Global Economy
Global economic growth in calendar year 2025 is estimated at around 3.0%, reflecting heightened geopolitical tensions, evolving trade policies and divergent domestic policy responses across major economies. Growth was increasingly divergent across regions. While financial conditions improved modestly, supported by declining inflation and expectations of a gradual recalibration of monetary policy, the overall uncertainty quotient remained high.
The global economy entered CY 2026 in a fragile state, with key downside risks arising from higher policy uncertainty and escalating tensions arising from the conflict in West Asia. In CY 2025, US GDP growth was around 2.0%, supported by household consumption, sustained investment in technology and a broadly stable labour market.
However, high energy prices, trade barriers, regulatory uncertainty and tighter financial conditions pose risks to economic momentum.
Growth in the Euro Area was subdued at around 1.5% in CY 2025, constrained by weak economic conditions, structural inefficiencies and continuing energy-related challenges. In China, growth was estimated at about
4.5%, as the economy faces a complex adjustment amidst slowing external demand, continued stress in the property sector, subdued consumer confidence and weaker trade. Potential tariff actions by the United States could further impact Chinas export oriented sectors, adding to near term growth challenges.
The Gulf Cooperation Council (GCC) region — led by Saudi Arabia — strengthened its growth foundation through sustained investments in physical and digital infrastructure alongside accelerated economic diversification. Real GDP growth across the GCC averaged about 3.0-3.3% in CY 2025, led by stronger performance in the UAE and Saudi Arabia, while other member countries recorded more moderate growth. Structural reforms across the GCC continue to support a gradual transition away from oil dependence, with clean energy, diversified industrialisation and tourism emerging as key growth drivers.
Against this backdrop, economic resilience will increasingly depend on domestic demand, fiscal capacity and progress in reducing energy dependence, even as international economic fragmentation continues to weigh on trade flows, investment activity and overall economic sentiment.
Business Model and Strategy
A. Progress towards Lakshya 2026
The current strategic plan, Lakshya 2026, concluded in March 2026. The performance in FY 2025-26 against strategic objectives as defined in Lakshya 2026 (L-26) is as follows:
| Strategic Objectives (SO) | Performance Measures | Performance | |
| SO-I Value-accretive growth of current businesses | \u2022 Revenue Growth \u2022 Composition of Services in Total Revenues | In FY 2025-26, the Group achieved revenues of I 2,85,874 crore (12% growth y-o-y). The Services businesses reported growth of 12% y-o-y with a stable percentage share in revenues at 26% in FY 2025-26. | |
| SO-II Scaling up digital and e-commerce businesses | \u2022 Growth of Digital & E-commerce businesses | In FY 2025-26, Larsen & Toubro Vyomas data center and related services capacity reached 26 MW across facilities in Chennai and Panvel. In addition, Larsen & Toubro Vyoma is developing a 36 MW, AI-ready green data center in Mahape - Navi Mumbai, aligned with its sustainability objectives and long-term infrastructure planning. | |
| During the year, Larsen & Toubro Vyoma also launched its sovereign cloud platform, positioned as an AI-first cloud infrastructure solution, designed to address the growing requirements of enterprises and public sector institutions for data sovereignty, regulatory compliance and secure adoption of artificial intelligence. | |||
| L&T Semiconductor Technologies Limited (LTSCT) strengthened its technology positioning through the acquisition of power module design assets from Fujitsu General Electronics Limited, Japan, and by entering a long-term partnership with Hon Young Semiconductor Company Limited, a wholly-owned subsidiary of Foxconn Technology Group, for silicon carbide (SiC) semiconductors targeting automotive and industrial applications. | |||
| SuFin Limited, a wholly-owned subsidiary of Larsen & Toubro Limited, was incorporated and the business has been transferred from the parent entity on April 1, 2026. This restructuring is intended to sharpen strategic clarity and support the independent scaling of SuFin as a B2B digital marketplace platform. | |||
| L&T EduTech has also improved its position in FY 2025-26 through scaled revenue growth across its core offerings. | |||
| Strategic Objectives (SO) | Performance Measures | Performance | |
| SO-III Developing business offerings to ride the Energy Transition wave | \u2022 Size of Green Portfolio \u2022 New Business or Business offerings developed | The Groups share of Green Business is K 787 billion, which is 51% of standalone revenues in FY 2025-26 (as compared to 53% in FY 2024-25). L&T continues to prioritise its participation in energy transition and sustainability. | |
| The Groups foray into the Wind energy leverages its core engineering capabilities to address rising clean energy demand and strengthen its participation in energy transition infrastructure opportunities. | |||
| L&T Energy GreenTech Limited is partnering with Japan-based ITOCHU Corporation under a Joint Development Agreement to develop a 300 KTPA green ammonia facility at Kandla, Gujarat. The project represents a significant step in the Groups energy transition strategy. | |||
| SO-IV Divestment of non-core businesses | \u2022 Businesses divested | During the year, L&T Power Development Limited (LTPDL), a wholly-owned subsidiary of the Company, has signed a securities purchase agreement to sell its 100% of equity and convertible instruments in Nabha Power Limited to Torrent Power Limited. The Company has executed a Share Purchase Agreement on April 29, 2026 with Hyderabad Metro Rail Limited, a Government of Telangana enterprise, for disposal of its entire shareholding in L&T Metro Rail (Hyderabad) Limited (L&T MRHL), a subsidiary of the Company. The transaction is likely to be concluded by June 30, 2026. | |
| SO-V Enabling business sustainability through a high focus on ESG and Stakeholder Value Creation | \u2022 Metrics linked to ESG performance are based on materiality, e.g., - Carbon Footprint - Resource consumption - Lost Time Injury Frequency Rate - Training Hours | For details, refer to the following in the Integrated Report section: \u2022 Natural Capital \u2022 Social and Relationship Capital \u2022 Human Capital | |
B. Developments in FY 2025-26
At a broader level, the evolving global landscape - marked by energy security concerns, accelerating energy transition, technological transformation and increasing execution complexity in large projects - has necessitated organisational and portfolio realignment across key businesses.
The Hydrocarbon business has been reorganised into three separate businesses, viz. Onshore, Offshore and Offshore Wind, to build deeper domain specialisation, leverage dedicated mega yards at Kattupalli, Hazira and Oman and strengthen offshore installation capabilities. The strategic separation enhances operational agility, engineering depth and client alignment, enabling focused growth, stronger partnerships and sustained leadership across evolving energy and infrastructure markets.
Further, to align with global decarbonisation trends, the Groups foray into the wind energy sector leverages its engineering and execution strengths to address the growing demand for clean energy and contribute meaningfully to the energy transition.
Technological transformation across digital platforms, AI, advanced materials, semiconductors and energy systems is accelerating at an unprecedented pace,
elevating technology and AI capabilities from a competitive advantage to a strategic imperative. In this context, the Group continues to accelerate the growth of newly seeded business lines, including green hydrogen and its derivatives, semiconductor technologies, data centers (Larsen & Toubro Vyoma) and platform businesses such as L&T EduTech and L&T-SuFin.
As part of Lakshya 31, L&T is establishing Electronics Products and Systems (EPS) as a strategic, deep tech,
IP led vertical providing the intelligence layer across defence and industrial businesses. The existing electronics business under PES IC, focused on the defence sector, is being merged into the newly formed EPS business. This integration creates an end-to-end, high value-added electronics portfolio, strengthening L&Ts position in technology driven, future ready domains.
Looking ahead, the Group remains vigilant and cautious, closely monitoring developments and proactively managing risks. L&Ts strong balance sheet, diversified portfolio and broad geographic presence provide resilience, enabling it to respond tactically while continuing to capture emerging opportunities.
C. The Groups businesses and offerings are closely linked to global megatrends
D. Strategy Formulation - Lakshya 2031
Business strategy formulation aims to set long-term goals for the Group and identify areas to leverage its strengths, explore new business opportunities and enhance its existing capabilities and offerings.
This is enabled through an integrated planning framework with two distinct time horizons: a medium-term Strategic Plan (5 years) and short-term (annual) budgets.
L&T commenced work on the formulation of the next five year plan, Lakshya 2031 (FY27-FY31), nearly a year ago. This early start ensures strategic continuity, sharper portfolio choices and preparedness for the next phase of enterprise growth.
Strategic Objectives for Lakshya 2031
i. Existing businesses:
• Continue momentum in EPC and Manufacturing with improved profitability
• Geographical diversification pursued selectively within the EPC portfolio
• Pivot to AI-led operating model for LTM, LTTS
• Drive accelerated growth in Financial Services and Realty businesses
ii. New businesses (Green Hydrogen / Ammonia, Offshore/Onshore Wind, SuFin, Semiconductor, Industrial Electronics, Larsen & Toubro Vyoma): to be positioned as the growth engines for 2030s while providing opportunity for selective value unlocking
iii. Technology
• Strengthen / own domain technology to improve customer retention and value addition
• Extensive use of digital and AI for operational efficiency
iv. Increase shareholder value through improved profitability and return on capital deployed
These strategic objectives are supported through strategic enablers for sustainable and profitable growth
i. Leadership: Ensure development of strong leadership pipeline across businesses, projects and functions
ii. Workforce Productivity & Project Execution:
Programmatic approach for 2X improvement in workforce productivity and faster project execution
iii. Safety: Implement standardised methodologies, improve accountability mechanism and ingrain KNOW HARM culture
iv. Supply Chain: Build agility, resilience and competitiveness through diversified sourcing and digital integration
v. ESG: Ensure that we remain on track for achievement of our neutrality goals for Water (2035) and Carbon (2040)
E. Business Model
Value creation in L&T is enabled through a portfolio comprising:
| # Market Segments | L&T Portfolio |
| 1 Infrastructure & Utilities | L&T Infrastructure & Utilities continues to leverage its established strengths in conceptualising, designing, executing and commissioning large and complex projects. The business spans Buildings & Factories, Transportation Infrastructure, Heavy Civil works, Power Transmission & Distribution, Water & Effluent Treatment, and Minerals & Metals, supported by strong project management and execution capabilities. |
| 2 Energy - Conventional | L&T Energy - Conventional is structured across Hydrocarbon - Onshore & Offshore, and CarbonLite Solutions businesses to drive focused execution, deepen domain expertise and enhance operational specialisation. This structure enables efficient delivery of complex projects. |
| 3 Energy - Green | This business segment will address emerging opportunities in renewable energy (RE) infrastructure, including solar, onshore and offshore wind. The business leverages L&Ts engineering, procurement and project execution capabilities to support the global transition towards clean and sustainable energy systems. |
| 4 Manufacturing & Products | The Manufacturing and Products segment focuses on custom designed and engineered equipment for process industries (including nuclear), Precision Engineering and Systems for defence and aerospace, Construction Equipment & Industrial Products Design and Development, and Electronics Products and Systems. The business serves diverse, high- value sectors, building on strong in house design, engineering and manufacturing capabilities. |
| 5 Technology, Platforms & Services | Technology, Platforms and Services address high growth digital and advanced technology segments, encompassing IT services (LTM), Engineering R&D (LTTS), B2B e-commerce (L&T-SuFin), skilling and assessment (L&T EduTech), data center and cloud services (Larsen & Toubro Vyoma), and semiconductor chip design (L&T Semiconductor Technologies Limited). These platforms strengthen L&Ts digital ecosystem, enable technology led value creation and support long-term growth across industries. |
| 6 Financial Services | L&T Finance Limited (LTF) represents the Groups financial services arm, offering a diversified portfolio of retail lending products. The business advances financial inclusion while delivering technology enabled financial solutions aligned with long-term value creation. |
| 7 Realty | L&T Realty is engaged in the development of residential and commercial real estate projects, anchored on strong and rapid project execution, design excellence, high product quality with a customer-first approach. |
| 8 Development Projects | Development Projects segment will focus on the production of green hydrogen and its derivatives. |
Risk Management Framework
L&T is a diversified conglomerate with operations spanning multiple geographies and industry sectors, including engineering, construction, manufacturing, technology, financial services and real estate. Consequently, the Company deals with a wide range of risks. Taking informed, well-considered risks is an inherent and necessary part of its business. The Companys Enterprise Risk Management (ERM) framework identifies, assesses and mitigates existing and potential risks.
The Chief Risk Officer, Risk teams both at the Group level and at individual businesses, implement the ERM processes and apprise the Board Risk Management Committee and the Apex Risk Management Committee of identified risks and the corresponding mitigation measures.
The ERM framework focuses on Operational Risks, Tactical Risks and Strategic Risks.
Operational Risks
L&T executes a large number of infrastructure and manufacturing projects across geographies, many of which extend over long execution periods. The selection of projects is done after a detailed assessment of risks relating to country exposure, client profile, contract structures, design, execution methodology, and commercial, financial and legal terms through established internal approval mechanisms. Leveraging its experience across engineering and construction, and adopting a methodical approach to risk management, forms the core of the Companys execution philosophy.
In FY 2025-26, the risk environment witnessed greater unpredictability due to geopolitical tensions in key markets such as West Asia and India. Consequently, the ability to anticipate, respond to and recover from such situations has become a central element of risk management at the Company. L&T follows a structured approach to risk governance, anchored in a robust framework that enables a connection between corporate and project teams, enabling swift decision-making, coordinated responses and continuity under adverse conditions.
The Companys key operational risks include the following: Project Execution
L&Ts projects are often large-scale, complex and technologically challenging, involving multiple stakeholders and location-related constraints. To enable project execution within timelines, cost budgets, high safety
standards and in a sustainable manner, a thorough risk assessment is conducted at the pre-bid stage and risk is monitored during the execution and completion stages. Some of the risks that commonly arise include access and right of way (RoW)-related issues, geological challenges, delays in regulatory approvals, design changes, interface risks and workforce shortages.
The Company mitigates these risks through careful selection of clients and geographies, leveraging advanced project management techniques, innovative construction methodologies, digitalisation and partnership with competent suppliers and subcontractors.
Quality and Safety
L&Ts projects demonstrate attention to quality, safety and technical standards by enforcing strict quality control protocols, third-party audits and compliance with global engineering standards. The Company adheres to guidelines such as ISO 9001:2015.
L&T is committed to continuously enhancing health and safety standards across the organisation for workers and subcontractors at project sites and premises. This includes empowerment of safety personnel, continuous training and sensitisation, toolbox talks, provision of protective gear, and specialised training in the safe handling of equipment and materials for workmen. The Company adheres to international standards and guidelines such as ISO 45001:2018.
Supply Chain
Supply chain reliability is a critical determinant of project execution, especially for projects involving global sourcing of materials. Disruptions arising from tariff uncertainty, geopolitical issues, port congestion, airspace restrictions and changes to global shipping routes have increased the risk of delays in material deliveries, escalation in logistics costs and the possibility of extended project timelines.
L&T has adopted a multi-pronged approach focused on diversification, resilience and end-to-end visibility across the supply chain. This includes broad-basing the vendor ecosystem across geographies, increasing localisation of procurement in key markets and developing strategic partnerships with critical suppliers. Emphasis on timely procurement of long-lead items, the use of digital tracking tools and incorporation of flexible logistics strategies, including alternate shipping routes and multimodal transport, helps achieve timely project completion. These measures ensure execution continuity and largely mitigate the impact of external disruptions.
Commodity Price
For infrastructure projects, steel, cement, aluminium, copper constitute a significant proportion of total input costs. Accordingly, appropriately calibrated assumptions related to commodity-linked costs are factored in at the bidding stage, with suitable benchmarks selected wherever project terms permit. For contracts with price variation clauses, suitable indices are adopted to mitigate price risks. In FY 2025-26, base and ferrous metal prices were volatile, driven by supply constraints, higher energy costs and trade policy-driven tariff changes. The risk of margin compression arising from input cost escalation in fixed-price contracts is mitigated in part by locking in prices with suppliers wherever possible and adopting an active commodity hedging strategy using derivatives and forward contracts, where available.
Legal and Contractual
Due to complex long duration projects which have interface risks, delays due to regulatory or RoW approvals or ambiguous contractual terms, disagreements may occur.
The Company proactively negotiates the contractual terms and engages experts for risk assessment to minimise legal and contractual risks. For global businesses, appropriate legal jurisdictions are reviewed to deal with legal risks. Further, L&T endeavours to limit its total contractual liability on any project to an acceptable level. Lastly, the Company also endeavours to ensure that projects have defined force majeure conditions which address tail risks in exceptional situations.
Cybersecurity
Cybersecurity is a critical risk for the Company, given the scale of the Groups operations in terms of projects, offices, companies, people, customer interfaces involving multiple stakeholders, geographies and systems. L&T focuses on protecting its operations against threats such as ransomware attacks, phishing, data breaches and potential disruption of project-critical IT systems. The frequency and sophistication of attempted intrusions globally have increased, necessitating heightened vigilance. The measures adopted in detail have been explained under Digital Transformation, Artificial Intelligence and Information Technology section of the Integrated Annual Report.
Manufacturing Operations
L&Ts manufacturing and fabrication facilities are critical to delivering high-quality engineered products and ensuring timely project execution. These facilities are subject to
risks related to industrial relations, supply chain, natural disasters, regulatory compliance and energy costs. The Company implements robust safety and sustainability protocols and maintains contingency plans to mitigate the impact of natural disasters, environmental events, or localised socio-political disruptions. Technology upgrades and digitalisation initiatives are being leveraged to optimise throughput and efficiency across all manufacturing locations.
Industrial Relations
L&T has established structured mechanisms to monitor and manage industrial relations risks to ensure minimal disruption to operations. Harmonious labour relations are an important factor at L&Ts manufacturing locations and project sites. Timely payment of wages, ensuring safe working conditions, suitable camp facilities and incentives for long service minimise incidences of worksite disruptions, productivity losses and schedule slippages. In certain international locations, cultural sensitivities, local labour regulations and regional undercurrents may amplify this risk. Such disruptions not only impact project timelines and costs but may also lead to reputational and contractual implications if not managed proactively.
Uniform implementation of the New Labour Codes by the industry is important given the worker-intensive EPC operations spanning large, multi-state project sites. Changes relating to wages, social security, working hours and contractor compliance may lead to higher labour costs, increased compliance and ambiguities during the initial phase of implementation. Recognising this, L&T has proactively initiated measures to adopt these practices.
Climate Change
Climate change has increased the frequency and intensity of physical risks, resulting in unforeseen execution challenges. These risks manifest as acute events such as floods, cyclone, heatwaves, air pollution related restrictions (like graded response action plan or GRAP), landslides and glacial lake outburst floods (GLOF), which can create safety concerns and impact project timelines.
To mitigate the impact of such events, L&T implements a range of preventive and responsive measures, including optimisation of the work-rest cycle, deployment of early warning systems, provision of shelters for the workforce and conducting awareness sessions and advisories. These measures sensitise the workforce to potential risks, strengthening issue reporting, and ensure the timely adoption of safety and preventive measures.
Extraordinary Disruption Events
L&T has a crisis management framework to respond to challenging situations including natural calamities, geopolitical upheaval, local unrest, war, terrorist attacks and other emergency situations, with a focus on ensuring the safety and security of its employees, workforce, assets and operations globally.
Under the extant framework, the oversight committee includes senior leadership of the Company which ensures the objectives of safety of workforce and families, safety of its assets and continuity of business. This forwardlooking approach enables swift activation of response protocols, ensuring continuity of operations and swift information flow.
Strategic and Tactical Risks
Economic
L&Ts core EPC business is closely linked to infrastructure investments by governments and capital expenditure by private and public sector entities. Economic slowdowns, budget constraints, financial crises, balance sheet pressures or shifts in priorities can lead to delays or cancellations of major projects. Additionally, periods of high inflation and rising interest rates can constrain capital expenditure, affecting the Companys order inflows.
