Larsen & Toubro (LT) is experiencing a resurgence in demand for its engineering and construction services, primarily driven by large Indian business groups such as the Tatas, Adanis, Jindals, and Torrent. These conglomerates are investing heavily in sectors such as power, energy, and infrastructure, which is bolstering LT’s order book. The company’s domestic private sector order book has risen to ₹66,480 crore as of December 2024, a 25% increase from the same period last year and a significant jump from ₹56,280 crore in March 2023.
LTR’s deputy managing director, Subramanian Sarma, attributes the growth to increasing interest from the private sector, particularly in sunrise sectors such as semiconductors and data centers. He notes that the company is witnessing investments pouring into power, electronics, buildings, factories, and data centers, which presents a steadier revenue model compared to the cyclic EPC business. Sarma highlights LT’s strategic move to invest in tech-enabled services, making its existing businesses more efficient and laying the groundwork for future, tech-oriented businesses.
The company’s total order book is valued at ₹5.64 lakh crore as of December 2024, up 20% from the previous year. While the public sector still dominates its order book, the private sector is gaining traction, with LTR witnessing demand from various streams. The conglomerates are setting up power plants, and there is significant engagement with the private sector. LT’s investment in sunrise sectors, new technologies, and its push to become more tech-enabled is enabling the company to capitalize on emerging opportunities and establish a robust growth trajectory.