Synopsis:
Larsen & Toubro secured a significant order (up to ₹ 2,500 Crore) from Nuclear Power Corporation of India Ltd (NPCIL) for the 2X1000 MWe Kudankulam Nuclear Power Project (KKNPP – 5 & 6) in Tamil Nadu.
The shares of this leading engineering, procurement, and construction (EPC) provider is in focus after bagging a significant order from its other business vertical. In this article, we will dive more into the details.
With a market capitalization of Rs 4,98,623 crore, the shares of Larsen & Toubro Ltd made a day high of Rs 3,626.50 per share, up by 1 percent from its previous day closing price of Rs 3,585.35 per share. Over the past five years, the stock has delivered a robust return of 302 percent against the NIFTY 50 return of 119 percent.
About the order
Larsen & Toubro (L&T) announced that its Heavy Civil Infrastructure division has secured a new order from the Nuclear Power Corporation of India Ltd. (NPCIL) for the Kudankulam Nuclear Power Project, Units 5 & 6, in Tamil Nadu.
The work for the project involves the installation of the nuclear reactor and turbine systems (with generator and condenser), seawater systems, cranes, and other related equipment, besides comprehensive work on piping, structural steel, painting, insulation, anti-corrosion coating, and testing of the various buildings and systems.
This order, with an estimated value of between Rs 1,000 crore and Rs 2,500 crore (categorized as “Significant”), is a testament to L&T’s capabilities to deliver large and complex nuclear power projects and thereby make a huge contribution to India’s clean energy initiative.
As of Q1 FY26, the company has a robust order book of Rs 6,12,800 crore, up by 25 percent from its Q1 FY25 order book of Rs 4,90,900 crore. Almost 54 percent of its orders are derived from domestic clients, and the remaining 46 percent is derived from its international clients.
Order inflow for the year grew by a staggering 33 percent and currently stands at Rs 94,500 crore as compared to Rs 70,900 crore in Q1 FY25. Here is also the major order was sourced from domestic clients.
Also Read: Financially strong stock in focus after securing 838 MW order from Tata Power
Financial Highlights
The company reported a revenue of Rs 2,55,734 crores in FY25, up by 16 percent from its FY24 revenue of Rs 2,21,113 crores. Coming to its profitability, it reported a net profit growth of 14 percent to Rs 17,673 crores in FY25 from Rs 15,547 crores in FY24.
The stock has delivered an ROE and ROCE of 16.55 percent and 14.49 percent respectively, and is currently trading at a P/E of 32.10x as compared to its industry average of 20x.
Larsen & Toubro Limited (L&T) was founded in 1938 and is headquartered in Mumbai, India. It is a global engineering, construction, and manufacturing company. Its key segments include infrastructure projects, energy projects, and hi-tech manufacturing. L&T also provides IT and technology services, financial services, and infrastructure development, along with manufacturing industrial equipment.
Written by Satyajeet Mukherjee
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