Region and Country
L&T has significant presence in West Asia through its Hydrocarbon, Power Transmission & Distribution (T&D), Renewables and core urban infrastructure businesses. Furthermore, recent ventures into new regions like Europe present opportunities and risks which are assessed and managed. L&T mitigates such geographical risks through comprehensive country risk assessments during the bidding stage, diversification of business lines across geographies, and working with government, public sector and private clients with proven creditworthiness and good standing.
L&T closely monitors geopolitical developments and incorporates risk mitigation strategies such as contract structuring, hedging mechanisms and contingency planning to safeguard profitability and financial exposure.
Workforce and Talent Management
L&T develops workforce and talent through a blend of internal capability building, local talent integration, robust HR processes and a culture of continuous learning. L&T invests in upskilling programmes and leadership development to retain talent and bridge skill gaps. The
Company also has a succession planning framework for ensuring smooth leadership transitions.
The Company provides training to thousands of young people each year at its 11 Construction Skill Training Institutes (CSTIs) and its 5 sub-centres. Further, L&T has developed a Central Workmen Mobilisation Cell to centrally collate workmen requirements and coordinate with sourcing centres to deploy workmen where needed.
Climate and Energy Transition
The ongoing structural shift from hydrocarbons to RE represents a significant opportunity but is a material transition risk for L&Ts hydrocarbon business.
This shift impacts businesses at the operational level by increasing the demand for green specifications in tenders, building codes and other regulatory frameworks. It also presents EPC opportunities across solar and wind power, offshore wind, pumped hydro storage, battery storage, hydroelectric and nuclear power projects, as well as manufacturing of equipment and systems in sectors such as green hydrogen and electrolysers. Additionally, there is the possibility of increased opportunities in T&D due to the need for grid reconfiguration and evacuation requirements for RE sources.
Bank Credit Facilities
Construction projects require issuance of bank guarantees to clients during the project tenure, and in certain instances beyond project completion. L&T ensures the adequacy of non-funded credit lines - including facilities for bank guarantees, letters of credit, foreign exchange and commodity hedging, as well as funded facilities from financial institutions to meet its financial obligations.
Sanctions and Regulatory Compliance
L&T ensures adherence to sanctions compliance and monitors sanctions related developments of United States of America, European Union, United Kingdom, United Nations and other sanctioning or regulatory bodies. Laws and regulations governing sanctions, trade restrictions are complex and are subject to change. It has a robust internal control framework and robust processes to carry out due diligence of counterparties including clients, vendors, subcontractors, logistic firms, countries and individuals.
L&T complies with regulatory requirements in all countries where it operates.
Artificial Intelligence
The rapid proliferation of Generative AI and Agentic AI platforms presents a risk and opportunity to L&Ts
businesses and to group companies like LTM and LTTS. As clients increasingly automate application development, software testing and engineering R&D workflows, the businesses need to evolve to the new requirements.
For L&Ts financial services business, the proliferation of AI-powered credit underwriting, risk scoring and collections platforms is increasing across the industry. These developments will enable competitive differentiation, and the business is pursuing initiatives to develop proprietary capabilities in loan book portfolio management and credit underwriting.
Investment Risk
L&T has invested and continues to invest in emerging sectors. Investments are continually evaluated and in line with Companys Lakshya plan, businesses are seeded, sustained / divested. New investments are directed towards growth opportunities, some of which involve longer gestation periods. The pursuit of adequate returns on existing and new investments is a guiding principle of the Lakshya plan.
Subsidiaries Performance
L&Ts operations span multiple domestic and international subsidiaries. The Company manages operating risks of unlisted subsidiaries through central oversight, periodic performance evaluations and ensuring strategic alignment with Group-wide objectives and the Lakshya plan.
L&Ts senior management is present on the Boards and Committees of the listed and unlisted subsidiaries, which have adopted suitable policies to mitigate their operational, tactical and strategic risks.
Competition and Pricing Pressure
L&T faces competition from domestic players in India and international firms abroad. Competitive bidding, particularly in government tenders, exerts pressure on margins, and aggressive pricing strategies by competitors can impact L&Ts ability to secure projects. L&T has robust processes to evaluate and take on new business after considering these factors.
Financial Risks
The process of managing the Companys financial exposures is governed by the Risk Management Framework and Policy approved by the Companys Audit Committee under the guidance of the Board. Financial risks in each business portfolio are collated, measured and managed by the Corporate Finance department.
In CY 2026, the global economy is navigating the aftermath of trade disruptions. The moot point is whether the structural shifts in global trade architecture, particularly the reconfiguration of US-China trade flows and the reshoring of supply chains, will stabilise or deepen. Global real GDP growth in 2026 is expected to remain subdued, likely around 3.0%, as the lagged effects of tighter financial conditions, reduced trade intensity and compressed corporate margins continue to manifest.
The US economy faces the dual challenge of managing residual inflationary pressures from tariff pass-throughs while supporting a labour market showing signs of softening. At the same time, elevated AI-led capital expenditure and rapid adoption across industries are beginning to support productivity gains, offering a partial offset to cyclical growth headwinds. The Federal Reserves path remains data-dependent, with the possibility of further rate adjustments depending on inflation and employment trajectories. Fiscal sustainability concerns have also come into sharper focus, with elevated deficit levels and debt servicing costs constraining the governments capacity for counter-cyclical support.
The US-China trade relationship remains a critical fault line. While bilateral negotiations are ongoing, significant tariffs remain in place and technology sector decoupling continues to accelerate. For other trading partners, export-dependent economies — particularly in Southeast Asia and emerging markets — face ongoing uncertainty around market access and supply chain realignment.
In Europe, the structural shift towards defence autonomy has gathered momentum, with NATO member states accelerating military expenditure commitments. While this provides a fiscal stimulus effect in select economies, traditional industrial sectors — including automotive, chemicals and heavy manufacturing — continue to face structural headwinds from elevated energy costs and competitive pressure from lower-cost producers.
The European Central Bank is expected to maintain an accommodative stance, though the pace of easing will be calibrated against persistent core inflation in services.
The Chinese economy has entered 2026 with the continuation of a supportive policy framework, including targeted fiscal stimulus, monetary easing and measures to stabilise the property sector and boost domestic consumption. Notwithstanding these efforts, real GDP growth is projected to remain below 4.5%, constrained by weak external demand, demographic pressures and ongoing credit risks in the financial system. The property sector remains a significant source of systemic risk.
The conflict in West Asia has introduced significant supply- side risks to global energy markets, keeping prices elevated relative to prior years. The conflict introduces a complex risk calculus: it has heightened security risks, disrupted regional trade corridors and created uncertainty around the pace of FDI inflows — particularly into non-oil sectors such as tourism, logistics and financial services. Insurance and shipping costs for regional trade routes have risen from the baseline level, with knock-on effects on supply chain costs across the broader West and South Asia corridor. The region may bounce back quickly, through commitment to economic diversification, clean energy, industrialisation strategies and renewed capex.
In India, real GDP growth for FY 2026-27 is projected at approximately 6.9% based on robust domestic consumption and continued public capital expenditure, even as global headwinds moderate external demand. The Union Budget is expected to maintain fiscal discipline, targeting a deficit of around 4.3% of GDP, while sustaining infrastructure- led growth initiatives. The RBI is expected to manage monetary policy with a focus on anchoring inflation, which is projected to average 4.6% for FY 2026-27. Rupee volatility and capital flow dynamics remain key risks to monitor in periods of heightened global market uncertainty.
Foreign Exchange and Commodity Price Risks
The businesses of the Company are exposed to fluctuations in foreign exchange rates and commodity prices. Additionally, it has exposures to foreign currency denominated financial assets and liabilities. Net foreign exchange risk on revenues, costs, assets and liabilities is managed through forwards and options wherein the counterparties are regulated banking entities. The financial risks involving commodity prices are managed through a combination of price variation clauses embedded in customer contracts, hedges in financial markets and passthrough price arrangements. The price and commodity risk is minimised through modelling and simulation which is built in customer contract as escalations. In the case of contracts with price variation clauses, the Company may run a basis risk between the actual price of the commodity and the reference indices.
The disclosure of commodity exposures as required under Clause 9(n) of Part C, Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, in the format specified vide Chapter VI-E of SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated July 11, 2023 is given below:
Liquidity and Interest Rate Risks
The Company constantly monitors the liquidity levels, economic and capital market conditions, and maintains access to sources of liquidity through a combination of approved banking lines, trade finance and capital markets. The Company deploys its surplus funds in investments, in line with the Board-approved Treasury Policy. The Company dynamically manages interest rate risks through a mix of fund-raising, investment products and derivatives across maturity profiles within the Risk Management Framework.
Financial Resources and Capital Allocation
The capital allocation philosophy of the Company is geared to support business initiatives for the profitable growth of the Company, while retaining liquidity to support short-term requirements of the Group. As a policy, the Company has built appropriate cash buffers and maintains comfortable liquidity reserves to meet both opportunities and challenges.
In FY 2025-26, the Company supported the capital expenditure required to execute projects through various sources of funds. Going forward, the Company will continue to support requirements for new projects through appropriate financing structures.
The Company remains committed to funding capital needs for its real estate business, including land acquisition and development, and to advancing new business initiatives covering green energy projects - green hydrogen and greer ammonia - and the development and expansion of its AI- driven data center footprint. The Company is also investing in semiconductors through a chip-design subsidiary focused on energy, mobility and industrial applications.
Low gearing levels (Gross Debt-to-Equity ratio at 0.16x) at the parent entity level and a healthy cash buffer equip the Company with enough flexibility to deal with normal business uncertainties.
The Company continues to see significant volumes of large-value contracts in West Asia, which necessitate corresponding local non-fund-based banking facilities. The Company is confident of tying up the required facilities during the year to address upcoming requirements.
Internal Controls and Safeguards
Corporate Governance and Framework for Internal Controls
Corporate governance is fundamental to the Companys ability to achieve sustainable growth and predictable outcomes, with a robust internal control framework forming a key pillar of this governance architecture. The Company has established an internal control framework that is commensurate with the nature, scale and complexity of its operations. The framework enables effective alignment of processes with strategic objectives, evolving business requirements, and changing internal and external risk environments. The Company has adopted the globally accepted internal control framework issued by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission.
The Board of Directors and Management set the appropriate tone at the top through their actions and directives, reinforcing the importance of integrity and ethical conduct. The Companys Code of Conduct reflects its culture and values and provides guidance to employees for conducting business in a responsible manner.
Suppliers and business partners are required to adhere to a separate Code of Conduct as part of the registration process, aligning them with the Companys commitment to the preservation of ethics and sustainable growth through the integration of Environmental, Social and Governance (ESG) principles. The Whistleblower / Vigil Mechanism enables employees and business partners to report ethical or legal concerns without fear of retaliation or unfair treatment.
Internal Financial Controls
Internal Financial Controls operate at both entity and process levels and are aligned with the requirements of the Companies Act, 2013. The controls are supported by well-defined policies, standard operating procedures, authorisation guidelines and a Corporate Manual on Accounting and Internal Controls, which together provide a consistent framework for governance, financial discipline and operational oversight across businesses.
The executive management is responsible for establishing, operating and continuously strengthening the internal control system, supported by internal control teams at the corporate and business levels. These teams assist in reviewing and upgrading processes, updating policies and procedures, sharing best practices across the organisation, and ensuring that controls remain effective in response to evolving risks and business dynamics.
Audit and Review Mechanisms
The effectiveness of internal controls is monitored through independent assurance mechanisms. The in-house Corporate Audit Services conduct risk-based internal audits covering core business operations, corporate functions and support departments. The annual internal audit plan is reviewed by the Audit Committee. Significant audit observations, if any, along with the status of remedial actions, are presented to the Audit Committee on a quarterly basis.
The assessment of the operating effectiveness of internal financial controls and internal controls over financial reporting is carried out by Corporate Audit Services and the Statutory Auditors, respectively, through appropriate testing procedures. During the year, no reportable material weaknesses in the design or operating effectiveness of internal controls were observed. In addition, the Company periodically engages external assurance firms to review specific businesses and support functions, and their recommendations are incorporated to further strengthen the internal control framework.
The Companys internal control framework is robust and responsive, providing reasonable assurance on the effectiveness and efficiency of operations, reliability of financial reporting, compliance with applicable laws and regulations, and safeguarding of assets.
OVERALL FINANCIAL REVIEW 2025-26
I. L&T CONSOLIDATED
As the economic environment continues to evolve, shaped by geopolitical developments, the Company has delivered a well-rounded performance across its businesses, covering diverse sectors and geographies. The Company remained focused on maximising shareholder value by divesting identified non-core assets, driving operational excellence through digital initiatives to enhance cost competitiveness, strengthening working capital discipline and funds management, and ensuring effective and profitable execution of its robust order book.
During the year, in line with its strategy to exit non-core businesses, the Company entered into a Securities Purchase Agreement (SPA) with Torrent Power Limited for the divestment of its entire stake in Nabha Power Limited (NPL). NPL owns and operates a 2x700 MW supercritical thermal power plant at Rajpura, Punjab. The required regulatory approvals are currently being pursued, and the transaction is expected to be completed in Q1 FY 2026-27.
The Company has executed a Share Purchase Agreement on April 29, 2026 with Hyderabad Metro Rail Limited, a Government of Telangana Enterprise, for disposal of its entire shareholding in L&T Metro Rail (Hyderabad) Limited (L&TMRHL), a subsidiary of the Company. L&TMRHL is a special purpose vehicle (SPV) created to undertake the business of constructing, operating and maintaining a metro rail system, including transit-oriented development (TOD) in Hyderabad.
Further, the Companys technology arm, L&T Technology Services (LTTS) has entered into a business transfer agreement to sell the Smart World & Communication
business. The divestment will enable capital allocation towards Engineering Intelligence, which is a high-growth focus area for LTTS.
In FY 2025-26, the Company reorganised the Hydrocarbon business into three distinct units, namely the Onshore business, the Offshore business and the Offshore Wind business. Additionally, the financial arm of the Company, L&T Finance Limited, successfully concluded the acquisition of the gold loan business of Paul Merchants Finance Private Limited (PMFPL).
During the year, the Company entered a Scheme of Arrangement for the transfer of its Realty business to its wholly-owned subsidiary, L&T Realty Properties Ltd., by way of a slump sale. The transaction is contingent upon receipt of requisite regulatory approvals. Further, the Company has successfully completed the transfer of its L&T-SuFin e-commerce platform business to its wholly- owned subsidiary, SuFin Limited. The move is part of the Companys strategic restructuring to streamline its operations and house its digital commerce initiatives under a dedicated subsidiary.
In FY 2025-26, the Companys listed subsidiary - LTIMindtree Limited - was rebranded as LTM Limited, reflecting its strategic evolution into an AI centric Business Creativity Partner role that integrates advanced technology with human insight. Further, the Company has consolidated its data center operations under the Larsen & Toubro Vyoma brand (previously operating as L&T-Cloudfiniti). Larsen & Toubro Vyoma extends the Companys core engineering and manufacturing expertise into the digital economy, with a forward-looking approach to data infrastructure that emphasises scalability, security, sustainability and responsible AI.
As at March 31, 2026, the L&T Group comprised 90 subsidiaries, 5 associate companies, 9 joint ventures and 35 jointly held operations. The majority of the Groups entities serve as strategic extensions of the Companys diversified business model, enabling expansion into new geographies, technologies and specialised business segments.
L&T Group achieved record order inflows of I 4,35,590 crore during FY 2025-26, registering a growth of 22.1% over the previous year, the highest in the Companys history. The growth was driven by the strong investment momentum in West Asia, sustained policy-led capex impetus by the Government of India, and an increasing participation of private sector enterprises in the domestic market. The buoyancy in West Asian businesses resulted in international orders accounting for 58% of total order inflows, reflecting a stable geographic mix.
The year witnessed the booking of some noteworthy orders across businesses. The Infrastructure segment received an international High-Speed Rail order under the Heavy Civil Infrastructure unit; multiple RE and transmission projects from West Asia under the Power Transmission & Distribution and Renewables businesses; multiple ultra-mega orders in the Hydrocarbon business across its verticals; and domestic BTG orders within the CarbonLite Solutions business.
The Infrastructure segment continued to be the largest contributor to the Companys business portfolio, accounting for 46% of the overall order inflow, compared with 49% in the previous year.
As at March 31, 2026, the order book is at a record level of I 7,40,327 crore, providing strong multi-year revenue visibility for the Group. The infrastructure segment remained the largest contributor to the consolidated order book, accounting for 57% of the total as at the year-end.
The order book registered a growth of 27.8% on a y-o-y basis, primarily driven by the intake of several high-value orders during the year. As on March 2026, around 61% of the total order book comprised orders received from Government of India, state governments (including local authorities) and public sector enterprises, both domestic and international. The share of the private sector has increased to 39% of the total order book as on March 2026, compared with 28% as on March 2025. Of the domestic order book, 19% of the orders are funded by multilateral agencies.
The share of the international orders in the consolidated order book increased from 46% to 52%, on account of higher international order intake during the year.
Consolidated Revenue from Operations
L&T Group recorded revenue of I 2,85,874 crore during FY 2025-26, registering a growth of 11.8% y-o-y. The growth was primarily driven by execution progress across project and manufacturing businesses. The share of international revenue at the Group level increased to 54% in FY 2025-26, compared with 50% in the previous year, reflecting strong execution and order conversion in overseas markets.
During the year, growth was visible across most of the segments. FY 2025-26 revenue growth was driven by strong execution in Energy Projects, IT & Technology Services and Hi-Tech Manufacturing, reflecting improved order conversion and scaling of technology-led businesses. Infrastructure revenue remained stable, Financial Services recorded steady growth, while there was a marginal decline in Development Projects business.
Operating Expenses and PBDIT
Manufacturing, Construction and Operating (MCO) expenses for FY 2025-26 were at I 1,92,837 crore representing an increase of 12.8% over the previous year. These expenses primarily comprise the cost of construction materials, raw materials and components, sub-contracting expenses, and interest costs in the Financial Services business. MCO expenses constituted 67.5% of revenue, compared with 66.9% in the previous year, mainly due to cost pressures in some projects within the portfolio of Project & Manufacturing businesses.
Staff expenses for the year FY 2025-26 were at I 52,187 crore, an increase of 11.6% over the previous year, reflecting a combination of employee additions and salary revisions.
As a percentage of revenue, staff costs remain broadly stable. The Group continues to focus on productivity improvements, digitalisation and manpower optimisation across its businesses.
Sales and administration expenses increased to I 11,699 crore, a modest increase of 1.2% y-o-y. These expenses accounted for 4.1% of revenue, compared with 4.5% in the previous year.
The Groups operating profit for FY 2025-26 increased to I 29,151 crore, registering a growth of 10.3% y-o-y, largely driven by higher business volumes. The EBITDA margin for FY 2025-26 was 10.2%.
Overall margin performance was impacted by execution-related time and cost pressures in the Infrastructure and Energy segments, including higher provisioning on contract assets and customer receivables. Cost optimisation and execution-related savings achieved in select projects partially mitigated the impact on margins.
Depreciation and Amortisation Charge
Depreciation and amortisation charges for FY 2025-26 increased to I 4,365 crore from I 4,121 crore in the previous year, registering an increase of 5.9%, mainly reflective of higher capital expenditure spend across the Group in recent years.
Profit Before Interest and Tax
Segment-wise composition of PBIT for FY 2025-26 is represented below:
The segment-wise PBIT registered improvement over the previous year across all businesses except Development Projects, where a higher gain on the sale of commercial property of Hyderabad Metro was recorded in the previous year.
Other Income
Other Income, comprising interest, dividend and other earnings from treasury operations, increased to I 5,761 crore in FY 2025-26, registering a growth of 39.7% over I 4,125 crore in the previous year. The increase was primarily driven by effective treasury management and improved yields on surplus funds.
