Hyderabad Metro Rail Losses Rise to ₹405.86 Crore as Government Explores Loan Restructuring

HYDERABAD: L&T Metro Rail (Hyderabad) Limited has reported an increased net loss of ₹405.86 crore in the first half of the current financial year, ended September 30, compared with ₹380.46 crore during the corresponding period last year. Rising interest payments and higher expenditure continue to put pressure on the metro operator’s financial position.

The Telangana government has proposed taking over the first phase of Hyderabad Metro Rail from Larsen & Toubro (L&T) to improve its financial viability. However, the takeover process remains stalled even as the company’s losses continue to mount.

According to the financial results, the company generated revenue of ₹524.78 crore from metro operations and other activities between April and September, up from ₹497.54 crore in the same period last year. However, total expenditure increased to ₹930.64 crore from ₹878 crore, widening the gap between earnings and expenses.

Finance costs stood at ₹522.61 crore during the six-month period, while operating expenses amounted to ₹222.88 crore. The substantial interest burden remains one of the key factors contributing to the company’s continuing losses.

As part of the proposed takeover, the Telangana government is exploring options to restructure loans taken for the first phase of the metro project. L&T Metro Rail currently pays interest at an average rate of seven to eight per cent.

The government aims to reduce the interest rate to 3.5–4 per cent through loan restructuring. SBI Capital Markets (SBI Caps) has been tasked with identifying banks willing to provide loans at the proposed lower rates.

Based on the first-half financial results, the company’s interest burden works out to approximately ₹2.85 crore per day. The proposed restructuring is expected to help ease financial pressure and improve the metro’s long-term sustainability.