The surge in international operations, especially from the Middle East, helped India’s largest engineering and infrastructure company Larsen & Toubro (L&T), grow its order books at a rate of more than 15% between FY25 and FY25, even as domestic orders grow slowly.
The company believes that the growth of international operations will once again surpass the domestic business expansion in fiscal 26. It sees a business prospects pipeline ₹12 trillion from the international market ₹The domestic market is $7 trillion in the year. This includes the upcoming contract the company has determined to bid for. L&T usually wins 20-25% of the bid contract.
“The company is taking advantage of huge international opportunities. With the visibility of the international order pipeline, the order book will likely account for more than half of the next year than International,” said Amit Anwani, chief analyst at the Ministry of Industry and Defense of Prabhudas Lilladhar Lilladhar Private Limited.
“There are some risks, such as headwinds in IT and technology services businesses, and high concentrations in the Middle East, but overall, I’m more positive about stocks than before.
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In the context, at the beginning of the fiscal year 25, the company stated that international and domestic prospects were around ₹7 trillion each.
“I think there is momentum in the international market right now. We think that momentum will continue,” said R. Shankar Raman, president and chief financial officer of L&T.
“We do think that FY26 will also have a certain tendency towards international orders,” he said in a media call on Thursday.
Shankar Raman said L&T was not worried about the change in the Indian government’s position and focused on growth dominated by economic growth led by infrastructure investment.
“We do think that investment leads to employment generation, which leads to income generation and therefore consumption. We continue to bet on governments that need to strengthen infrastructure investment. We still think we are underinvested (in infrastructure) already.”
In its latest budget, the alliance government raised the income threshold for zero tax liability and rationalized the direct tax board to stimulate consumption. At the same time, ₹$11.21 trillion in capital expenditure, more shadow than previous budget allocations ₹11.11 trillion left core companies want more.
Record year
L&T’s diversification of international operations helps IT end with high profits in fiscal 25 ₹The fourth fiscal quarter was 54.97 million, 25% higher than the previous year. Revenue for the quarter rose 11% year-on-year ₹743.92 million.
About 70% of the orders the company received during the quarter came from overseas.
The company ends with an order book ₹5.79 trillion, 22% higher than last year. The company’s merger orders are less than half and are now made up of international operations.
Throughout the fiscal year, the company reported consolidated profits ₹15,037 merge top line ₹2.56 trillion. These figures are 15% and 16% higher. L&T received a 15% revenue growth guidance in fiscal 26. Its margin guidance increased to 8.5% compared to the 8.3% recorded in FY25.
While the company is confident that it will maintain its growth rate in the new fiscal, it warns that the geopolitical crisis needs to be paid attention to.
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“The risk of growth remains largely external cross-border tariffs, disruption of supply chains, and ongoing geopolitical pressures. The country will have to adapt to the rapidly growing global landscape while leveraging its domestic strengths to drive growth in a sustainable way,” reads L&T.
The company announced ₹34 per share, resulting in expenses ₹46.75 million.
L&T Stocks in ₹BSE was 3,320.6 on Thursday, while benchmark Sensex fell 0.51%. The stock has fallen by one tenth since the beginning of the year, while Sensex has risen by 2.33%. Thursday’s earnings were announced after the market hour.