Finance Cost
The interest expenses for FY 2025-26 declined to I 2,849 crore, registering a reduction of 14.6% compared to I 3,334 crore in the previous year. The decline was supported by lower average borrowing at the Group level, along with a reduction in the borrowing rate. Accordingly, the average interest cost for FY 2025-26 was lower by 20 basis points (bps) as compared to the previous year.
Tax Expense
Income tax charge for FY 2025-26 was at I 6,816 crore, representing an increase of 15.7% over I 5,891 crore in the previous year, due to higher profits and an increase in the effective tax rate.
Exceptional Items
Exceptional items during the year mainly included a onetime impact related to the revision in gratuity liabilities pursuant to the implementation of the New Labour Codes.
In the previous year, Exceptional Item is towards the part reversal of impairment of funded exposure in L&T Special Steels and Heavy Forgings Private Limited (LTSSHF).
Consolidated Profit after Tax and EPS
Consolidated Profit after Tax (PAT) for FY 2025-26 stood at I 16,084 crore, an increase of 7.0% over I 15,037 crore in the previous year. The increase is primarily attributable to improved activity levels and efficient treasury operations.
Consolidated Basic Earnings per Share (EPS) for FY 2025-26 at I 116.93 improved over the previous year at I 109.36.
Return on Consolidated Net Worth
Consolidated Net Worth, as at March 31, 2026, stood at I 1,09,290 crore, reflecting a net increase of I 11,634 crore compared to the position as at March 31, 2025. The Return on Net Worth (RONW) for FY 2025-26 declined to 15.5%, compared to 16.3% in the previous year, primarily due to the one-time impact arising from the revision in gratuity liability due to implementation of the New Labour Codes.
Liquidity and Gearing
Cash flow from Operations (including change in loans and advances towards financing activities) for FY 2025-26 increased to I 16,741 crore as compared to I 9,151 crore in the previous year, supported by healthy execution and efficient working capital management. During the year, borrowings increased by I 6,609 crore to sustain higher level of operations mainly in Financial Services business and additional funds were generated mainly from treasury and dividend income.
Funds were mainly utilised for surplus investments of I 8,745 crore, capital expenditure of I 4,469 crore and payment of dividend of I 4,676 crore. Further, funds were utilised for net interest payment of I 3,183 crore and investments of I 1,553 crore in subsidiary, associates and joint ventures during FY 2025-26.
Consequently, there was a net increase of I 2,846 crore in the cash balances as at March 31, 2026, compared to the beginning of the financial year.
Consolidated Fund Flow Statement i crore
| Particulars | FY 2024-25 | FY 2025-26 |
| Operating activities | 9151 | 16741 |
| Additional borrowings (net | 15203 | 6609 |
| of repayment) | ||
| Treasury and dividend | 2228 | 3028 |
| income | ||
| ESOP proceeds (net) | 9 | 8 |
| Sources of Funds | 26591 | 26386 |
| Capital expenditure (net) | 3541 | 4469 |
| Purchase of investments | 13701 | 8745 |
| Net Investment | 494 | 1553 |
| Dividend paid | 3850 | 4676 |
| Interest paid | 3609 | 3182 |
| Payment to minority | 1196 | 915 |
| interest (net) | ||
| Increase in cash balance | 200 | 2846 |
| Utilisation of Funds | 26591 | 26386 |
Total Group borrowings as at March 31, 2026, were lower at I 1,21,683 crore compared to I 1,29,559 crore as at March 31, 2025. The decrease was primarily driven by repayments at the parent level. Further, borrowings related to Hyderabad
Metro and Nabha Power have not been considered, as both businesses have been classified as Asset(s) Held for Sale.
At the Group level, the gross debt-to-equity ratio decreased to 0.95:1 as at March 31, 2026, from 1.12:1 as at March 31, 2025. Additionally, the net debt-to-equity ratio decreased to 0.35:1 as at March 31, 2026, from 0.60:1 as at March 31, 2025.
Details of significant changes in key financial ratios along with explanation:
In compliance with the requirement of Listing Regulations, the key financial ratios of the Group have been provided hereunder, along with explanations only for significant changes, defined as changes of 25% or more as compared to the previous financial year:
| Sr. No. Particulars | FY 2024-25 | FY 2025-26 | % Growth |
| (i) Gross Debt Equity Ratio | 1.12 | 0.95 | 15.7% |
| (ii) PBDIT as % of net revenue | 10.3% | 10.2% | -1.4% |
| (iii) Net Working Capital % of Sales* (Excluding Financial Services & Corporate) | 11.0% | 4.1% | 62.6% |
| (iv) Interest Coverage ratio# (Excludes Financial Services and Finance Lease Activity) | 6.75 | 9.19 | 36.1% |
*The significant change in Net Working Capital % of Sales is on account of receipt of customer advances on award of new orders and higher vendor credit.
#The significant change in the Interest Coverage Ratio for FY 2025-26 has been due to improvement in profits and reduction in average borrowings, primarily at the L&T Standalone level.
II.L&T STANDALONE
L&Ts standalone financials reflect the performance of Infrastructure Projects, Energy Projects, Hi-Tech Manufacturing and Others segments. The Others segment comprises Realty, Smart Infrastructure & Communication, Construction & Mining Machinery, Rubber Processing Machinery, E-commerce / digital platforms and data centers.
Brief Summary of Performance at Standalone Level:
| Parameters (in I crore) | FY 2024-25 | FY 2025-26 | % Growth y-o-y |
| Order Inflow | 2,39,336 | 2,90,574 | 21% |
| Share of International Order Inflow | 50% | 47% | |
| Revenue | 1,42,509 | 1,53,680 | 8% |
| Share of International Revenue | 29% | 33% | |
| Order Book | 4,70,444 | 6,13,235 | 30% |
| Share of International Order Book | 35% | 43% | |
| PBDIT | 11,588 | 12,565 | 8% |
| Recurring PAT | 10,396 | 13,130 | 26% |
| Exceptional Item* | 475 | (6,843) | |
| Overall PAT | 10,871 | 6,287 | -42% |
| Net Worth | 71,896 | 74,533 | 4% |
| RONW (%) | 15.9% | 8.6% | |
| EPS (in Rs.) | 79.06 | 45.71 |
*Exceptional item for FY 2025-26 includes one-time impact of revision in gratuity liability due to New Labour Codes and impairment of investment in LTMRHL. The impact of the same is being reflected in RONW% and EPS for FY 2025-26.
Liquidity and Gearing
Business operations generated cash flows of I 21,928 crore during the year, compared to I 12,703 crore in the previous year. The increase is attributable to improved volumes and better working capital management. The proceeds from treasury income of I 1,723 crore and dividend income from S&A companies at I 3,403 crore have been utilised towards repayment of borrowings (incl. repayment of lease liability) worth I 10,136 crore, purchase of surplus investments of I 4,825 crore and net investment in S&A companies at I 1,151 crore. Further, capex payments of I 1,915 crore, dividend payments of I 4,676 crore and interest payments of I 1,896 crore were also made during the year.
There was a net increase of I 2,464 crore in the cash balances as at March 31, 2026, compared to the beginning of the year.
Fund flow statement i crore
| Particulars | FY 2024-25 | FY 2025-26 |
| Operating activities | 12703 | 21928 |
| Treasury and dividend income | 4237 | 5127 |
| ESOP Proceeds | 9 | 8 |
| Sources of Funds | 16949 | 27063 |
| Capital expenditure (net) | 2039 | 1915 |
| Repayment of Borrowings (net of additional borrowings) | 680 | 10136 |
| Purchase of Other investments | 7150 | 4825 |
| Net investment | 1391 | 1151 |
| Dividend paid | 3850 | 4676 |
| Interest paid | 2192 | 1896 |
| Increase / (decrease) in cash balance | (353) | 2464 |
| Utilisation of Funds | 16949 | 27063 |
Total borrowings as at March 31, 2026, declined to I 11,773 crore, compared to I 21,935 crore in the previous year. The gross debt-to-equity ratio decreased to 0.16:1 as at March 31, 2026, from 0.31:1 as at March 31, 2025. After considering cash and cash equivalents, the Company was in a net debt-free position at the end of the year.
Buildings & Factories
Overview
The Buildings & Factories (B&F) business of the Company delivers end-to-end solutions — from concept to commissioning — shaping the built environment and industrial landscape. It continues to lead the sector with proven expertise across a diverse portfolio, including airports, automobile plants, data centers, educational campuses, hospitals, industrial warehouses, IT parks, residential buildings, office towers, manufacturing facilities, retail developments, semiconductor fabrication (FAB) and outsourced semiconductor assembly and test (OSAT) facilities, stadiums, test tracks, and other industrial infrastructure.
The business offers integrated capabilities across the entire value chain, supported by dedicated engineering design centres, robust project management systems, strong procurement practices, and specialised technical services. With a skilled workforce, a reliable vendor ecosystem and a meticulously digitalised project control framework adept at navigating complex challenges, the business has played a pivotal role in delivering iconic structures in India and overseas.
The business is organised into the following Strategic Business Groups (SBGs):
Health, Public Spaces & Airports SBG
This SBG consists of the following four businesses:
The Health business is committed to transforming healthcare infrastructure through its expertise in planning, design and execution of world-class medical facilities.
With a strong portfolio of projects across India, the business plays a pivotal role in building the countrys healthcare ecosystem.
The Public Spaces business undertakes design and execution of iconic projects such as statues, museums, stadiums, metro stations, convention centres, government buildings, malls, integrated multimodal developments and educational institutes, right from concept to commissioning, on an EPC basis.
The Airports business specialises in designing and constructing airport terminal buildings, along with associated service structures. In addition, the business provides integrated airport system solutions, including baggage handling systems, passenger flow monitoring systems, passenger boarding bridges, visual docking guidance systems, air traffic control (ATC) towers, cargo facilities, aircraft hangars, and other essential facilities.
The Data Center business executes hyperscale and enterprise data centers with high reliability, scalability and speed. The business specialises in complex mechanical, electrical and plumbing (MEP) systems, including high- density cooling, redundant power systems and advanced fire protection systems.
The Oman operations undertake EPC and design-and- build execution projects in that country, primarily across healthcare, hospitality, mixed-use developments, airports, special projects, business parks, and select infrastructure facilities.
Residential, Commercial Buildings & Factories SBG
This SBG consists of the following three businesses:
The Residential business is a leading EPC solutions provider across elite, affordable and mass-housing segments. The business has expertise in executing high-rise towers and large-scale residential developments. This business has pioneered the use of precast technology for faster, high quality and efficient construction.
The Commercial Buildings business focuses on the delivery of end-to-end solutions for establishing Advanced Technological Facilities (ATFs) including semiconductor FAB and OSAT facilities. It also provides turnkey design- and-build solutions for IT parks, office spaces and commercial buildings.
The Factories business undertakes the construction of manufacturing and industrial facilities, offering comprehensive EPC solutions with single-point accountability. The unit serves clients across sectors including automobiles — plants and test tracks, electronics, photovoltaic (PV) manufacturing, glass, pharmaceutical manufacturing, paints, life science products, warehouses, and various categories of fast-moving consumer good (FMCG).
Business Environment
Health
The Indian healthcare sector is undergoing a significant transformation, driven by capacity-led expansion to address the rising demand for quality healthcare infrastructure.
To align with global benchmarks, the country requires an estimated addition of two million hospital beds by 2030. Several state governments, including Assam, Odisha, Bihar and Jharkhand, have announced large-scale healthcare infrastructure expansions aimed at improving the bed-to- population ratio.
During the year, major hospital chains announced significant bed addition plans over the next three to five years, with a pronounced focus on the development of specialised cancer care facilities. Furthermore, the increasing role of Corporate Social Responsibility (CSR) in healthcare is reshaping the sector. Leading healthcare institutions have invested in the development of state-of-the-art oncology centres across India.
Bhogapuram international Airport, Andhra Pradesh
Public Spaces
The Public Spaces business unit continues to witness growth, driven by a strong government focus on sports infrastructure, urban renewal, tourism and cultural infrastructure, with its project portfolio reflecting deep experience and proven capability in delivering complex, high-visibility public infrastructure.
Rising investments in capital city infrastructure, convention centres and iconic public landmarks are providing a robust project pipeline. With an increasing emphasis on citizencentric design and integrated urban development, the business is well positioned to deliver high-impact, design- led infrastructure aligned with Indias ambitions, including readiness for global events.
Airports
The airport sector is experiencing sustained expansion, driven by rising air passenger traffic and increasing demand for enhanced connectivity. Development of new greenfield airports and modernisation of existing terminals is accelerating, particularly in Tier II and Tier III cities. Government initiatives and private sector participation continue to support the sectors growth trajectory. An increasing focus on world-class passenger experience, advanced infrastructure and integrated developments such as aerocities, is creating additional opportunities and supporting long-term sector growth.
Data Center
Data centers are emerging as one of the fastest-growing infrastructure segments, driven by a rapid increase in data consumption, proliferation of AI, a structural and sustained shift towards cloud computing and national digital transformation strategies, such as data localisation policies in India under the Digital Personal Data Protection (DPDP) Act, 2023, Saudi Vision 2030 and UAE Centennial 2071.
Increasing investments from global entities, including sovereign wealth funds, together with domestic policy support through special economic zones (SEZs) and tax incentives, are driving infrastructure development in these regions.
Residential
The residential real estate sector continues to demonstrate strong momentum, driven by rapid urbanisation, rising household incomes and sustained demand across midincome and premium segments. Growth is further supported by infrastructure development, improved connectivity and policy initiatives such as Pradhan Mantri Awas Yojana (PMAY). Market preferences are increasingly shifting towards integrated townships, high- rise developments and better-quality housing. With sustained demand across metropolitan and emerging cities, supported by improving buyer sentiment and developer confidence, the residential sector offers a stable and scalable growth opportunity.
Commercial Buildings
Urbanisation, business expansion and increased investments in the technology sector continue to be the key demand drivers for the Commercial Buildings segment.
The IT Parks and Office Buildings segment is witnessing strong momentum, led by the rapid growth of research and development (R&D) centres and Global Capability Centres (GCCs). This is driving demand for Grade A office spaces with a focus on smart technologies, flexibility and sustainability. Government incentives and targeted investments in semiconductor manufacturing are supporting growth in specialised facilities such as fabrication units, cleanrooms and advanced technology- driven infrastructure.
Factories
The factory construction business is experiencing sustained growth, primarily driven by increasing private sector investments. The surge is largely supported by the Government of Indias (GoIs) initiatives such as Production- Linked Incentive (PLI) scheme, Make in India, Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), Pradhan Mantri Mega Integrated Textile Regions and Apparel (PM MITRA), Electronics Manufacturing Cluster (EMC) and the India Semiconductor Mission (ISM), which are aimed at strengthening domestic manufacturing and capacity creation. The PLI scheme has been a key catalyst, providing financial incentives to industries to expand production capacities and accelerate capital investments.
International
The business has adopted a focused approach to bidding in the Gulf Cooperation Council (GCC) and Central Asian markets. Oman continues to be a stable market for the business in the hospitality and health segments.
Major Achievements
Major Orders Won
• Luxury high-rise residential development for multiple developers in Bengaluru, Mumbai and Gurgaon
• Electronics manufacturing plant, Kancheepuram,
Tamil Nadu
• Glass manufacturing plant, Gujarat
• IT Park in Bengaluru, Karnataka
• Mixed-use Development for a reputed developer in Mumbai, Maharashtra
• Advait Lok Museum at Omkareshwar, Madhya Pradesh
Key Projects Commissioned
• Allahabad High Court, Uttar Pradesh
• Kartavya Bhavan 1, 2 & 3, Delhi
• Seva Teerth, Delhi
• Max Nanavati Hospital - Phase I, Vile Parle,
Mumbai, Maharashtra
• Mixed-use Development at Muscat Hills
• Oman Botanic Garden
• Test Track at Trichy, Tamil Nadu
• The Prestige City - Aspen, Avalon, Meridian in Bengaluru, Karnataka
Significant Initiatives
The business sustained its strong focus on innovation, sustainability and workforce well-being through several transformative initiatives during the year. A key milestone was the successful delivery of Prefabricated Prefinished Volumetric Construction (PPVC) at the Ayodhya Guest House Project and modular sanitation pods at the Central Secretariat, marking a decisive shift towards modular construction with significant gains in speed, quality and site efficiency.
Sustainability efforts were strengthened through green power adoption across project sites in Maharashtra, alongside structured power purchase agreements in Karnataka and West Bengal, thereby reducing dependence on conventional energy.
Emerging technologies such as three-dimensional (3D) printing were also leveraged, including the successful delivery of 3D-printed luxury villas in Bengaluru.
Workforce welfare continues to remain a priority for the business. Workmen habitats were standardised, featuring improved living conditions, sanitation and utilities, and were implemented across all new projects.
In addition, the business advanced modern construction methodologies through increased adoption of precast systems, modular construction and enhanced Building Information Modelling (BIM). These initiatives were complemented by the deployment of Al-enabled safety systems and digital tools, strengthening execution efficiency, quality and operational control.
Outlook
Health
The healthcare sector continues to see steady investment momentum. Leading private hospital groups have announced expansion plans across Tier I and Tier II cities, while states such as Odisha, Jharkhand, Bihar and Haryana are progressing with speciality hospital developments.
The Union Budget 2026-27 has increased allocation under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) by nearly 4% to I 11,307 crore and proposed the development of five medical tourism hubs, reflecting continued policy support for healthcare infrastructure development.
Public Spaces
The outlook for the Public Spaces segment remains positive with continued government expenditure on urban infrastructure, tourism and sports. Budgetary allocations for the Ministries of Housing and Urban Affairs and Sports have increased by approximately 10% over the previous year, with funding directed towards stadiums, convention centres and integrated urban infrastructure.
Ongoing initiatives in city development, cultural precincts and transit-oriented projects continue to expand the project pipeline. The increasing adoption of EPC and design- build models is shaping project structuring and execution approaches across the segment.
Airports
The domestic airport sector is supported by ongoing capacity expansion and regional connectivity initiatives such as Ude Desh ka Aam Naagrik (UDAN). Development of new airports and modernisation of existing facilities continue under government and private operator programmes. Airport infrastructure projects across regions such as the GCC and the broader Asia-Pacific region are contributing to the sectors overall project pipeline.
Residential
The residential sector is expected to maintain steady growth, with increasing demand for high-rise developments, integrated townships and premium housing. Urban redevelopment and expansion into emerging micro-markets are likely to drive new opportunities. With continued urbanisation and evolving consumer preferences, the sector is poised to remain a stable and scalable contributor to long-term growth.
Commercial Buildings
The Commercial Buildings business is well positioned to capitalise on rising demand under the Semcon India Programme for ATFs, including semiconductor FAB and OSAT projects, by leveraging its strong experience, technical
expertise and strategic partnerships to penetrate this niche segment. At the same time, it continues to maintain a strong focus on serving clients across the commercial and retail sectors.
Factories
Indias manufacturing sector continues to be supported by policy-led initiatives such as the PLI scheme. Complementary programmes, including the National Policy on Electronics 2019, FAME II, Electronics Manufacturing Cluster (EMC)
2.0 scheme, Electronics Components Manufacturing scheme and BioPharma SHAKTI, support investments across electronics, semiconductors, electric vehicles and pharmaceuticals.
Data Center
The Data Center segment is supported by increasing digital adoption, cloud infrastructure expansion and data localisation requirements. Investments by both domestic and global operators continue across key markets in India and the GCC, supported by the growing integration of AI and digital services. Industry estimates indicate capacity additions of approximately 3 GW in India and 6 GW across GCC countries by 2030, reflecting the scale of planned data center infrastructure development.
International
The business continues to selectively expand in West and Central Asia, with a focus on airports and data centers. In Oman, the business is primarily focused on the airports, hospitality and healthcare sectors.
Transportation Infrastructure
Overview
The Transportation Infrastructure (TI) business offers comprehensive turnkey design-and-build EPC solutions with single-point responsibility for delivering projects such as roads, runways, bridges, elevated corridors, railways, urban transit infrastructure and airports.
