L&T Bags ₹2,500-5,000 Cr EPC Order from Hindustan Zinc for Rajasthan Smelter Expansion

Mumbai, 1 August 2025: Larsen & Toubro Ltd (NSE: LT, BSE: 500510) has announced that its Minerals & Metals (M&M) division has secured a large Engineering, Procurement and Construction (EPC) order from Hindustan Zinc Ltd (HZL), a Vedanta Group company. The project, part of HZL’s strategic expansion of its Debari Smelter Complex in Rajasthan, underlines L&T’s ongoing commitment to India’s critical metals sector and strengthens its longstanding relationship with HZL.

₹2,500–5,000 Cr Order Awarded for Expansion of Zinc Cathode Production at Debari Plant

The EPC scope involves the establishment of a 250 KTPA Leaching, Purification & Cellhouse facility and a 125 KTPA Jarosite Circuit to produce Special High Grade Zinc Cathodes (99.995% Zn). The project will be executed under L&T’s “Large” classification, indicating a contract value between ₹2,500 crore and ₹5,000 crore.

L&T’s role includes full EPC services such as design, engineering, procurement, site services, and commissioning. Major facilities include the Calcine Storage system, Leaching and Purification Units, Jumbo Cell House (Electrowinning), Effluent Treatment Plant with RO-ZLD systems, electrical infrastructure, instrumentation, and automation.

Over Three Decades of Project Collaboration with HZL Leads to Another Major Win

This order reinforces the trusted relationship between L&T and HZL, which has spanned more than 30 years. During this time, L&T has consistently delivered on beneficiation plants and smelting facility expansions.

Mr. T Kumaresan, Senior Vice President & Head – Minerals & Metals, L&T, stated:

“This win reaffirms L&T’s leadership in the minerals and metals EPC space. Our long-term partnership with HZL reflects our focus on consistent delivery and customer-centric solutions.”

L&T’s Minerals & Metals Division Strengthens Its Position in Core Sectors

The M&M vertical at L&T provides integrated EPC solutions for mineral processing, industrial systems, and heavy manufacturing industries. Its key facilities in Kansbahal (Odisha) and Kancheepuram (Tamil Nadu) serve sectors like steel, cement, ports, fertilisers, and mining. The new HZL order adds significant depth to this vertical’s portfolio in the non-ferrous metals segment.

Share Price of L&T Slips Post Announcement Despite Order Win

Despite securing a major EPC order, L&T shares were trading lower by ₹32.00 or 0.88% at ₹3,604.50 as of 2:32 PM IST. The stock opened at ₹3,636.00 and touched a low of ₹3,592.90 during intraday trade. The muted investor response may reflect broader market sentiment or profit-booking after the recent rally. The company’s market capitalisation stood at ₹4.96 lakh crore with a P/E ratio of 31.25 and a dividend yield of 0.94%.

Larsen & Toubro Ltd. Reports 29.8% Jump in Q1FY26 Net Profit to ₹3,617 Cr

In the quarter ended June 2025, Larsen & Toubro Ltd reported a consolidated revenue of ₹65,036 crore, marking a 16.1% year-on-year growth. The net profit surged 29.8% YoY to ₹3,617 crore, driven by strong performance across infrastructure and IT services. Operating profit for the quarter stood at ₹6,318 crore with a margin of 9.92%. Though margins contracted slightly compared to the previous quarter, higher revenue and improved cost efficiencies supported earnings growth.

Segment-wise, infrastructure projects contributed ₹29,031 crore (59.9%) to total revenue, followed by IT & Technology Services at ₹12,679 crore and Financial Services at ₹3,971 crore.

On an annual basis, the company posted revenue of ₹2,59,859 crore for FY25, a 15.4% increase YoY, and a net profit of ₹15,037 crore, representing a 15.1% annual growth.

Revenue Dominated by Infrastructure, With IT Services Emerging as Key Profit Driver

As of Q1FY26 (June 2025), infrastructure projects remained the dominant contributor to the top line, while IT & Technology Services emerged as the top segment in profit before tax and interest, contributing ₹2,045 crore, compared to ₹1,273 crore from infrastructure.

Capital employed across segments showed the highest allocation to IT & Technology Services at ₹37,734 crore, followed by infrastructure at ₹28,905 crore and development projects at ₹18,102 crore.

Key Performance Metrics Indicate Strong Institutional Support and Healthy Returns

L&T’s key performance metrics remain robust. The company holds a market capitalisation of ₹5.07 lakh crore with institutional holdings increasing to 63.05%. The Price-to-Earnings (P/E) ratio stands at 32, while the Price-to-Book value is 5.7, reflecting investor confidence.

Despite margin pressures, quarterly revenue growth is at 15.5% YoY, and net profit TTM (Trailing Twelve Months) growth stands at 18.8%. The Operating Profit Margin for the quarter is 9.9%, and Return on Equity (ROE) is a strong 15.4%, placing the company above the industry median in multiple financial indicators.

L&T: India’s Engineering Giant With ₹2.6 Lakh Cr in Annual Revenue

Larsen & Toubro Ltd is a diversified Indian multinational with operations in Engineering, Procurement and Construction (EPC), hi-tech manufacturing, and technology services. With an annual revenue base of ₹2,59,859 crore and a strong presence in infrastructure, power, hydrocarbons, defence, and IT, L&T continues to play a pivotal role in India’s industrial growth. The company’s international footprint and deep project execution capabilities position it as one of the most respected engineering firms in Asia.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/299ac048-1f84-4c7f-ab52-8435c74d1dbe.pdf

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