Synopsis: L
arsen & Toubro Ltd, in focus after winning a large order in India’s prestigious bullet train project. The contract strengthens its position in ballastless track technology and further enhances its share of the Mumbai-Ahmedabad High Speed Rail corridor. Investors reacted positively to the announcement.
A capital goods and infrastructure stock traded firm after the announcement of a major order win in India’s high-speed rail sector. The development lifted sentiment as the company continued to consolidate its leadership in ballastless track technology, while strong order book and inflows added to the positive outlook.
Larsen & Toubro Ltd, with a market capitalization of Rs. 4,95,149.87 crore, opened at Rs. 3,581 on Monday against a previous close of Rs. 3,579.60. The stock touched an intraday high of Rs. 3,607.40, marking a gain of 0.77 percent from the previous close.
What’s the News?
The Transportation Infrastructure business vertical of Larsen & Toubro has secured a large order worth Rs. 2,500-5,000 crore from the National High Speed Rail Corporation Ltd (NHSRCL) to construct 156 route km (RKM) of high-speed ballastless track (Package T1) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) Corridor.
The scope covers design, supply, construction, testing, and commissioning of track works on a design-build lump sum basis between Mumbai’s Bandra-Kurla complex and Zaroli village in Gujarat.
This includes 21 km of track works in underground sections under civil packages C1 and C2, and 135 km on the elevated viaduct under package C3. This is L&T’s second major track-work package win in the corridor.
In April 2022, NHSRCL awarded Package T3 (116 km) from Vadodara to Sabarmati depot to the company, which is progressing rapidly. With the new contract, L&T now commands responsibility for over 50 percent of the track-works in the project. The works will adopt Japanese Shinkansen J Slab Track Technology, enabling speeds of up to 320 kmph, superior ride quality, longer service life, and enhanced maintainability.
The company has developed expertise in various ballastless track systems including plinth track, slab track, low vibration track, floating slab track, and pre-cast slab track. It is currently executing ballastless track projects in metro systems across Bengaluru, Chennai, Mumbai, and Jakarta.
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Management Commentary
Commenting on the latest order win, Mr S V Desai, Whole-time Director & Sr EVP (Civil Infrastructure), L&T said: “Our success in T3 package involved rapid technology absorption, indigenisation of plant & machinery and value engineering. This has been a key factor in our approach to this new order, and we are confident of delivering on time”
Financial Snapshot
On a sequential basis, sales declined from Rs. 74,392 crore in Q4FY25 to Rs. 63,679 crore in Q1FY26, a fall of 14.4 percent. Operating profit fell from Rs. 9,876 crore to Rs. 8,024 crore, down 18.8 percent. Profit before tax slipped from Rs. 8,014 crore to Rs. 5,860 crore, a decline of 26.9 percent, while net profit declined from Rs. 6,156 crore to Rs. 4,318 crore, lower by 29.9 percent.
On a year-on-year basis, sales grew from Rs. 55,120 crore in Q1FY25 to Rs. 63,679 crore in Q1FY26, an increase of 15.5 percent. Operating profit rose from Rs. 7,046 crore to Rs. 8,024 crore, up 13.9 percent.
Profit before tax increased from Rs. 4,677 crore to Rs. 5,860 crore, higher by 25.3 percent, while net profit advanced from Rs. 3,445 crore to Rs. 4,318 crore, a rise of 25.3 percent.
As of June 30, 2025, the company’s order book stood at Rs. 6,128 billion, marking a 25 percent year-on-year growth. Order inflows reached Rs. 945 billion in Q1FY26, up 33 percent year-on-year, with infrastructure contributing 44 percent. International orders made up 46 percent of the book. The company listed India’s first ESG bond on NSE, won the largest green hydrogen supply tender in the country, and reported a strong prospect pipeline of Rs. 15 trillion for the remaining nine months of FY26.
About the Company
Larsen & Toubro was incorporated in 1946 and became a public limited company in 1950. Today, it is one of Asia’s largest vertically integrated EPC conglomerates with diversified businesses in infrastructure, power, hydrocarbons, heavy engineering, precision engineering and systems, IT and technology services, metallurgical and material handling, and machinery and industrial products. Through its subsidiaries LTMRHL and L&T PDL, the company also undertakes metro rail and power generation projects.
Written By Manan Gangwar
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