The business is divided into two Strategic Business Groups (SBGs), namely Roads, Bridges & Formations (RBF) Business Group and Railways Business Group (RBG).
The RBF Business Group provides design-and-build EPC construction services. It is further subdivided into the following Business Units; Roads and Runways (R&R), Bridges, High-Speed Rail (HSR) and DFCC.
The R&R business unit operates in (a) the road infrastructure sector, including associated structures, cross-drainage, toll plaza, wayside amenities; (b) the airport sector, encompassing the construction of complete airside infrastructure, including runways, taxiways, aprons, airfield ground lighting and fuel hydrant systems, for both domestic and international airports, both greenfield and brownfield; and (c) design and construction solutions for elevated corridors in urban areas, along with civil construction services for urban railway network projects.
The Bridges business unit undertakes the construction of bridges by employing innovative and advanced bridge construction techniques such as incremental launching, segmental construction, full span construction, cable stay construction, precast and pre-stressed concrete, as well as steel and concrete composite construction.
The HSR business unit undertakes the civil construction of HSR, Semi HSR and Rapid Rail Transit Systems.
The DFCC business unit provides construction services for railway civil works in dedicated freight corridors.
The RBG is further subdivided into the Mainline Business Unit (MLBU), Metro Business Unit (MTBU) and International Business Unit (IBU). The MLBU undertakes EPC works in the domains of trackwork, electrification and systems integration, including signalling and telecommunication, for all mainline railway projects, trackwork, dedicated freight corridors and rail links to ports, mining and power plant facilities. The MTBU carries out EPC works that require ballastless trackwork, electrification and systems integration for mass rapid transit systems, regional rapid transit systems and semi high-speed and HSR projects in India.
To focus on the opportunities emerging from the Association of Southeast Asian Nations (ASEAN) region and West Asia, a separate International Business Unit (IBU) has been formed. The scope of the IBU includes mainline works and integrated systems works for mass transit and HSR projects.
The business has Engineering Design Centres located at Mumbai, Faridabad and Chennai; a Competency Development Centre at Kancheepuram; and a Workmen Training Centre at Ahmedabad.
Business Environment
Roads, Bridges & Formations
The Ministry of Road Transport and Highways (MoRTH) has set a target to construct 1,85,000 km of national highways by 2030. The government continues to prioritise highway development and capital-recycling to support infrastructure growth. The National Highways Authority of India (NHAI) has identified 124 national highway projects spanning approximately 6,376 km for award in FY 2025-26, with an estimated outlay of I 3.45 lakh crore, largely driven by projects under the Hybrid Annuity Model (HAM), reflecting a balanced risk-sharing approach.
Under the first phase of the National Monetisation Plan (NMP-I), NHAI mobilised approximately I 1.20 lakh crore during financial years 2022-25, achieving close to 74% of the road sector target, with cumulative monetisation since FY 2018-19 reaching about I 1.4 lakh crore. Building on this progress, the government has announced the second phase of the National Monetisation Plan (NMP-II) under which highway asset monetisation is targeted at I 4.42 lakh crore over financial years 2026-30, representing over 26% of the overall monetisation target. This enhanced focus on monetisation is expected to support capital-recycling, strengthen funding sustainability and enable continued investment in highway infrastructure.
Railways Business Group
The railway sector has demonstrated continued momentum in recent years, supported by sustained investments in infrastructure creation and the adoption of modern construction methodologies. Sectoral activity has expanded across key segments including capacity augmentation, network strengthening, station redevelopment and HSR, reflecting the governments ongoing emphasis on modernisation of the rail ecosystem.
A key highlight of the Union Budget 2026-27 is the strong push towards new HSR connectivity as growth enablers, aimed at strengthening regional economic clusters and supporting high-productivity mobility.
Indian Railways has undertaken several initiatives to modernise rolling stock, improve passenger amenities and enhance service quality. Parallel efforts are also under way to increase average train speeds and improve operational efficiency across the network.
Looking ahead, the sectors outlook continues to remain positive, supported by the implementation of large ongoing projects and the announcement of new investments. The railway sector is expected to attract increased capital, play a critical role in economic development and contribute significantly to employment generation.
Major Achievements
Major Orders Won
• T1-Track Works Package - Mumbai-Ahmedabad HSR, Mumbai-Vapi (157 RKM)
• Roads and Transport Authority (UAE) - Improvement of Latifa Bint Hamdan Street, Phase 1
• Hyderabad Greenfield Radial Road, Phase 2
• Muri Ganga Bridge Project, West Bengal
• PSI, Traction, E&M: Mumbai Metro Rail Line 4&4A Wadala-Kasarvadavali Gaimukh (24 KM)
• Saraighat Rail-cum-Road Bridge, Guwahati, Assam
Projects Completed / Commissioned
• Madras Peripheral Ring Road Project
• RRTS Delhi-Meerut slab tracks: entire section of mainline 182 TKM completed and in commercial operation
• Western Dedicated Freight Corridor (WDFC) Signalling and Telecommunication - 17 commissioning of Jawaharlal Nehru Port Trust (JNPT) to Vaitarna section (103 km)
• Central Organisation for Railway Electrification (CORE) Package EPC-6 - 1,200 TKM - COREs largest electrification project (Rajasthan)
Significant Initiatives
• Automated steam curing system to produce track slabs, with digital temperature monitoring and automatic flow control
• Modular formwork for pier table at the Meghalaya- Assam Bridge Project, achieving reduced cycle time
• Remote-controlled vibratory roller - successfully implemented in a mini tandem vibratory roller
• Adoption of next-generation construction methods, including precast plinth track system (patent submitted) and precast cylindrical foundation for Overhead Equipment (OHE) mast
• Minor Bridge General Arrangement (GA) drawing preparation fully automated, enabling a highly efficient workflow and securing RBGs first copyright
• Customised automation module for civil infrastructure design platforms, enabling rapid drawing generation with improved quality and a 75% reduction in preparation effort
Outlook
Domestic
Roads, Bridges & Formations (RBF)
The budgetary allocation for MoRTH for 2026-27 stands at I 3.09 lakh crore, reflecting a y-o-y increase of 7.9%.
A large portion of the total allocation, approximately I 1.87 lakh crore, has been dedicated to NHAI for capital expenditure on roads and highways, an increase of around 10% compared to the revised estimate of I 1.70 lakh crore for 2025-26.
The roads segment has a potential market size of approximately I 3 lakh crore, while bridges represent a potential market of around I 80,000 crore. These projects are expected to be bid largely by state governments, the central government and private sector participants.
The government has planned urban decongestion through ring road projects, covering approximately 4,000 km over the next five years.
The government is focusing on the development of second airports for capacity expansion in major cities, viz. Chennai, Pune and Bengaluru. In addition, airside capacity expansion is expected at Hyderabad and Nagpur among the major public-private partnership (PPP) airports.
The government has also announced plans to expand the expressway network by approximately 25,000 km over the next five years.
Railways Business Group (RBG)
The National Rail Plan (NRP) outlines a structured roadmap for the development of a future-ready railway network by 2030, with a cumulative capital investment of approximately I 30 lakh crore. In line with this long-term vision, the Union Budget 2026-27 has provided an allocation of I 2.93 lakh crore to Indian Railways. The allocation remains broadly at par with the previous year, reflecting sustained policy support for capacity augmentation, network expansion and modernisation of railway infrastructure.
With the progressive execution of the Mumbai-Ahmedabad HSR corridor, the government has announced seven new HSR corridors in the Union Budget 2026-27, identified as key growth connectors. These corridors are intended to strengthen regional connectivity, enhance mobility efficiency and support economic development.
HSR corridors announced for implementation are
(i) Mumbai - Pune , (ii) Pune - Hyderabad, (iii) Hyderabad - Bengaluru, (iv) Hyderabad - Chennai, (v) Chennai - Bengaluru, (vi) Delhi - Varanasi, (vii) Varanasi - Siliguri
Indian Railways has also initiated the upgradation of the existing electrification system to 2x25 kilovolt (kV) traction to facilitate higher operating speeds, increased haulage capacity and improved system efficiency on high-density routes. Upgradation works are currently under way on the Delhi-Mumbai and Delhi-Kolkata corridors, while tendering activities for other identified routes are in progress.
In addition to the High-Density Network, other routes across all zonal railways are also planned for upgradation to 2x25 kV traction.
On the safety front, Indian Railways has continued to focus on the implementation of KAVACH - the Automatic Train Protection (ATP) system.
In the freight segment, the Union Budget has announced a new Dedicated Freight Corridor connecting Dankuni in the East to Surat in the West, spanning more than 2,000 km. The proposed corridor is envisaged as a key multimodal freight initiative aimed at improving logistics efficiency and enabling environmentally sustainable freight movement. Collectively, these developments are expected to support sustained activity levels in the railway sector and reinforce long-term growth prospects.
International
RBF
Several mega infrastructure projects are planned across West Asia, with countries such as Saudi Arabia, under Vision 2030, prioritising large-scale investments in infrastructure development, including highways and airports.
RBG
The strategic focus continues to remain on neighbouring geographies, as well as the ASEAN , West Asia and North Africa (MENA) regions, where rail infrastructure development is witnessing increased policy support and investment momentum. These regions offer opportunities across urban transit, intercity rail and HSR segments.
In West Asia, rail and metro infrastructure is receiving renewed policy and investment support. Over the next five years, opportunities are expected to be driven largely by urban transit and intercity rail projects, including HSR, metro and Light Rail Transit (LRT) projects.
In the ASEAN region, several railway and urban rail projects are expected to be developed over the next few years. Following recent increases in infrastructure budgets, governments across the region have outlined ambitious plans to expand urban and intercity rail networks.
The ongoing execution of the rail project in Jakarta is expected to further strengthen the Companys presence in the ASEAN region and enhance its positioning to pursue additional opportunities as the regional rail market continues to evolve.
Heavy Civil Infrastructure
Overview
The Heavy Civil Infrastructure (HCI) business is a market-leading EPC platform with deep execution capabilities across critical civil infrastructure sectors that underpin Indias long-term economic growth and development agenda. The business segments include:
a) Metros, High-Speed Rail (HSR) & Semi HSR
b) Urban Tunnels
c) Hydel & Tunnels
d) Nuclear
e) Ports & Harbours
f) Defence Infrastructure
The business has a strong domestic presence and has expanded its footprint in West Asia, undertaking projects of significant scale and technical complexity with the capability to deliver both EPC and turnkey solutions.
The domestic market continues to contribute a substantial share of the business overall revenue.
The business derives its competitive edge due from its dedicated in-house design and technical centres, competency cells, fabrication facilities, specialised training centres supported by a strong resource base comprising
a skilled workforce, a deep pool of talented employees, and comprehensive fleet of plant and machinery suited to complex execution requirements.
Metros, HSR & Semi-HSR
L&Ts Heavy Civil Infrastructures urban transit business is a key contributor to the development of modern urban landscapes through the delivery of advanced mass-transit solutions. With expertise in designing, engineering and construction of HSR, semi HSR, metro rail systems, and related infrastructure, the business addresses the growing demand for efficient urban mobility. Operating across challenging terrains and remote locations, its capabilities extend to metro rail projects across multiple countries, reflecting its ability to meet the evolving requirements of modern cities. This depth of experience positions the business as a trusted partner in developing resilient urban transit infrastructure, with a footprint across four geographies and 19 executed and ongoing projects.
In the HSR segment, the business is executing multiple packages on Indias first HSR corridor connecting Mumbai to Ahmedabad. A significant portion of the HSR from Vapi to Vadodara has been handed over to the customer for commissioning. Execution in the Maharashtra section continues to progress towards sequential completion and handover. The business is also expanding its international footprint in this segment.
Urban Tunnels
The business executes end-to-end tunnelling solutions for road and highway projects in challenging urban environments, leveraging advanced technologies like New Austrian Tunnelling Method (NATM) and cut-and-cover techniques to ensure high standards of safety and precision. In the Urban Tunnels segment, the business has successfully completed the Mumbai Coastal Road Project and is currently executing the countrys largest urban road project (Orange Gate to Marine Drive) in Mumbai. The business has also signed a Memorandum of Understanding (MoU) with the MIT World Peace University to facilitate the training and development of employees working in tunnel projects on rock mechanics, tunnelling and allied excavations.
Hydel & Tunnels
The Hydel segment offers comprehensive turnkey solutions encompassing civil works and hydro-mechanical works for hydroelectric dam, barrages, pumped storage plants (PSPs) and complex irrigation projects. The business is currently executing projects in Madhya Pradesh, Assam, Arunachal Pradesh, Uttarakhand, Jammu & Kashmir, Rajasthan, Sikkim and Bhutan. In the Tunnels segment, tunnelling has been completed for two major rail tunnel packages connecting Rishikesh to Karnaprayag.
Nuclear
The nuclear segment undertakes civil works, mechanical supply and erection activities for nuclear power plants. The business has developed full-scale expertise in the execution of Pressurised Heavy Water Reactors (PHWRs), Light Water Reactors (LWRs) and Natural Draft Cooling Towers (NDCTs). Currently, the business is engaged in executing nuclear power projects and associated facilities across Tamil Nadu, Maharashtra and Madhya Pradesh. The business also executed critical civil and balance of plant packages at the Rajasthan Atomic Power Station (RAPS), including NDCTs and associated cooling water infrastructure.
Ports & Harbours
This segment has extensive expertise in constructing greenfield ports, shipyard structures and seawater intake systems along the countrys coastline. It specialises in offering comprehensive construction solutions for various marine infrastructure elements that include breakwaters, berths, jetties, wharves, dry docks and shore protection structures. Currently, the business has a presence in Tamil Nadu, Kerala and Andhra Pradesh, and has successfully delivered a project in Maharashtra.
Defence Infrastructure
This segment offers single-point EPC solutions from concept to commissioning for various defence civil establishment infrastructure facilities in India.
L&T GeoStructure
L&T GeoStructure Private Limited, a wholly-owned subsidiary, is a pioneer in the ground engineering space and is engaged in foundation and ground improvement- related projects. It has a strong, professional and specialised team with knowledge of design, equipment and methods to execute and supervise sophisticated foundation works. The business has expertise in deep piling and diaphragm walls, multi-cellular intake wells for river-linking, marine terminals with berths, jetties and deep cut-off walls.
Business Environment
The heavy civil infrastructure sector is in a structural upcycle, driven largely by government-led capital expenditure, resilience-focused investments and long-term economic development goals.
Public infrastructure - including roads, rail, utilities, ports and water - continues to outperform private construction, sustained by fiscal support and the implementation of strategic national programmes.
Metros, HSR & Semi-HSR
India adds 10 million urban residents annually, intensifying demand for mass transit. In this context, the metro rail segment is one of the most stable and policy supported infrastructure sub sectors, driven by rapid urbanisation,
climate commitments and sustained government funding. India has expanded its metro rail network nearly four times in the last decade, now operational in more than 20 cities, making it the third-largest metro network globally by length. Tier II and Tier III cities (Indore, Bhopal, Agra, Kanpur, Meerut, Patna, Kochi) are now active metro markets, expanding beyond the original Tier I city focus.
HSR and semi HSR are positioned as productivity multipliers. Indias rail strategy deliberately prioritises semi HSR for scale and affordability, while HSR remains a technology led pilot with long-term positioning value.
Urban Tunnels
The country has been making significant strides in developing urban tunnels to improve connectivity and reduce traffic congestion. These projects are part of Indias broader strategy to modernise its infrastructure while ensuring sustainable urban development.
Hydel & Tunnels
Hydropower is regaining strategic relevance in Indias energy transition, not primarily as a bulk energy source, but as a grid balancing and storage solution. Indias installed hydropower capacity stands at 42 GW, with another 15 GW under construction and capacity expected to reach 67 GW by 2031-32.
The government is taking steps towards increased investments in non-carbon energy sources, including offshore wind, hydel power, nuclear power and pumped storage plants (PSPs). Among these, PSP projects are regarded as a priority energy storage solution to support the achievement of energy transition objectives. The Indian government has introduced a new framework to expedite the development of PSPs. Key aspects of this framework include streamlined approvals, improved site allocation processes and incentives for private sector participation.
The governments prioritisation of mega hydel projects in the north-eastern states and Jammu & Kashmir further signals a favourable medium-term business environment.
Nuclear
Nuclear power in India is shifting from a marginal contributor to a strategic baseload anchor for the electricity grid. The SHANTI (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India)
Act fundamentally reshapes the business environment and overhauls Indias nuclear governance by permitting private sector participation in nuclear power generation and introducing a graded liability structure.
Nuclear power capacity is expected to increase from 8,200 MW in 2025 to 22,480 MW by 2032. Under the Viksit Bharat initiative, India has set an ambitious target to achieve 100 GW of nuclear power capacity by 2047.
By 2026-2031, the pipeline consolidates into three clear streams: (i) Fleet mode indigenous PHWRs (700 MW),
(ii) Limited imported large reactors (VVER / EPR),
(iii) Fast breeder transition and SMR pre deployment
India aims to develop at least five indigenously designed and operational Small Modular Reactors (SMRs) by 2033 under the Nuclear Energy Mission. The countrys nuclear development strategy spans multiple technology pathways:
(i) Bharat Small Reactors (BSRs) — 220 MW PHWR based systems intended for captive industrial decarbonisation;
(ii) SMRs as a reactor class under which indigenous designs are being developed by Bhabha Atomic Research Centre (BARC); and (iii) advanced reactor technologies such as high temperature gas cooled reactors and molten salt reactors.
Ports & Harbours
Ports had moved from being a part of the supporting logistics infrastructure to becoming strategic national assets that are embedded in: (i) Global supply chain realignment, (ii) Export led manufacturing, (iii) Energy transition (green fuels - hydrogen), (iv) Defence, shipbuilding and maritime security.
Nearly 95% of Indias trade by volume and 70% by value moves by sea, making ports central to economic strategy.
Defence
In the Union Budget 2026-27, I 7.85 lakh crore has been allocated to the Ministry of Defence, marking a more than
15% increase over the previous year. The government is focusing on building new capacities and upgrading existing defence infrastructure with increased budget allocations. This is expected to lead to opportunities in various defence infrastructure projects.
International
The business is exploring growth opportunities in West Asia and SAARC regions across metro rails, HSR, urban tunnels, defence infrastructure and ports & harbours.
