsen & Toubro (L&T) has extended the estimated completion date for selling its stake in L&T Metro Rail (Hyderabad) to December 31, 2026. The company had previously moved the deadline from June 30 to September 30, making this the second revision to the transaction timeline.

L&T had entered into an agreement with Hyderabad Metro Rail, a Telangana government enterprise, to divest its entire holding in the metro project for Rs. 14.61 bn. The company said the transaction continued to face structural, financial and regulatory challenges.

In a filing to the BSE, L&T said the estimated completion date had been revised in continuation of its earlier disclosures dated April 29 and July 1, 2026. In April, the company had indicated that the divestment would be completed by June 30 before subsequently extending the deadline to September 30.

L&T has previously expressed a desire to transfer its holding of more than 90 per cent in the Hyderabad metro rail project to either the state or central government through a new special purpose vehicle (SPV). The proposal was linked to operational and accumulated losses incurred by the project.

In correspondence with the Ministry of Housing and Urban Affairs, L&T Metro Rail said the Telangana government had not provided the expected financial assistance despite repeated follow-ups. It said the delay had intensified financial pressure on the concessionaire and made the project increasingly difficult to manage.

The company also attributed substantial cost and time overruns to issues outside the concessionaire’s control, including property acquisition, right-of-way constraints, alignment changes and utility shifting. These factors, alongside continuing operational losses, have complicated efforts to complete the stake sale and address the project’s financial position.