L&T’s Buildings & Factories Vertical Gets New Orders of Rs 2,500–5,000 Crore

Mumbai, July 24, 2025: Larsen & Toubro Limited (NSE: LT, BSE: 500510) announced today that its Buildings & Factories (B&F) vertical has successfully secured a series of “Large” orders in both India and the Middle East. These significant contracts are collectively estimated to be valued between ₹2,500 crore and ₹5,000 crore, aligning with the company’s internal project classification criteria.

Despite the announcement, the shares of L&T declined by 0.21% or ₹7.30 and were trading at ₹3,477.50.

Project Scope Across Regions

L&T’s newly acquired projects span critical infrastructure and real estate developments in India and a repeat order in the Middle East.

India: Amaravati and Mumbai

• Amaravati, Andhra Pradesh:L&T has been awarded a major infrastructure development package by the Andhra Pradesh Capital Region Development Authority. This includes the:
  • Construction of Integrated Secretariat & HoD Towers (Towers 3 & 4): These will feature a configuration of Basement + Ground + 39 floors and also include an amenities building.
  • Development of 21 Residential Towers: The scope for these towers covers RCC shell and core work, electrical systems, plumbing, firefighting, lifts, HVAC, DG sets, security systems, internal roads, and comprehensive landscaping.
• Mumbai: In a separate development, the company has clinched a contract from a reputable private developer for the construction of two ultra-luxury residential towers. These towers will have a configuration of 1 Basement + 1 Ground + 5 Podium + 59 Floors, reaching an impressive height of up to 200 metres.

International: Oman

• Muscat, Oman: L&T Oman’s B&F division has secured a repeat order for constructing premium office infrastructure in the capital city. The project involves building three identical towers (Ground + 8 floors) situated above a two-level shared basement. The comprehensive scope of work includes civil, architectural, and MEP (Mechanical, Electrical, and Plumbing) works, interior finishes for common areas, and full-scale landscaping.

Estimated Order Classification

Based on Larsen & Toubro’s official project classification criteria, these newly won orders fall under the “Large” category, indicating their substantial value:

This classification places the total value of these recently secured projects squarely within the ₹2,500 crore to ₹5,000 crore range.

What Does It Mean For The Investors

• Strong Order Book Boost: These fresh orders across India and Oman will strengthen L&T’s order backlog, improving revenue visibility in the Buildings & Factories vertical over the next 2–3 years.
• Geographic Diversification: Projects from both domestic (Amaravati, Mumbai) and international (Muscat) markets show L&T’s expanding global footprint and reduce dependency on any single region.
• Sector Leadership Reinforced: Winning high-value projects in both government and private sectors reflects the company’s reputation, execution capability, and leadership in complex infrastructure.
• Financial Stability Signal: The ₹2,500-₹5,000 crore order range indicates consistent business inflow, which supports cash flows and margin protection, even in a high-cost environment.
• Muted Stock Reaction Temporary: Despite a slight dip in share price (-0.21%), long-term investors may view this correction as an opportunity, given the positive fundamentals supported by order wins.

Road Ahead

L&T’s recent Rs. 5,500 crore buildings & factories orders enhance its revenue visibility and strengthen its order book. While this supports long-term growth, timely execution will be key to maintaining margins. Investors should watch for working capital needs and debt levels. Continued order inflows across segments may lead to earnings upgrades. If execution stays strong, this could support a stock re-rating. Overall, financials remain robust with a steady growth outlook.

About the Company

Larsen & Toubro Ltd is a USD 30 billion Indian multinational engaged in EPC projects, hi-tech manufacturing, and services. With operations in over 50 countries, the company has maintained leadership across its core businesses for over eight decades.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/24ebf0df-fbff-43eb-a044-f35df56e7a85.pdf

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