Major Achievements
Major Orders Won
• Dubai-Abu Dhabi HSR: Design-and-build contract for civil works and stations for the Etihad HSR project
• Riyadh Metro project Line 2 Extension: Design and construction of an elevated viaduct of 1.3 km and an underground tunnel of 7.1 km, with two elevated and three underground stations
• 3,000 MW Saidongar-1 Karjat PSP: The project features two reservoirs - an upper reservoir on a hilltop and a lower reservoir - with advanced civil works including dams, tunnels and an underground powerhouse
• 1,500 MW Bhavali PSP: The project features two reservoirs - an upper reservoir and a lower reservoir - connected through advanced tunnels and an underground powerhouse
• KKNPP- 5 & 6 Mechanical: Erection of nuclear reactor systems, turbine systems including generators & condensers, seawater systems, polar & trestle cranes; and other related systems and equipment along with accessories, piping, supports, metal structures, painting, anti-corrosive coating, insulation and testing in various buildings and structures of KKNPP-5 & 6
• LIGO: Engineering, design, detailing, construction, fabrication, supply, installation, testing and commissioning of civil infrastructure including area development and vacuum infrastructure for the LIGO India Observatory
• Sharjah University Station: Design-and-build contract for passenger stations and civil works package (station building, training crew facility building, ancillary building, pump room, parking and connecting roads)
Key Projects Completed
• Dabhol Breakwater Project inaugurated in May 2025
• Thane Creek South Bridge inaugurated in June 2025
• MMRC UGC-01 inaugurated in October 2025
• CMRL Phase-2 C3 EV01 (Okkiyam Maduvu Highway Bridge) inaugurated in January 2026
• RRTS Package 7 inaugurated in February 2026
Other Key Achievements
• RVNL-2: Record completion of 504.2 m of RCC tunnel lining in a single month with a single gantry
• Orange Gate: In-house design of a larger-diameter tunnel (11 m)
• CMRL ECV-02: Indias longest 33 m U-girder erected
• KKNP-3 & 4: Erected Indias largest, first-of-its-kind containment dome liner
• Agra Metro: First-of-its-kind double T-girder - design & construction
• Gandhi Sagar PSP: Achieved 58,950 cu.m. concrete in a single month
• DC-09: Stacked tunnel from Hauz Rani to Neb Serai Station (12 m wide) — the first multi-level tunnelling project in L&T and DMRC
Significant Initiatives
• Ground improvement at the Mountain Tunnel-1 portal zone (MAHSR-C3) ensured stability and safety in challenging geological conditions
• Prestressed precast segmental hollow piers enable efficient construction with reduced material consumption and improved durability
• Implementation of a real-time bridge health monitoring system at Atal Setu enhances structural safety and lifecycle management
• Real-time strength monitoring of concrete using maturity meters ensures timely quality assessment and optimised construction cycles
Outlook
The Union Budget FY 2026-27 reinforces Indias infrastructure-led growth trajectory, with a continued thrust on capital expenditure, expansion of public-private partnerships and the introduction of mechanisms such as the Infrastructure Risk Guarantee Fund to crowd in private investment, collectively unlocking a multi-trillion-rupee project pipeline across core sectors. Policy momentum in clean energy and baseload capacity — including the scale-up of PSPs with eased regulatory norms, a strengthened nuclear programme under the SHANTI framework with targeted investments in SMRs, and a broader power sector roadmap emphasising reliability and storage — augurs well for the respective business units.
In addition, continued investments in urban mass transit and maritime infrastructure are also expected to support continued business momentum across metros, tunnels and port development.
Indias Net Zero 2070 agenda and supportive clean energy policies are expected to create opportunities for the business across the hydro, nuclear and pumped storage segments. These factors, together with improved domestic execution frameworks and ongoing international opportunities in West Asia, are likely to support stable medium-term business growth.
Power Transmission & Distribution
Overview
The Power Transmission & Distribution (PT&D) business vertical is a leading EPC player providing technology-driven, end-to-end solutions that support reliable and efficient power delivery across a broad mix of generation sources.
It offers integrated EPC services and related digital energy solutions, covering the development of smart and efficient transmission & distribution (T&D) networks through to last-mile electrification. The business serves utilities, energy developers and industrial and infrastructure customers across 30 countries in the SAARC, ASEAN, West Asia,
Africa, North America and CIS regions.
The business is broadly organised into T&D and Digital Energy Solutions (DES) businesses.
The Transmission & Distribution business caters to various T&D utilities and developers along with bulk power consumers such as metros and airports in creating the following infrastructure:
• Substations: Turnkey solutions for Extra-High Voltage (EHV) air-insulated and gas-insulated substations up to 1,200 kV, including Flexible AC Transmission Systems (FACTS) such as Static Synchronous Compensators
(STATCOMs) and Static VAR Compensators (SVCs), digital substations and EHV cable systems
• Transmission Lines: Complete EPC solutions for overhead transmission lines, supported by digitally enabled tower fabrication units with a combined capacity of over 1.1 lakh tonnes per annum
• Power Distribution: EPC services span urban and rural electrification, strengthening of high- and low-voltage distribution networks, power quality enhancement and advanced distribution management solutions
The Kancheepuram facility also has a state-of-the-art Tower Testing and Research Station, providing design and testing services to clients in over 30 countries.
Geographically, the key operating regions include India, Saudi Arabia, the UAE and the wider GCC region. The business also has a strong presence in Africa, ASEAN and CIS regions.
The business has established a strong reputation in West Asia among utilities and energy companies across Saudi Arabia, the UAE, Oman, Qatar, Kuwait and Bahrain, having executed several marquee projects and maintaining a significant share of annual T&D project awards.
Larsen & Toubro Saudi Arabia LLC (LTSA), a wholly-owned subsidiary, undertakes engineering, construction and contracting services in the T&D segment in Saudi Arabia.
In Africa, the business has executed landmark projects across Algeria, Egypt, Morocco, Kenya, Ethiopia, Tanzania, Uganda, Botswana, Mozambique and Malawi, and continues to expand its presence in Western and Northern Africa, including Guinea, Cameroon and Tunisia.
In the ASEAN region, L&T is an established T&D player with a portfolio of prestigious projects across multiple countries.
The Digital Energy Solutions arm provides global consulting and digital solutions through a proprietary platform and a suite of software products. Its offerings include hybrid energy management systems, control room and substation automation, grid-edge solutions and power system cybersecurity. Driven by advanced algorithms and simulations, these solutions enable customers across India, West Asia and the Americas to build resilient, future-ready power systems.
The PT&D business continues to focus on delivering high standards of reliability, availability and efficiency in T&D networks while supporting evolving energy transition requirements.
Business Environment
The T&D sector in the West Asia continues to present a strong growth opportunity, supported by sustained investments in grid infrastructure. The region is witnessing accelerated deployment of renewable energy (RE) capacity as part of energy transition and diversification strategies.
This is driving the need for robust grid integration, expansion of high-voltage transmission corridors and development of substations to support large scale intermittent power flows. These factors have created a favourable business environment for growth in substation and transmission line projects across West Asia.
In India, several trend-setting orders related to grid digitalisation have been awarded, reflecting the early stages of a broader transformation and modernisation of the distribution system. Over the medium-term, such initiatives are likely to enhance the networks ability to manage an increasingly complex generation mix, alongside rising RE penetration. The governments continued efforts towards improving the transmission infrastructure for evacuation of power from RE sources has also supported the finalisation of major Tariff Based Competitive Bidding (TBCB) schemes.
Major Achievements
Major Orders Won
• ±800 kV Double Circuit High Voltage Direct Current (HVDC) transmission link in Western India
• 765 kV transmission line for energy transfer from RE Zones in Southern India
• Implementation of SCADA, Smart Technology Integration along with augmentation of power distribution networks for multiple distribution companies (discoms)
in I l++ar Prarlnch
• 3 numbers of 380 kV substations and 5 transmission line packages for grid expansion in Saudi Arabia
• 16 substations of various voltage levels in UAE and 10 substations in Kuwait
• 2 transmission lines for evacuation of power from RE source in Qatar
• 3 packages of 400 kV grid stations and associated transmission lines in Oman
• 500 kV overhead transmission line along with 3 new switching stations and bay extension works in 2 existing substations to evacuate power from wind power generation plants in Uzbekistan
Projects Completed and Commissioned
• 5 packages of 765 kV transmission line projects in Gujarat and Rajasthan
• 765/400 kV gas insulated substations (GISs) in Gujarat, Telangana and West Bengal
• 6 distribution projects under the Revamped Distribution Sector Scheme (RDSS) for improving power quality
and reliability
• 3 substations and 328 km of overhead transmission lines in Saudi Arabia
• 13 substations and 138 km of overhead transmission lines across UAE, Kuwait and Oman and offshore substation projects
• 1 substation and 458 ckm of transmission lines in Africa
• 2 substations and 76 km of overhead transmission lines in ASEAN region
Significant Initiatives
The business has been granted a patent for a work methodology for the hot-dip galvanising process using Compressed Biogas (CBG) fuel. The process reduces the dependence on fossil fuel and lowers the carbon footprint.
Several projects across West Asia have been completed ahead of schedule due to effective project management, digital adoption and close client coordination.
Outlook
The T&D business continues to operate in a favourable environment, supported by strong structural drivers across both international and domestic markets.
International
West Asia is witnessing a shift from planned expansion to execution, with multiple in-country and cross-border interconnection projects progressing across the GCC. Investments are focused on enhancing grid resilience and integrating RE, driving demand for high-voltage transmission systems, including HVDC corridors and FACTS technologies.
Simultaneously, economic diversification initiatives — such as new cities, industrial ecosystems and digital infrastructure — are creating new demand centres. The increasing scale of data centers and emerging applications such as artificial intelligence are further reinforcing the need for reliable and high-quality power networks.
Selective participation in markets across Africa, ASEAN and CIS countries, particularly in renewable-linked projects, is expected to provide incremental growth opportunities.
Domestic
The sector remains well positioned, driven by accelerating RE capacity addition and the corresponding need for an efficient evacuation infrastructure. Opportunities are supported by TBCB projects, expansion of 765 kV transmission networks and development of HVDC corridors for bulk power transfer. The governments continued focus on inter-regional transmission capacity, grid digitalisation and the next phase of distribution sector reforms is expected to further strengthen the opportunity pipeline.
A strong order book and visibility of prospects support a constructive business outlook. Backed by deep engineering expertise and in-house software development capabilities, the PT&D business is able to deliver a wide range of advanced physical and digital solutions at scale — including network-wide energy management systems, intelligent power distribution systems and dynamic reactive power compensation — thereby strengthening its competitive positioning in the marketplace.
Renewables
Overview
The Renewables business has evolved into an integrated EPC service provider for GW-scale solar PV, energy storage and hybrid renewable projects. The business is among a select group of firms with proven capabilities across a wide range of module technologies, mounting structures and contour-based solutions for challenging terrains and storage configurations. The business serves renewable energy (RE) developers, utilities, industrial and infrastructure customers across India, West Asia and CIS regions, with potential expansion into ASEAN and Africa.
The business has a well-established client base and has emerged as a preferred go-to partner for GW-size RE projects in West Asia, India and CIS. The business has consolidated its position as a market leader, supported by a globally diverse workforce representing 39 nationalities. This track record reflects a sustained emphasis on customer satisfaction, safety, quality and timely execution.
The business has built in-depth engineering and construction know-how to execute a broad spectrum of renewable projects including hybrid, floating and linear configurations, with technologies optimised to terrain and tracking requirements. It is also well equipped to support round-the-clock (RTC) RE requirements from emerging load hubs such as data centers and green hydrogen plants.
The capability is underpinned by its strengths across solar PV plant, battery energy storage system (BESS), energy management system / SCADA, wind and grid infrastructure
L&Ts Renewables business has scaled significantly in recent years, with its portfolio expanding to 38 GWp of solar PV capacity (from 3 GWp in 2021), 15 GWHr of BESS (from 0.02 GWHr in 2021) and 1.8 GWp of wind capacity (from nil in 2021).
Business Environment
Global commitments and improving economics are accelerating the RE transition, with renewables accounting for over 85% (692 GW) of net annual capacity additions in 2025 bringing total installed RE capacity to 5.15 TW. Tariffs continue to decline, while RE growth momentum is increasingly driven by economic viability and strong policy support.
A vibrant RE market across India, West Asia and the CIS offers significant opportunities for sustained growth. This growth is driven by larger project and package sizes that enable efficient resource utilisation and scalable expansion
Renewable projects in West Asia and CIS now extend beyond standalone PV to include Wind EPC, RTC solutions and a strong emphasis on BESS. Meanwhile, India and ASEAN markets are also transitioning towards hybrid solutions such as, PV + BESS. Floating Solar projects are another area of growth across India and ASEAN with the
business already having executed floating solar projects in India.
RE projects in India continue to face challenges related to land acquisition, Inter-State Transmission System (ISTS) connectivity and power evacuation, intense competition from smaller EPC players, e-reverse auctions, in-house EPC execution by most private developers, and policy uncertainties. The business focuses on select opportunities from public sector undertakings (PSUs), state utilities and specialised projects such as floating solar power projects and select private players.
The evolving dynamics of West Asian countries increased focus on energy security will drive a reassessment and accelerate RE adoption, providing strong growth for the business beyond what is envisioned. Evolving local content requirements across regions pose adaptation challenges, necessitating swift alignment.
Major Achievements
Major Orders Won
• 1.5 GW solar PV, 241 MWh BESS and 228 MW floating solar plants in India
• 6 GW solar PV plant EPC orders in Kingdom of Saudi Arabia (KSA)
• 800 MW solar PV plant restoration EPC order in the UAE
• 1.8 GW wind and 978 MWh BESS EPC orders in Central Asia
Projects Completed and Commissioned
• 0.65 GW solar PV, 254 MWh BESS and 56 MW in floating PV in India
• 9.4 GW solar PV, 1.2 GWh BESS and 1.7 GW Wind BoP in KSA
• 0.2 GW of solar PV in the UAE
Outlook
Renewable electricity has emerged as the preferred energy source across a wide range of applications and industries. Significant investments are being directed towards expanding RE capacity in both developed and emerging economies. Global renewable capacity has now reached 49% of the total installed capacity and is expected to double to 11.2 TW by 2030, requiring average annual additions of ~1 TW.
The GCC countries have set ambitious RE targets of ~230 GW by 2030, against ~75 GW of ongoing and completed projects. The KSA leads with a target of 130+ GW, followed by the UAE at 30+ GW by 2030. Strong pipeline visibility, government intent — including green hydrogen initiatives — and a low renewable share at ~14% of total capacity indicate substantial headroom and make these targets increasingly imperative. In parallel, data centers and interconnector projects are emerging as significant demand drivers, enabling integrated clean energy solutions across generation, storage, transmission and power-to-grid infrastructure in the region.
Renewables account for approximately 50% of Indias total installed power generation capacity, with 267 GW currently in place, and the country is targeting around 400 GW of renewable capacity by 2030. Domestic manufacturing capacity of solar PV cells is expected to expand significantly in the coming years. Achieving self-sufficiency in PV cell manufacturing will be critical to meeting Indias ambitious RE targets.
CIS countries aim to scale renewable capacity from ~6 GW installed / under-construction to 36 GW over the same period. Collectively, across the GCC, India and the CIS, the total RE opportunity exceeds 350 GW.
The business will focus selectively on certain ASEAN markets, including Indonesia, Malaysia and the Philippines. Leveraging its proven track record and established stakeholder relationships, it will also pursue select opportunities arising from the G20 Just Transition initiatives and will explore opportunities in Africa spanning grid interconnection requirements and the growing adoption of RE.
The business strong reputation and proven reliability with major developers across existing markets have reinforced its position as a market leader, driven by a high level of repeat orders. This established trust is expected to continue to drive growth across these regions and support expansion into new markets. The ability of the Renewables business to partner with developers across the full spectrum of projects - both routine and complex - distinctly positions it as a preferred partner.
Water & Effluent Treatment
Overview
The Water & Effluent Treatment (WET) business delivers integrated, end-to-end water management solutions spanning the entire water life-cycle. With core expertise in potable water supply, irrigation, wastewater and industrial effluent treatment, desalination, storage and conveyance, and smart water infrastructure, the business integrates advanced technologies with proven engineering capabilities to deliver reliable, sustainable and future-ready solutions.
Backed by its in-house Water Technology Centre (WTC), the business continues to adopt and develop cutting-edge technologies and global best practices to drive efficiency, innovation and operational excellence. The business executes large-scale, high-impact projects across India, aligned closely with national development programmes. Through consistent execution, commissioning and operation of critical water infrastructure, the business contributes to strengthening water security, expanding access to safe drinking water and modernising wastewater management.
The WET business is structured into two Strategic Business Groups (SBGs):
Domestic WET - This SBG delivers comprehensive water solutions across potable water supply, irrigation, wastewater and industrial effluent treatment, desalination and storage and conveyance within India. It is structured
into multiple sub verticals, broadly categorised as Water & Wastewater and Irrigation, Industrial & Infrastructure. The water supply business focuses on delivering potable water across the water cycle - from abstraction through intake wells, advanced water treatment, construction of pumphouses and reservoirs, transmission through 24x7 smart water networks, distribution to end users and includes initiatives to reduce non revenue water (NRW).
In the Municipal Wastewater segment, the business undertakes projects encompassing construction of pumping stations, collection and conveyance of sewage, advanced wastewater treatment plants, including high- standard sludge treatment and power generation. In the Industrial Wastewater segment, the business provides integrated water and wastewater solutions for industries including power, petrochemicals, refineries, metals, and manufacturing covering design and execution of plant water systems and effluent treatment plants, enabling industries to reuse water ensuring circularity and sustainability. Desalination vertical delivers desalination solutions designed to perform across diverse operating conditions. The Irrigation vertical designs and executes large scale irrigation infrastructure to support sustainable water use, leveraging domain expertise in the engineering and execution of mega lift irrigation and micro irrigation projects.
International WET - Water International SBG focuses on providing complete water solutions across West Asia and East Africa. This business operates through two specialised
verticals, namely, Water Treatment and Effluent Treatment, offering integrated, end-to-end solutions across the water value chain. The Water Treatment vertical delivers end-to- end capabilities in desalination and potable water projects, including intake and outfall systems, advanced treatment facilities, storage, pumping and transmission infrastructure. The Effluent Treatment vertical provides comprehensive municipal and industrial wastewater solutions, covering collection and conveyance systems, pumping stations, advanced treatment plants, energy efficient sludge management, and complete industrial effluent treatment and disposal facilities.
Business Environment
Indias economic environment in FY 2025-26 remained resilient, supported by sustained government expenditure. In the water sector, government initiatives continued to drive demand across potable water supply, wastewater treatment and irrigation segments. During FY 2025-26, mos of the projects financed through Jal Jeevan Mission (JJM) could not progress significantly as the central government had paused on funding pending review of cost escalation and delayed progress. Post the reviews, the government has extended the JJM until 2028 with a budget allocation o ~1 67,000 crore in FY 2026-27, aimed at achieving universal rural tap water coverage.
In addition, increasing emphasis on wastewater treatment and reuse, along with river rejuvenation programmes such
as Namami Gange, is expanding the scope of government initiatives beyond potable water to encompass sustainable water management and circular water economy solutions.
Increasing adoption of PPP and HAM structures, particularly in wastewater treatment projects, is improving private sector participation and long-term revenue visibility. Furthermore, deployment of digital water management solutions such as SCADA systems, IoT-based monitoring and smart metering have enhanced operational efficiency and reduced non-revenue water.
In the irrigation sector, the government continued to emphasise modernisation, efficiency and technology integration, with initiatives such as Per Drop More Crop focused on improving water-use efficiency.
Additional policy measures, including the ~1 1 lakh crore Urban Challenge Fund for urban water and sanitation projects and a five-year target to bring 100 lakh hectares under micro-irrigation, are expected to further support investment and growth across the water infrastructure ecosystem.
While these initiatives reinforce the long-term growth outlook for water infrastructure, execution-related challenges such as last-mile connectivity gaps, procedural delays and heightened scrutiny on project execution and fund utilisation, particularly under JJM, continue to persist.
In West Asia, water security is a strategic priority. Government initiatives under Saudi Arabia Vision 2030,
UAE Water Security Strategy 2036, Qatar Vision 2030,
Oman Water Vision 2040 are accelerating investments into desalination and wastewater recycling.
These countries face an acute freshwater scarcity driven by low rainfall, extreme temperatures and high salinity levels, and with a significant portion of natural water resources unsuitable for direct consumption. This has led government to significantly invest in desalination, water treatment and recycling infrastructure. Rapid urbanisation and industrial expansion have further increased demand for high quality water across domestic, industrial and commercial sectors. As a result, the West Asian water infrastructure market is projected to grow at over 8% CAGR by 2030.
The overall business faces industry-specific challenges arising from competitive intensity, manpower constraints and cost pressures. It is, however, strategically positioned for growth by pursuing technology-led opportunities and leveraging the strengths of its in-house WTC to deliver innovative and sustainable solutions.
Major Achievements
Major Orders Won
• South East Guwahati Water Supply Project, Assam - intake with 98 MLD WTP, 555 km pipeline network
• Jhunjhunu-Surajgarh Water Supply Scheme, Rajasthan
- 5,000 km pipeline network with pump houses and 170 service reservoirs
• UGPL Salandi Left Main Canal Project, Odisha - distribution system for 12,155 hectares
• Kekri-Sarwar Water Supply Project, Rajasthan - 43 km pipeline network
• Molarband STP, Delhi - sewage treatment plant with inhouse AGBR technology
Major Projects Commissioned
More than three million people benefitted with the commissioning of 13 projects during FY 2025-26. Some of the major projects commissioned and key execution milestones achieved during the year are:
• Lower Suktel Underground Pipeline Irrigation Project, Odisha
• Kundalia Irrigation Project, Madhya Pradesh
• Mohanpura Water Supply Scheme, Madhya Pradesh
• Navda to Chavand Bulk Pipeline Project, Gujarat
• Coimbatore 30.54 MLD STP, Tamil Nadu
• Water Transmission Project in Ad Dakhiliyah, Oman
• Dubai Water Supply System, UAE
Significant Initiatives
During the year, the business undertook several strategic initiatives aimed at strengthening operational efficiency, enhancing technological capability and expanding market presence.
• The business is leveraging its WTC to roll out technology- led initiatives, focused on introducing new processes and enhancing existing ones
• To strengthen its presence in technology-focused markets, a New Business Incubation Cell has been formed to focus, identify and develop opportunities in untapped segments to support sustainable growth over the longterm
• To drive productivity, quality and speed of execution, a Fast Construct Cell has been formed to promote the adoption of precast construction technologies across projects
• Real-time risk monitoring systems are being deployed across project sites, alongside the implementation of control measures and standardised control procedures across risk profiles, to enhance operational excellence and strengthen safety awareness
Outlook
Operating largely in the business-to-government segment, the business continues to be aligned with central and state government policy initiatives. Several states have advanced initiatives in 24x7 urban water supply, sewage treatment, river rejuvenation and irrigation infrastructure, focusing on sustainable water management solutions for meeting long-term demand. According to industry estimates, Indias water and wastewater sector is poised to grow at a ~CAGR
of 12% and is projected to reach ~USD 18 billion by FY 2028-29, driven primarily by the need for improved wastewater treatment and water security.
Government initiatives such as the plan to establish over 500 wastewater treatment plants by 2027 and the extension of the JJM continue to provide opportunities across both potable and treated water infrastructure. In addition, ongoing investments in large-scale river interlinking projects in Madhya Pradesh, Haryana and Rajasthan, along with irrigation expansion in Karnataka, Bihar and Jharkhand, are further supporting investment momentum across the sector. With a growing footprint in international markets, particularly in Saudi Arabia, the business is well positioned for growth, supported by technology driven strategic orders.
Looking ahead, the business remains focused on emerging opportunities across irrigation, wastewater treatment, desalination and water management. Increased investments in river interlinking, municipal water infrastructure (both potable and wastewater) and industrial wastewater management are expected to sustain a strong order pipeline for integrated water solutions. As the organisation progresses towards its Lakshya 2031 vision, strategic priorities will focus on advancing technology adoption, strengthening presence in emerging sectors, and enhancing operational efficiency and profitability. These efforts will be pursued while maintaining financial discipline and reinforcing the commitment to ESG principles, positioning the business as a leader in the evolving water management landscape.
Minerals & Metals
Overview
The Minerals & Metals (M&M) business provides comprehensive EPC solutions covering the entire value chain from mineral processing to finished metal production. Its capabilities span the full project life-cycle, encompassing engineering, procurement, manufacturing, supply, construction, erection and commissioning.
Beyond EPC, the business also offers a diverse portfolio of customised product solutions, including advanced mineral crushing equipment and plants, surface miners, material handling systems, high-speed railway construction machinery, steel plant equipment, port and shipyard cranes, and other mission-critical assemblies. These products serve a range of core industries such as mining, steel, ports, fertilisers, cement and chemical processing.
Underpinning this entire portfolio are six decades of domain expertise, in-house design capabilities, world-class manufacturing infrastructure and dedicated after-sales support — all engineered to maximise operational uptime while delivering exceptional value.
M&M operates state-of-the-art manufacturing hubs in Kansbahal (Odisha) and Kancheepuram (Tamil Nadu).
The business also runs specialised Engineering Design & Research Centres (EDRCs) in Kolkata, Chennai and Mumbai, driving continuous innovation across its operations.
Business Environment
Domestic Business
In FY 2025-26, India reinforced its position as the worlds second-largest crude steel producer, with crude steel output rising over 10% year-on-year to 168.4 million tonnes. Domestic steel consumption increased to 164 million tonnes, remaining aligned with the long-term capacity roadmap envisaged under the National Steel Policy 2017.
The domestic metals and industrial capex cycle remained resilient, supported by the Government of Indias sustained thrust on infrastructure creation.
Policy focus has also sharpened around strengthening nonferrous value chains — particularly aluminium, copper and critical elements — given their growing relevance in power networks, electrification and energy transition applications.
International Business
As part of their broader economic diversification strategies, governments across the GCC are increasingly positioning the minerals sector as a strategic pillar for sustainable growth and value creation within the region. Investments in green steel and aluminum processing are widely targeted for taking advantage of low energy costs and for the ease in setting up facilities. The region also has proven gold and phosphate reserves that are being developed to meet the growing market demands in Europe and Asia.
By virtue of access and availability to low-cost natural gas, the GCC provides opportunities for the steel industry to set up low-carbon iron hubs, serving as a transition pathway towards the production of green steel. Apart from primary metal extraction opportunities, the region is placing increasing emphasis on downstream value addition processes. In parallel, the region is also exploring the processing of new-age minerals and battery metals to address growing global demands.
The development of metallurgical projects and announcement of large scale industrial ones in the MENA region have led to a high demand for construction material; To support the growing demand, the backend of the value chain - including limestone, aggregates and raw materials for metallurgical plants - is being expanded. This trend offers opportunities for the Product business, supported by its broad and differentiated product portfolio, to scale up with breakthrough orders in the region.
Product Business
The outlook for the Product business remains robust, supported by the governments sustained focus on infrastructure development, rapid urbanisation and increased investments across core industrial sectors.
Indias continued emphasis on capital expenditure, along with policy initiatives such as the National Infrastructure Pipeline, PM Gati Shakti and Make in India, are expected
to drive long-term demand for engineered equipment and solutions.
The business is also strengthening its global footprint, with supplies of equipment to markets across Africa, West Asia, Australia and Europe.
Core product segments — including Crushing Systems, Surface Miners, Material Handling Equipment (Stacker Reclaimers & Wagon Tipplers), Port & Shipyard Cranes and Steel Plant Equipment — are expected to witness steady growth, driven by strong capital investments across cement, mining, metals, infrastructure, power, port and shipbuilding sectors.
Cement Sector
The Indian cement industry is projected to maintain a steady growth trajectory of ~6-7% CAGR over next five years, supported by strong demand from infrastructure and housing.
The countrys leading cement manufacturers continue to undertake large-scale capacity expansions, both greenfield and brownfield. The industry is expected to add ~50-60 MTPA capacity in FY 2026-27, with further additions planned in subsequent years.
With its dominant market position in cement sector, the Product business is well aligned to capitalise on this growth by supplying critical solutions for mineral crushing and material handling.
Mining, Power & Steel Sector
The mining sector continues to be a key growth driver, supported by Indias push towards self-reliance in raw materials and increased domestic production of finished goods.
The National Steel Policy, which targets steel capacity at 300 MTPA by 2030, is driving significant investments by the major producers. Simultaneously, rising demand for iron ore and coal is leading to increased mining activities and capacity expansions by upstream participants.
In the power sector, while renewable energy continues to gain traction, the Government of India has reaffirmed the need for ~80 GW of additional coal-based capacity by 2030 to ensure grid stability.
FY 2025-26 witnessed increased order inflow for Surface Miners, Apron Feeders, Stacker Reclaimers, Wagon Tipplers and Coal Crushing Equipment from these sectors. The business anticipates continued momentum in order inflows, supported by both brownfield expansions and new project developments.
Construction Sector
The construction sector continues to be a critical demand driver, particularly for aggregate crushing solutions, supported by increased government spending on roads,
highways, railways and urban infrastructure. This sustained investment is expected to accelerate project execution and drive equipment demand. With the successful deployment of next-generation high-capacity crushing solutions, the business is well positioned to capitalise on emerging opportunities. Demand is expected to be further supported by the continued expansion of metro rail projects, development of expressways, and an increased focus on urban infrastructure.
Port Sector
The port and maritime sector is poised for significant expansion, driven by strategic initiatives such as the Sagarmala Programme and Maritime India Vision 2030. Container traffic is projected to grow at approximately 7-8% CAGR, supported by planned capacity additions of over 20 MTEUs in container terminals and around 450 MTPA in bulk handling capacity by 2030-31. Aligned with the governments Make In India initiative, the planned expansions are expected to drive demand for port cranes, rubber tyred gantry, rail mounted gantry and ship unloaders. Additionally, the governments renewed thrust on domestic shipbuilding and naval infrastructure is expected to generate demand for advanced shipyard equipment, including goliath cranes and electric level luffing cranes.
The Product business is strategically positioned to leverage these opportunities, supported by its strong capabilities and proven track record in port and shipyard equipment.
Major Achievements
Major Orders Won
• Won significant contracts from Tata Steel Jamshedpur covering Coke Oven Battery and H-Blast Furnace Revamp
• Order from Hindalco for the Aluminium Smelter and Aluminum Refinery at Kansariguda
• Order from Hindustan Zinc Limited for the Jumbo Cell House, Leaching and Purification facility at Debari
Key Projects Commissioned
• Successfully completed the G-BF shutdown and commissioning of LD Converters at Tata Steel Jamshedpur
• Marked a historic milestone with the first Metal Tap at Balco, Korba
• Delivered multiple landmark commissioning at Tata Kalinganagar
• Successfully commissioned HZL Debari Roaster #6, expanding smelting operations
• Successfully commissioned 12 Stackers and Reclaimers, ensuring seamless material handling operations
• Designed the first indigenously designed Hybrid Tandem Wagon Tippler — a landmark in home-grown engineering innovation
• Successful commissioning of largest capacity 1,100 TPH aggregate crushing plant at Fujairah (UAE)
Kalinganagar Coke Oven Battery Project, Qdisha
Outlook
In India, the ongoing privatisation of mining assets is attracting increased investments in mineral beneficiation and iron ore pelletisation. These developments aim to enhance the value of raw materials while producing more environment-friendly products for both domestic and export markets. Indian steel companies are progressing with their capacity expansion plans, supported by strong domestic consumption and robust margins.
In West Asia, the minerals and metals sector is becoming an increasingly attractive investment destination. The region benefits from low energy costs, investor-friendly
policies and accessible financing options. This aligns with the regions vision to diversify beyond oil with a focus on growing industries such as metals and minerals. Significant investments are being made in logistics and infrastructure projects in the UAE and Oman, particularly in expanding port facilities, transportation networks and storage capabilities. Several of these key projects are nearing completion which will further enhance the regions ability to handle growing trade in metals and minerals.
Overall, the near-term outlook remains positive, with sustained growth driven by ongoing capacity expansions, technology-led advancements and strategic investments in the global minerals and metals industry.
ENERGY PROJECTS SEGMENT
The Energy Projects segment comprises:
a) Energy Hydrocarbon - Onshore
b) Energy Hydrocarbon - Offshore
c) Energy Hydrocarbon - Offshore Wind
d) CarbonLite Solutions
The global energy sector is undergoing a significant transformation, driven by rapid technological advancements, evolving climate commitments and rising energy demand. In order to build deeper domain expertise, enhance strategic focus, accelerate growth and strengthen leadership oversight, the Energy Hydrocarbon business has been restructured effective April 1, 2025.
The Hydrocarbon business has been split into three distinct sub-segments namely Onshore Business, Offshore Business and Offshore Wind. This strategic move will enable greater specialisation,
operational agility, enhanced capabilities and better client focus and relationship to navigate the evolving energy landscape while continuing to deliver world-class solutions.
Financial performance of the segment
The Energy segment recorded order inflows of I 1,36,921 crore in FY 2025-26, registering a significant growth of 56.4% over the previous year, driven by the receipt of a few ultra-mega orders across the Hydrocarbon verticals and multiple BTG orders in the CarbonLite Solutions business. The share of international orders remained stable at 60% in FY 2025-26.
The Energy segment recorded revenue at I 54,889 crore for the year, registering a growth of 34.9% y-o-y, driven by a strong pick-up in the execution momentum, primarily in the Hydrocarbon business. The CarbonLite Solutions business also reported growth, as projects from the order book began moving into execution, although these remain at a relatively early stage. International revenues at the segment level increased to 74% in FY 2025-26, compared with 66% in the previous year, reflecting higher execution of the international order book, particularly in the Hydrocarbon business.
The segments operating margin declined to 6.8% from 8.5%, mainly due to cost pressures in few legacy jobs in the Hydrocarbon business.
Funds employed by the segment as at March 31, 2026, is negative at I 2,533 crore, compared to previous year at I 2,278 crore mainly due to receipt of customer advances from the newly awarded orders.
Energy Hydrocarbon -
Onshore
Overview
L&T Energy Hydrocarbon - Onshore Projects business delivers end-to-end solutions across Engineering, Procurement, Construction and Commissioning (EPCC). Leveraging these capabilities, the unit provides design-to- build Lump Sum Turnkey (LSTK) EPC solutions across the onshore segment.
Its diversified portfolio spans onshore oil & gas field development, processing and treatment facilities, petroleum refining, petrochemicals, fertilisers, crosscountry pipelines, chemicals, crude oil and product storage tanks and terminals, cryogenic storage / liquefied natural gas (LNG) storage tanks and terminals, coal gasification, decarbonisation initiatives, and complex composite mechanical, electrical and instrumentation (CMEI) works executed on an LSTK basis.
Business operations are supported by established engineering, procurement and project management centres located in Mumbai, Vadodara and Chennai. In addition, the business operates through branches and international subsidiaries, including L&T Hydrocarbon Saudi Company LLC in the Kingdom of Saudi Arabia (KSA) and Larsen & Toubro Electromech LLC in the Sultanate of Oman (Oman).
The Onshore business has developed integrated fabrication capabilities, including pipe fabrication facilities in KSA, thereby strengthening localisation initiatives while enhancing execution efficiency. This operating model enables seamless execution across domestic and international markets.
With a proven track record of concurrent execution of multiple mega / ultra-mega projects across domestic and international markets, the business collaborates with a diverse range of technology process licensors, ensuring efficient and cutting-edge project execution.
Business Environment
The domestic economic environment remained strong during FY 2025-26, supported by policy initiatives aimed at enhancing self-reliance and energy security. Sustained investments across refinery, petrochemical, LNG, fertiliser and coal gasification sectors created a robust pipeline of opportunities. Within this context, the business operated in a stable execution environment, backed by continued spending on brownfield expansions and downstream capacity augmentation.
West Asia continued to be the primary market, driven by sustained investments in oil & gas and petrochemical infrastructure. While the overall environment remained growth-oriented, certain markets faced challenges in aligning project budgets with prevailing market conditions.
Geopolitical developments, including regional tensions in West Asia, had a limited impact in FY 2025-26, except during March, and consequently had a minimal overall effect on the performance. Notwithstanding these factors, the business maintained a resilient order pipeline, supported by strong client relationships and active participation in strategically significant projects across key geographies.
Major Achievements
Major Orders Won
• An ultra-mega order was secured from QatarEnergy LNG for the Natural Gas Liquids-5 (NGL-5) Plant and associated facilities for processing Rich Associated Gas (RAG), marking one of the largest project awards in the sector
• A large order was secured from Saudi Aramco under the Unconventional Resources Maintain Potential Program for Packages 28 and 29
• A major order was secured from Bharat Petroleum Corporation Limited (BPCL) for a Linear Low-Density Polyethylene (LLDPE) / High-Density Polyethylene (HDPE) Swing Unit, comprising two trains of 575 kilo tonnes per annum (KTPA) each, at BPCLs Bina Refinery in Madhya Pradesh
• A large order was secured from Petronet LNG Limited for the EPC of LNG and ethane double-wall storage tanks, with capacities of 1,70,000 cubic metres and a Propane
double-wall storage tank of 1,40,000 cubic metres, at the Dahej Petrochemical Complex in Gujarat
• A large order was secured from Bharat Coal Gasification & Chemicals Limited for the Coal-to-Nitric Acid and Ammonium Nitrate Project and the Ammonia Synthesis Project at Lakhanpur, Jharsuguda District, Odisha
Key Projects Completed / Under Execution
• Successful completion and commissioning of the Jafurah Gas Compression Project Phase-1 for Saudi Aramco
in KSA
• Successful completion and commissioning of the Jafurah Export Pipeline Project for Saudi Aramco in KSA
• Mechanical completion of the Petrochemical Fluidised Catalytic Cracking Unit (PFCCU) and Propylene Recovery Unit (PRU), with a capacity of 2.9 million metric tonnes per annum (MMTPA), for HPCL Rajasthan Refinery Limited (HRRL) at Barmer
• Mechanical completion of the Atmospheric and Vacuum Distillation Unit (AVU), with a capacity of 9 MMTPA, for Indian Oil Corporation Limited (IOCL) at Barauni in Bihar
• Successful commissioning of the Residue Upgradation Facility (RUF), with a capacity of 3.55 MMTPA, for Hindustan Petroleum Corporation Limited (HPCL) at Visakhapatnam in Andhra Pradesh
Significant Initiatives
During the year, the Onshore EPC business maintained a strong focus on execution efficiency and competitiveness through focused initiatives in value engineering, digitalisation, smart procurement practices and productivity enhancement.
The business remains focused on scaling modular construction, adopting advanced work packaging and strengthening digital EPC capabilities, while continuing to emphasise strategic sub-contractor partnerships, disciplined project selection and robust risk management.
Outlook
The outlook remains positive underpinned by sustained and increasing investments across the energy sectors in India and West Asia.
In India, continued investments in refinery expansion, petrochemical integration, LNG infrastructure, coal gasification and fertiliser projects are expected to drive steady demand for EPC services.
In West Asia, despite geopolitical uncertainties, the market remains resilient, with a strong pipeline of projects across oil & gas, LNG and petrochemicals. Major projects across KSA, Oman, the United Arab Emirates (UAE), Qatar, Kuwait and Algeria are expected to progress, with several currently at the bidding stage, and anticipated to be awarded in the near term.
While geopolitical developments in West Asia towards the end of FY 2025-26 have near-term implications, the extent and timing of any impact will depend on their nature and duration. Nevertheless, interactions with key clients and market stakeholders indicate that project award timelines are expected to broadly remain aligned with original plans.
The industry continues to operate in an environment of heightened competitive intensity. Project execution remains influenced by cost pressures and evolving supply chain dynamics. This operating landscape underscores the need for disciplined bid strategy and execution excellence. Against this backdrop, the business is well positioned to leverage its proven execution strengths, deep technical capabilities and strong client relationships to sustain growth and pursue opportunities.
Energy Hydrocarbon -
Offshore
Overview
LTEH Offshore business is a comprehensive EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) solutions provider for offshore oil & gas projects globally. With end-to-end capabilities spanning project management, engineering, procurement fabrication, offshore installation, hook-up and commissioning, the business offers a single-point turnkey solution across the project life-cycle. Its integrated execution model, strong engineering depth and proven delivery credentials have positioned LTEH Offshore as a preferred partner for complex, large-scale offshore investments across key energy markets.
The Offshore business solutions cover the full spectrum of projects, including:
• Process Complexes, Wellhead, Tie-in and LQ Platforms
• Subsea Pipelines and Systems
• Gas Compression Modules
• FPSO Topside Modules
• Brownfield Upgrades
• Transportation and Installation Services
• Deepwater Subsea Systems
• Pre-assembled Modules for Complete Plants
• Decommissioning - Asset Repurposing and Retiring Solutions
This wide capability spectrum enables portfolio balance across project types, geographies and investment cycles.
Recognised as a preferred contractor by leading national and international oil companies, LTEH Offshores project management teams consistently deliver complex offshore projects on schedule, adhering to the highest quality benchmarks while ensuring a safe, incident-free work environment. The business has an in-house engineering division which offers value engineering solutions covering the entire project life-cycle — from concept and detailed design to commissioning.
The Offshore business operates state-of-the-art fabrication facilities at Hazira and Kattupalli in India and Sohar in Oman, collectively offering over 2 million sq.m. of yard space and an annual production capacity of 2,00,000 MT of offshore structures and onshore modules. These yards are equipped to fabricate and load out super-heavy integrated structures up to 30,000 MT. The business marine fleet includes the self-propelled heavy-lift-cum-pipelay vessel LTS 3000 and the pipelay barge LTB 300, enabling greater schedule control over offshore installation and ensuring timely project completion. The Offshore business has signed an MoU with Bluewater to collaborate on the construction, deployment and operations & maintenance (O&M) of FPSO projects.
The business has successfully delivered and executed projects across multiple regions, including India, Saudi Arabia, Qatar, Kuwait, Australia and the United States. It continues to broaden its client portfolio and geographical presence through focused strategic initiatives.
Business Environment
The capex cycle in the offshore sector is supported by rising global oil & gas consumption, necessitating the timely addition of new supply infrastructure. The sector remains structurally strong with continued growth in production and exploratory drilling spend — indicating sustained demand for platforms, pipelines and associated offshore infrastructure.
In Saudi Arabia, tendering activity moderated following several large awards earlier in the year, although new tenders continue to support production sustenance and priority developments. In Qatar, sustained investments in offshore compression platforms continue to underpin a strong pipeline of EPCIC opportunities. In the UAE, ADNOCs gas expansion and oil capacity maintenance initiatives are driving selective offshore investments.
In India, ONGCs offshore tendering activity has accelerated, reflected in recent awards, new tender issuances and the rationalisation of earlier contracting strategies.
LNG capacity expansions are further accelerating module fabrication business, while the ageing profile of existing assets is driving platform replacements, brownfield upgrades and life-extension investments to exploit remaining reserves. Consequently, the fundamentals for offshore production remain highly favourable.
Major Achievements
Major Orders Won
• Ultra-mega Offshore contract from Saudi Aramco for Zuluf Redevelopment PKG 1 & PKG 2 (CRPO 145-146) for the replacement of 15 old platforms, 2 new tie-in platform topsides, associated pipelines and modifications
• Two significant orders from Saudi Aramco (CRPO 158, 160) for 10 jackets and 2 Production Deck Modules (PDMs)
• Significant order from a new customer for Al Khafji Joint Operations - which operates field in the common offshore area between Kuwait and KSA - for EPCIC of 7 jackets
Key Projects Completed / Under Execution
• Mechanical completion has been achieved for facilities under Zuluf North & South Water Injection Facilities (CRPO 80/81)
• Successfully dispatched PAR & PAU modules for Linde - Blue H2 Project, Nederland, Texas, USA
• Successfully dispatched duly commissioned modules to Australia for CERES Project for Perdaman
• The business is in the final stage of completing 2 major ONGC projects this year, including MHN TCPP PGC BGC project and phase 8 of Pipeline Replacement project
• The business has completed Daman Upside Development Project and enabled ONGC to monetise earlier than their original plan by offering innovative solutions
• Multiple ultra-mega and mega projects are under execution and progressing well including North Field Production Sustainability Project (NFPS-4) and EPCIC 12 Package for NOC Ruya Significant Initiatives To drive productivity enhancement, the business has implemented a suite of structured initiatives designed to streamline operations and maximise output. These efforts focus on production and assembly cycle time reduction programmes and significant advancements in yard automation, including the adoption of robotic welding, automated inspection and digital work packs.
The organisations approach to Value Engineering (VE) is driven by the integration of advanced technology and collaborative processes to optimise project outcomes.
VE workshops and AR/VR-enabled design reviews help to significantly improve constructability while optimising designs.
The business is advancing digitalisation through end- to-end digital procurement and fabrication dashboards for monitoring project progress in near real-time. 4D/5D planning and drone-based yard monitoring provide unprecedented visibility and control over complex operations. Knowledge management has been bolstered by the usage of Drishti, an AI-based portal dedicated to capturing and utilising organisational learnings through simple English queries. The business has also enabled proactive real-time HSE monitoring through video analytics platforms to ensure a safer working environment.
The organisations Smart Procurement framework is built on a foundation of operational efficiency and strategic localisation. Key initiatives include the optimisation of vessel campaigns and the shift towards in-house fabrication of critical items to mitigate supply chain risks.
Outlook
External industry assessments for calendar year 2026 point to a challenging environment shaped by heightened war risks, supply chain disruptions and geopolitical uncertainties. However, rising global energy demand continues to sustain offshore investment momentum, despite the challenging operating environment.
India continues to rely heavily on energy imports, despite efforts to enhance energy security through ONGC-led Offshore E&P initiatives. Ongoing tensions in West Asia are expected to further accelerate exploration and development activities, requiring additional offshore infrastructure for oil & gas production in the country.
From a regional perspective, Saudi Arabia continues to maintain large-scale spending momentum across mega-programmes such as Marjan, Zuluf and Safaniyah, with continued investments in both greenfield developments and maintain-potential projects. Qatars ongoing LNG expansion continues to remain a key driver of EPCIC opportunities. In the near term, reconstruction and capacity augmentation requirements could further elevate demand for offshore assets.
In developed markets — including the Americas, Europe, Singapore and Australia — high labour costs and shortages of skilled workforce are accelerating the adoption of modular construction, with fabrication activities increasingly being undertaken in offshore locations.
Across Africa, Mexico and Southeast Asia, rising deepwater exploration and production activity is driving a surge in global demand for FPSOs. The Offshore business is actively positioning itself to capture these emerging opportunities.
Energy Hydrocarbon -
Offshore Wind
Overview
L&Ts Offshore Wind business is dedicated to advancing cleaner energy solutions and sustainability. The business provides turnkey EPCI (Engineering, Procurement, Construction, Transportation and Installation) services, specialising in both offshore HVAC/HVDC substations and Wind Turbine Generator (WTG) foundations encompassing both fixed and floating worldwide.
The business consists of a strong multidisciplinary team, industry partnerships and a resilient supplier network supported by three state-of-the-art fabrication facilities across India and Oman — all operating under a Think Global, Act Local ethos. Key operational hubs include the project management centre in Mumbai, the engineering & technology centre in Chennai, and the centre of excellence in Sharjah. Fabrication capacity is expected to be further strengthened by the Kattupalli Upgradation Project (KUP), which is being transformed into a specialised Wind Hub.
By virtue of gaining significant traction with offshore wind developers and transmission systems operators in Europe, the business formalised its European entry in FY 2025-26 through the incorporation of L&T Energy Offshore Wind
B.V. in The Netherlands.
Business Environment
The renewable energy sector is witnessing strong growth, fuelled by rising clean energy demand and a supportive policy environment. Offshore wind capacity reached approximately 85 GW by the end of 2025, with around 19 GW expected to come onstream in 2026, thereby crossing the 100 GW milestone. Energy security concerns and net- zero commitments are key drivers of this expansion. Europe remains the most developed offshore wind market, led by the UK, with Germany and The Netherlands emerging as key hubs. In Asia, markets such as Taiwan, Vietnam, Japan and South Korea are progressing steadily. India is expected to become a significant offshore wind market, offering L&T an advantage anchored in its strong local ecosystem.
Despite headwinds such as regulatory challenges and supply chain constraints - including limited OEM manufacturing capacity and extended lead times - the industry is expected to demonstrate resilience and sustain steady growth.
Major Achievements
Major Orders Won
• Ultra-mega Order of HVDC for offshore wind programme of TenneT, the Dutch German transmission system operator
• Pre-FEED engagement for foundations for RWEs Dogger Bank South Project
• A technical collaboration with an OEM for its HVDC Platform Cooling System Study
Significant Initiatives
The business has developed a robust ecosystem through strategic partnerships with HVDC/HVAC electrical technology suppliers, alliances with floating foundation technology providers, and has collaborated with fabrication yards across geographies to enhance local content. To support increasing demand, the business is investing in automation capabilities and positioning the Companys manufacturing facility on the east coast as key driver of future growth.
Outlook
Global offshore wind installations are projected to reach around 240 GW by 2030. Leveraging its core strength in EPCI of HVDC/HVAC offshore substations, the business is well positioned to capitalise on the opportunities that could arise across Europe and the Far East. These geographies remain near-term priorities, while markets such as India and the broader Asia Pacific region remain under active consideration. North American markets, including the United States and Canada, are also being evaluated from a strategic perspective as regulatory frameworks mature and market conditions become more conducive.
CarbonLite
Solutions
Overview
L&T Energy - CarbonLite Solutions (LTECLS), erstwhile L&T Energy - Power, is a leading EPC contractor offering turnkey solutions for the BTG (boiler-turbine-generator) island components of coal-based power plants, encompassing design, engineering, procurement, manufacturing, construction and commissioning. In addition, the business aims to leverage its existing expertise to develop and deliver solutions for nuclear projects (turbine-generator island) and for pumped storage plant turbine-generator systems.
The business has integrated state-of-the-art manufacturing facilities at Hazira (Surat) for ultra-supercritical and supercritical boilers, turbines and generators, pulverisers, axial fans, air preheaters and electrostatic precipitators.
The business has the following joint venture (JV) companies within its fold:
L&T-MHI Power Boilers Private Limited, a JV with Mitsubishi Heavy Industries (MHI), Japan - worlds leading power equipment maker, for the design, manufacturing, erection and commissioning of ultra-supercritical / supercritical boilers, up to a rating of 1,000 MW
L&T-MHI Power Turbine Generators Private Limited, a
JV with MHI and Mitsubishi Electric Corp. (MELCO), Japan, for the manufacture of steam turbine and generator (STG) with a capacity ranging from 660 MW to 1,000 MW. The company is engaged in design, manufacture, erection and commissioning of ultra-supercritical / supercritical turbines and generators
L&T Howden Private Limited, a JV with Howden Group (part of Chart Industries Company, USA), is in the business of regenerative air preheaters and variable pitch axial fans for power plants
L&T-Sargent & Lundy Limited, a JV with Sargent &
Lundy LLC, USA, is engaged in the business of providing design, engineering and project management services for power projects
Business Environment
Central Electricity Authority (CEA) has projected a requirement of approximately 307 GW of coal- and lignite- based generation capacity by FY 2034-35, reflecting the need for reliable base-load power to support sustained economic and industrial growth. In line with this outlook, power producers across the public and private sector are developing new coal-based capacity. During FY 2025-26 alone, coal-based projects with a cumulative capacity of approximately 22 GW were awarded, underscoring continued investment momentum in the segment.
Major Achievements
Some of the major achievements by the business during the year include:
• High-value orders received from leading independent power producers (IPPs) for multiple 800 MW ultrasupercritical power projects in Bihar, Madhya Pradesh and Chhattisgarh
• Commercial operation declared for the first unit of 2x660 MW ultra-supercritical power project for a central utility in Bihar
• Commercial operation declared for the second unit of 3x660 MW ultra-supercritical power project for a central utility in Uttar Pradesh
• Commercial operation declared for the second unit of 2x660 MW ultra-supercritical power project for a central utility in Uttar Pradesh
• Operational acceptance certificates received for 11 units of Flue Gas Desulphurisation (FGD) for central utility projects located in Madhya Pradesh, Chhattisgarh,
Odisha and West Bengal
Significant Initiatives
To improve profitability and ensure on-time execution, the business is undertaking a range of operational excellence initiatives, including the implementation of an integrated project management system (IPMS) and a digital material thread.
The IPMS provides a centralised repository of data across core functions such as EPC along with dashboards of other key functions including quality and environment, health & safety (EHS). The digital material thread initiative provides real-time visibility of material at various phases in the lifecycle, from engineering till erection. The IPMS and digital material thread have seamless data exchange with systems like SAP leading to unified data platform.
Apart from these major initiatives, digital and analytical levers such as AI (including ML), IoT-isation, immersive technologies like virtual reality, building information modelling (BIM), drones, process automation, value engineering through automation, business intelligence and analytics are now a part of the day-to-day operations of the business.
Outlook
As Indias economy continues to expand — having emerged as worlds third largest economy in purchasing power parity — sustaining growth momentum and supporting an increasingly large industrial base will require a strong and enduring focus on the countrys energy security.
Coal-based power continues to contribute approximately 70-75% of Indias total electricity generation and remains central to the countrys power system. The requirement for dependable base-load capacity, energy security imperatives and sustained industrial and infrastructure- led demand growth underpin the continued relevance of coal-based generation, even as renewable capacity scales up rapidly and India progresses toward its long-term climate commitments.
HI-TECH
MANUFACTURING
SEGMENT
The Hi-Tech Manufacturing segment comprises:
a) Heavy Engineering
b) Precision Engineering and Systems
The Hi-Tech Manufacturing segment recorded order inflows of I 8,366 crore during FY 2025-26, registering a decline of 54.2% over the previous year, primarily due to high base in the previous year. The share of international orders increased to 32% in the current year from 21% in FY 2024-25.
Human
Resources
L&Ts human capital strategy is closely integrated with its transformation agenda, with a strong emphasis on digital capability, engineering excellence and ESG leadership. The Company is committed to building a safe, inclusive and high-performance work environment that empowers talent, prioritises well-being and fosters continuous learning in alignment with evolving business needs.
The Human Capital framework is anchored in five strategic pillars:
• Performance-driven growth with purpose and accountability
• Future-focused learning and digital capability building
• Scalable talent development for emerging business opportunities
• Diversity, equity and an inclusive culture
• Holistic well-being and workforce resilience
These pillars are aligned with L&Ts long-term strategic roadmap, reinforcing the Companys ambition to be a technology-led, globally competitive organisation. By investing in people, strengthening leadership pipelines and nurturing critical skills, human capital development remains central to sustained business success and stakeholder value creation.
Campus Hiring and Student Engagement
During FY 2025-26, L&Ts Young Professional Talent Acquisition team continued to strengthen the Groups talent pipeline by recruiting and onboarding over 2,200 Graduate Engineering Trainees (GETs) and Postgraduate Engineering Trainees (PGETs) across businesses within the L&T Group from premier institutes such as IITs, NITs and other reputed government colleges.
The Company also onboarded over 1,100 young professionals comprising MBA graduates, Chartered Accountants, Cost Accountants, Diploma Engineers and other trainee cadres. This diverse intake further reinforces the Companys position as a preferred employer for emerging professional talent within Indias engineering, technology and infrastructure sectors.
Following their onboarding, young professionals progress into Navis - a structured capability development programme for GETs, PGETs and lateral hires. The programme is designed to enhance role readiness while strengthening the retention of high-potential talent. The programme offers a 90-day to 1-year learning journey combining hands-on functional training, self-paced modules and periodic assessments.
Campus Engagement
L&Ts campus outreach extended to over 260 institutions nationwide, reflecting the Companys sustained engagement with premier engineering and management institutes across the country.
CreaTech, the Companys technology case competition for engineering students, attracted over 14,500 participants from more than 220 engineering institutions. The competition provided students with exposure to real- world engineering problems while enabling L&T to identify high-potential talent and gather innovative ideas relevant to its project ecosystem.
Similarly, OutThink, L&Ts national business case competition for premier management institutes, engaged over 6,700 students forming more than 2,200 teams from 34 leading B-schools. Together, CreaTech and OutThink expanded L&Ts campus engagement across more than 260 institutions, generating 1 crore+ digital impressions and creating a strong platform for industry-academia collaboration while strengthening L&Ts reputation as an employer of choice among Indias emerging engineering and management talent.
Talent Management • Talent Identification
L&Ts performance management system differentiates, recognises and rewards talent, while its integration with career development and succession planning ensures seamless leadership transitions. High-potential employees are identified and nurtured through Development Centres (DC) and the Technology Leadership Programme (TLP), which provide participants with clear insights into their strengths and development areas.
In FY 2025-26, over 2,000 employees were assessed through DCs, following which Individual Development Plans (IDPs) were prepared to support their personalised growth journeys.
• Talent Review
The Talent Council, comprising business heads, HR and senior executives, plays a key role in identifying and developing future leaders. Through in-depth reviews, the Council designs a personalised development plan based on each candidates strengths and growth areas. Interventions include cross-functional projects, training, leadership shadowing and coaching. A dedicated digital tool supports this process by tracking progress. This structured approach strengthens leadership capabilities and ensures business continuity.
Performance Management System (FAIR Process - Framework for linking Appraisals with Incentives and Rewards)
L&Ts continued success rests on the foundation of a high-performance culture. The performance management philosophy is based on the principles of meritocracy, entrepreneurship, teamwork and continuous learning and development. Performance Management System rewards excellence in performance through -
• Performance planning
• SMART goal setting
• Cascading of goals
• Continuous review, monitoring, feedback and coaching
• Focusing on learning, development and growth
• Fair and objective assessment of performance
ESG Linkage to Performance and KPIs
The Company recognises that long-term value creation is closely tied to its ESG performance, and therefore KRAs and KPIs linked to ESG are embedded into performance management systems. Key ESG metrics are integrated into business/project-level performance indicators and individual KRAs. The performance on these KRAs is linked to annual performance appraisals, thus reinforcing a culture of ownership and impact.
Learning & Development
Learning & Development (L&D) has emerged as a strategic growth enabler — strengthening leadership depth, improving execution predictability and accelerating enterprise-wide capability transformation. The L&D agenda is designed to help leaders and teams make decisions more effectively and efficiently, execute with discipline across risk and interfaces, and adopt digital and AI capabilities to enhance productivity, quality and long-term value creation.
Through this integrated and forward-looking approach, L&T continues to translate its legacy of learning into sustained organisational performance.
At the heart of the leadership pipeline systems will be the LEAP programmes. They represent a deliberate reimagining of leadership development at L&T, integrating best-in-class global learning experiences with a structured, enterprisewide approach to building leadership capability at scale.
The focus is not just on developing individual leaders, but on shaping an ecosystem of leadership that is agile, enterprise-minded and equipped to navigate complexity, drive transformation and sustain long-term value creation.
L&Ts L&D architecture: three leadership archetypes
To provide a consistent and scalable approach across businesses, L&Ts capability system is structured around three enterprise archetypes — Business Leadership,
Project Leadership and Technical Leadership.
• Business Leadership
Our flagship programme of Seven Steps Leadership Development and Ascent adopts an integrated approach towards development of leadership competency, and this continues to strengthen the talent bench thus ensuring a seamless transition into future leadership roles.
L&Ts Management Development Programmes (MDPs) build functional management capability through structured learning delivered with premier B-schools. Executive and Supervisory Development Programmes (EDPs and SDPs) further support leadership development in collaboration with SIBM and NMIMS.
WINSPIRE is L&Ts targeted leadership development initiative for women, designed to address distinct career inflection points through cohort-based, customised journeys for early- and mid-career professionals.
The structured programme builds capability, confidence and leadership readiness, strengthening L&Ts women leadership pipeline, with over 900 women leaders developed since its launch.
• Project Leadership
Project leadership is central to L&Ts EPC and infrastructure businesses, where success depends on rigorous planning, risk management, stakeholder alignment and disciplined execution. The L&T Institute of Project Management (IPM) anchors leadership development through structured programmes, knowledge sharing and institutional partnerships.
As project size and complexity increase, L&T has institutionalised the Project Director Academy (PDA) within IPM to build a strong and sustainable pipeline of project directors.
• Technical Leadership
Technical Leadership builds the specialist depth and site-ready capabilities critical for execution excellence. The Corporate Technology & Engineering Academy (CTEA) serves as L&Ts technical capability engine, delivering hands-on, role-based learning through advanced labs and applied environments.
The Precast Technology Lab offers immersive end-to-end exposure to precast systems, simulating real-world execution conditions. CTEA also strengthens job readiness among early-career engineers through structured programmes for PGETs, GETs and DETs, and anchors the Front-Line Supervisor (FLS) development agenda by transforming skilled workforce personnel into effective site supervisors.
In addition, L&T supports higher education through initiatives such as the Build India Scholarship, enabling engineers to pursue M.Tech. programmes in Construction Technology & Management in partnership with premier institutions.
AI-enabled workforce transformation: building enterprise AI readiness
To build enterprise-wide awareness and responsible adoption of emerging technologies, the ATLVarsity launched focussed programme, Demystifying AI & GenAI to strengthen foundational AI literacy across roles. Over 32,000+ employees have engaged in the programme, reinforcing L&Ts commitment to AI readiness at scale.
Key areas where AI / GenAI tools are used to improve L&D team productivity and providing a personalised user experience are:
• Accelerated Content Development
• Hyper-personalisation at Scale
• AI-enabled Coaching & Skill Development
HR Digitalisation Initiatives
L&T undertook a comprehensive role-based organisation structuring and digital system enablement exercise to strengthen governance, organisational clarity and enterprise-wide process integration. The initiative has significantly improved operational efficiency, governance and workforce visibility across businesses.
L&T introduced HEERA Plus, a next-generation Generative AI-powered HR platform that enhances employee experience through real-time HR support using enterprisewide knowledge and data. Complementing this, the AI- enabled Leadership Assistant empowers HR professionals and business leaders with insights on policies, workforce analytics, talent management and people decisionmaking, marking a significant step in L&Ts AI-led HR transformation journey.
To improve alignment between organisational priorities and individual performance outcomes, L&T introduced MyGoal, an AI-supported goal-setting framework that assists managers and employees in quickly defining sharper, measurable and role-aligned goals.
The Company continued to modernise its talent acquisition ecosystem through the introduction of AI-driven recruitment solutions. The organisation implemented a structured multi-stage digital selection framework comprising AI-based resume screening, intelligent candidate matching, AI-enabled assessments and AI-supported interview mechanisms to improve objectivity and role fitment.
Diversity, Equity and Inclusion
The organisation has taken significant steps to strengthen diversity, equity and inclusion through structured policies, leadership development initiatives and enabling workplace practices.
The continued emphasis on a safe workplace, with zero- tolerance approach to sexual harassment, has been reinforced through the implementation of a gender- neutral POSH policy, supported by a newly introduced Case Management System Portal that enables transparent reporting, monitoring and investigation of cases.
Sustained efforts over the years have contributed to a steady improvement in gender diversity at L&T, representing approximately 5,300 women employees across the organisation.
Employee Experience and Engagement Initiatives
L&T Ignite, a first-of-its-kind, company-wide talent platform launched this year, provided employees with a vibrant stage to showcase their diverse talents beyond the workplace. Bringing together over 1,500 participants across categories such as music, dance, art and creative expression, the initiative celebrated the multifaceted spirit of L&T-ites.
L&T Radio is a unique, in-house digital storytelling and engagement platform that brings the voice of L&T employees to life through curated podcasts and thematic series. With 170+ episodes spanning leadership journeys, business insights, wellness and employee experiences, it has evolved into a powerful medium for knowledge sharing and cultural connect across the organisation.
L&T QuizWiz is a flagship knowledge and engagement initiative that brings together employees across businesses through the spirit of healthy competition and continuous learning. From the participation of 1,500 employees in its inaugural season to over 3,600 in its fifth edition in FY 202526, QuizWiz has emerged as one of the most cerebral and anticipated fixtures in the Companys events calendar.
Hi5 Plus, L&Ts integrated gamified platform for Appreciation & Recognition and Health & Wellness, engages 30,000+ active users and has powered over 200 Stepathon, Walkathon and corporate challenges across the organisation.
As part of ensuring an enhanced onboarding experience, Pulse Engage surveys are conducted through the HEERA chatbot at critical milestones (7 days, 30 days, 60 days and 180 days) for new joiners. This year, over 8,000 lateral new hires and 2,800 campus hires responded to these surveys.
Employee Wellness: Enabling Sustainable Performance and Resilience
Over time, L&Ts wellness initiatives have evolved into an integrated, enterprise-wide ecosystem, centrally stewarded and delivered through reputed external partners. Programmes such as Mindfulness and Art of Living have been institutionalised across the organisation, complemented by Panchakosha Wellness Workshops conducted with IIT Bombay faculty, offering a holistic approach to well-being rooted in ancient Indian wisdom and modern science.
Regular workshops and training on mental health awareness, stress management and self-care techniques are conducted to help employees maintain their mental wellbeing.
During the year, the Company facilitated mental health counselling services both internally and through external providers. These services ensure employees have confidential access to counselling, mental health resources and support for both personal and workplace challenges.
Mental Health First Aider Training was conducted for two batches of 50 employees each, equipping participants to identify mental health concerns, support individuals in need and guide them to professional help.
L&T HR Conclave 2026
HR Conclave served as a powerful platform to reimagine the future of human resources, bringing together senior leaders, industry experts and HR practitioners to deliberate on building a future-ready organisation. Centred around the theme of reinventing HR for the next decade, the conclave witnessed insightful discussions around themes like Building Leaders for a 10x World, AI Curiosity to AI Advantage and Culture as a Performance Multiplier.
The event reinforced L&Ts commitment to positioning HR as a strategic driver of business excellence, a tool for fostering innovation and agility, and a commitment towards people-centric approach to scale, speed and sustainable performance.
Future Forward - HR Strategy
The HR function will continue to serve as a strategic partner to business through a forward looking approach. This will involve HR playing the role of a key enabler towards achieving the Lakshya objectives, with emphasis on strengthening leadership capacity through selective critical talent induction and grooming in-house talent to take on greater responsibilities.
Digital Transformation, Artificial Intelligence and Information Technology
Digitalisation and AI - Key to Enterprise Transformation and Resilience
At L&T, the Technology function continues to play a pivotal role in enabling business growth, enhancing operational efficiency, strengthening governance and building digital resilience. During FY 2025-26, the Group sustained its focused investments in digital platforms, AI-led innovation, cybersecurity and enterprise standardisation, in alignment with long-term business priorities and evolving stakeholder expectations.
These initiatives reinforce the Companys commitment to operational excellence, scalable growth, regulatory compliance and sustainable value creation.
The following outlines the key IT initiatives undertaken during FY 2025-26:
1. Digital Transformation, AI and Automation
The Groups Technology function intensified its focus on AI-led transformation and intelligent automation to improve productivity, decision-making and customer experience.
• Continued expansion of AI and GenAI-based use cases across business functions, including engineering, project execution, finance, HR and shared services
• Scaling of enterprise AI platforms and data foundations to support responsible, secure and reusable AI innovation
• Increased adoption of automation and workflow digitalisation driving process efficiency, accuracy and turnaround-time improvements
• Strengthening of enterprise integration and low- code / no-code capabilities to accelerate business- led digital solutions within governance frameworks
These efforts enabled faster business responsiveness while ensuring architectural consistency and risk controls.
2. Enterprise Platforms, Data and One L&T Approach
FY 2025-26 witnessed significant strides in standardisation and convergence under the overarching One L&T philosophy.
• Advancements in consolidating enterprise platforms such as ERPs, collaboration tools, identity management systems, network infrastructure and asset visibility mechanisms
• Strengthening of group-wide data and application governance
• Focus on data consolidation enabling advanced analytical capabilities, reporting and AI readiness
• Expansion of unified portals, contributing to consistent user experience, greater transparency and improved collaboration across businesses which create more streamlined, efficient and secure work environment that benefits both employees and the organisation as a whole
These initiatives support scalability, cost optimisation and improved enterprise-wide visibility. With a focus on platform-led transformation, innovation and operational excellence, the Company remains committed to delivering sustained value to its stakeholders.
3. Compliance, Governance and Risk Management
IT governance and regulatory compliance is key focus area for the organisation. The Company sustained compliance with ISO 27001:2022 and other relevant standards through ongoing controls, audits and continuous improvement initiatives. In addition,
L&T continues to strengthen its application governance, asset visibility and life-cycle management across businesses. Further, the Company has enhanced monitoring, reporting and controls to support regulatory, audit and investor requirements, ensuring transparency and accountability. These measures reinforce trust with stakeholders while reducing operational and regulatory risk.
4. Cybersecurity and Digital Resilience
With an evolving threat landscape, cybersecurity continues to be a board-level priority to prevent cyberattacks. The following measures are being taken on an ongoing basis:
• Strengthening of the Central Cyber Security Operations Centre (C SOC) to provide groupwide visibility, monitoring and coordinated incident response
• Deployment of advanced security technologies, including AI-driven threat detection, endpoint, data center, network, mobility protection and cloud security controls
• Ongoing cyber awareness and training programmes conducted across the organisation to enhance employee vigilance and preparedness
• Maintaining compliance with applicable cyber regulations
These measures reinforce trust with stakeholders while reducing operational and regulatory risk.
5. Sustainability and ESG Enablement
Technology continues to play a key role in enabling L&Ts sustainability and ESG objectives.
• Continued enhancement of digital platforms to capture, monitor and report ESG metrics, including energy, emissions, water, waste and compliance data
• Integration of ESG data with enterprise systems to support regulatory disclosures, management reporting and internal benchmarking
• Adoption of cloud and digital solutions to improve resource efficiency and support sustainability goals
Outlook and Strategic Priorities
Looking ahead, the Group Technology function will continue to act as a strategic business enabler, with key priorities including:
• Scaling AI Responsibly: Expanding enterprise AI and GenAI solutions with strong governance, ethics and security
• Deepening One L&T Adoption: Advancing One Identity, One Network, One Data, One Asset and unified digital experiences
• Industry 5.0 Enablement: Leveraging human- machine collaboration to drive productivity, safety and sustainability
• Cyber Resilience by Design: Strengthening security architectures, zero-trust adoption and future- ready encryption
• Data-Driven Enterprise: Enhancing real-time insights, advanced analytics and decision intelligence
Through these strategic investments, the Technology function will continue to support L&Ts growth ambitions, operational excellence and leadership as a digitally-enabled engineering and construction major.
1 AWARDS AND 1 ACCOLADES
The Company has been ranked as the 9 th most valuable brand in India in the Brand Finance India 100 report of 2025. During the year, L&Ts businesses have won many awards and accolades. Some of the noteworthy ones are mentioned below:
Human Resources
• Great Place to Work - certified for third year in a row
• Gold Award in the category of Excellence in AI for Learning & Development at the ET Human Capital Awards (ETHCA) 2025
• Ambition Box - Employee Choice Awards 2025 - in the categories of Top Rated Construction Companies and Top-Rated Mega Companies
• BW People HR Excellence Awards 2026 - Silver in Best Digital Learning Transformation Programme and Gold in Best Use of AI in Learning
• Recognised with Silver Award in the category of Excellence in Learning & Development by Financial Express at FE HR Awards 2025
• Recognised as one of the Top 100 Best Companies for Women in India by AVTAR & Seramount 2025 and in Conglomerate category
• Recognised as first runners-up in category of Excellence in Learning & Development at the SHRM HR Excellence Awards 2025
• Recognised as one of the Top 25 Companies for Excellence in Women in STEM at CII Awards for Women in Excellence 2025
• Recognised at the FICCI Women Empowerment Awards 2025 for DEI initiatives
Heavy Civil Infrastructure
• Infra Company of the Decade was conferred by EPC World Media Group in recognition of outstanding contribution to the infrastructure sector
• CII Design Excellence Awards at the 25 th CII Global Design Summit & Exposition saw the business secure seven top honours for Made in India designs
• MIT-WPU Excellence Award recognised achievements in road and railway tunnel projects
• National Project Excellence Award 2025 was received for the MAHSR C4 Package - in recognition of exemplary project execution
• Recipient of CII Environmental Excellence Award 2025 for initiatives in biodiversity conservation
• Sustainability Project of the Year at the Global Project Controls Awards recognised excellence in sustainable project delivery
Power Transmission & Distribution
• MEW-5 Substation Project, Kuwait awarded Power Transmission Project of the Year at MEED Awards 2025
• TLT Manufacturing Unit, Pithampur named Joint Winnei (Global Round) at IAQ Quality Sustainability Awards
Renewables
• MEED Projects Awards 2025 - Ar Rass 2 Project chosen as a National Level Winner - KSA in Power
• Middle East Clean Energy week 2025 - Amaala Utilities chosen as Best Solar Project of the Year under Hybrid category
• DEWA-VI Project was selected as Winner by Solar Quarts MENA at the 2 nd Edition of Solar Week UAE Leadership Awards 2025 - Best Solar Project of the Year (Utility)
Energy Hydrocarbon - Offshore
• National Project Excellence Award (NPEA) 2025 for Tapti Decommissioning Project
• MFF Kattupalli received Safety Excellence Award from World Safety Organization
• MFF Hazira received RoSPA Gold Award at ICC National Occupational Health & Safety Conference
• Aramcos recognition for New Technology Adoption in CRPO 80-81
Energy Hydrocarbon - Onshore
• CII Gold Category Award for Excellence in EHS Practices for two projects:
- Residue Hydrocracker Unit (RHCU) for IOCL Panipat Refinery, Haryana
- Diesel Hydrotreater (DHDT) Unit for IOCL Panipat Refinery, Haryana
• CII Silver Category Award for Excellence in EHS Practices for two projects:
- IOCLRHCU
- IOCL DHDT
• Indian Chamber of Commerce (ICC) OHS Gold Awards 2025 for one project:
- Mono Ethylene Glycol (MEG) for Reliance Industries Limited (RIL), Kakinada, Andhra Pradesh
• Indian Chamber of Commerce (ICC) OHS Silver Awards 2025 for one project:
- Dual Feed Cracker Unit (DFCU) for HPCL Rajasthan Refinery Limited (HRRL), Barmer, Rajasthan
• WSO 5 Star Platinum Award for Most Outstanding Performer in EHS for three projects:
- Residue Upgradation Facility (RUF) for HPCL Vizag Refinery, Visakhapatnam, Andhra Pradesh
- IOCLRHCU
- Hydrogen Gas Unit (HGU) for Mitsubishi Heavy Industries (MHI)
• Best EPC Contractor Award for Mastergas PKG 8 Project in Master Gas System Expansion - III Programme by Saudi Aramco
CarbonLite Solutions
EEPC National Award for Excellence in Export of Engineering Services won by L&T-Sargent & Lundy Limited
Heavy Engineering
• EEPC Award for Export Excellence
• CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar 2025-26 in the category of Manufacturing Enterprises-Large
• Recipient of Golden Peacock Award for Energy Efficiency 2025 at the 26 th International Conference on Environment Management & Climate Change
• Recipient of CII National Best Practices Awards on Future Ready Manufacturing
• Recipient of CII-ITC Sustainability Award for Excellence in Environment Management
• Awarded as Exemplary Project in categories Harnessing Global Expertise for Ultimate Sustainable Energy Security Award and National Project Excellence Award for the Cryostat Project at 33 rd Global Symposium and 7 th World Project Management Forum (WPMF) Meet 2025
• Vadodara Heavy Engineering Works received the National Award for Outstanding Industrial Relations from the All India Organization of Employers (AIOE), linked with FICCI
Precision Engineering and Systems
• Recipient of the prestigious Champion of Champions Award from Raksha Mantri at SIDM Champion Awards 2025 for Waterjet Propulsion and Submarine Escape Training Tower (SETT) Projects
LTM
• Honoured as Google Partner of the Year 2025 for Industry Solutions in Manufacturing for the second year in a row
• At the annual Snowflake Summit 2025, honoured with the Manufacturing & Industrials Data Cloud Services Partner of the Year Award by Snowflake, the AI Data Cloud company
• Recognised as one of the Strategic Global Partners featured in Microsofts FY26 Agentic AI Playbook
• Recognised at the CII National HR Excellence Awards in Significant Achievement in HR Excellence category
• Won the 2025 Salesforce Partner Innovation Award for Manufacturing for its industry expertise and commitment to driving growth through innovation and agility
• Recognised with the Cisco CX Visionary Workplace Award for rapid modernisation of LTMs infrastructure, a testament to the strategic 360° relationship
L&T Technology Services
• Inducted into John Deere Supplier Hall of Fame for Five Consecutive Years of Excellence
• Recognised among CIIs Top 20 Most Innovative Companies
• Rated as Leaders in Digital Engineering Services 2025 by Avasant
• Rated as Leaders in HFS Semiconductor Horizons:
The Best of Service Providers across the Value Chain, 2025
• Rated as Leader in Oil & Gas for both EAM and AI & Cloud Services - US 2025 by ISG
L&T Semiconductor Technologies
• Received award of a Unique Manufacturer ID (UID) by BIS, enabling secure IC Manufacturing for Critical Applications
Realty
• Received ISO 9001:2015 certification
• Great Place to Work in Real Estate Sector - certified for second year in a row
• National Safety Council Awards 2025 in the Merit Category for Workplace Health and Safety
• Iconic Luxury Project (The Gateway) recognition from Times Real Estate
• Awarded The CII-IGBC Net Zero Water pre-certification for Design
CE & IPDD
Recognised with EEPC Export Award in Gold Plus category
under the CII-EXIM Bank Award for Business Excellence 2025
Green Energy
Pioneers of Energy Transformation at The ET Edge Global
Sustainability Alliance - Transformation Series 2025
Hyderabad Metro
• Economic Times - Railway Safety Excellence Award 2025 for outstanding safety performance
• Platinum 5 Star Trophy at the 4 th World Safety Organization (WSO) India Conference & Awards
• Recognised with Excellent Energy Efficient Unit Award at the CII National Award for Excellence in Energy Management 2025
• Recognised with Platinum Award at the 53 rd CII National Kaizen Competition for continuous improvement and operational excellence
Nabha Power
• Recognised as Best Performing Supercritical Power Plant having Lowest Auxiliary Power Consumption by Centre of Science and Environment (CSE)
• Winner: Gold Award for Occupational Health, Safety and Environment (OHSE) Excellence 2025 in the Thermal Power Generation category hosted by the International Business Conferences (IBC)
• Won in the category of Energy Efficient Unit from CII at National Award for Excellence in Energy Management 2025
• Won Innovation Award for Energy Conservation achieved by installing ACW Booster Pumps presented by Independent Power Producers Association of India (IPPAI)
Sustainability
• Awarded Sustainability Leadership Excellence in
3 rd Annual Sustainability Symposium by Indian Chambers of Commerce
• Won Mahatma Award 2025 for ESG Excellence, awarded by Mahatma Foundation
• Recognised in Perpetual Capital Hurun India Impact 50 2026 list
• Rank 5 amongst Most Sustainable Companies in the Engineering and Electrical & Electronics sector, and Rank 10 overall, at Business Worlds Indias Most Sustainable Companies (IMSC) Awards 2026
Corporate Social Responsibility
• L&Ts Unnati Project honoured with Significant Achievement Award at the 19 th CII-ITC Sustainability Awards
• CSTIs honoured with six awards from Brandon Hall- 1 Gold, 2 Silver & 3 Bronze Awards
• L&T Heavy Engineering honoured with Aether Award for Outstanding Achievement Award in Social Welfare from Southern Gujarat Chamber of Commerce (SGCCI) Golden Jubilee Memorial Trust
• Won Mahatma Award 2025 for CSR Excellence
INTEGRATED REPORT
Forward-looking Statement
This section contains forward-looking statements based on reasonable assumptions and past performance. These involve risks and uncertainties and may differ materially from actual results due to changes in industry trends, market conditions, : — regulations, and other factors. The Company makes no assurance that such statements will prove accurate.
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IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
