The shares of a Large-Cap multinational conglomerate company, which specializes in a diversified portfolio of technology, engineering, construction, manufacturing, and financial services, are gaining attention. In this article, we will explore the secret of Larsen & Toubro’s order book and why infrastructure leads the group.
With a market capitalization of Rs. 5,13,405.64 crores on Friday, the shares of Larsen & Toubro Ltd increased upto 2 percent, reaching a high of Rs. 3,744.85 per share compared to its previous closing price of Rs. 3,670.15 per share.
Larsen & Toubro Ltd (L&T) is a leading Indian multinational conglomerate with a strong presence in engineering, construction, manufacturing, technology, and financial services. Renowned for its execution excellence, L&T has been instrumental in building some of India’s most iconic infrastructure projects, including highways, metros, airports, power plants, and defense systems.
The company operates across multiple verticals such as Infrastructure, Power, Heavy Engineering, Hydrocarbon, IT & Technology Services, and Financial Services, serving both domestic and global markets. L&T’s vast and diversified order book reflects its strong capabilities, robust project pipeline, and trusted client relationships across sectors.
Orderbook Overview of the company
- Let’s analyze Larsen & Toubro’s order book to understand the key drivers behind its sustained growth.
Segment-wise Order Book Analysis
As of 30th June 2025, L&T’s total order book stood at ₹6,12,800 crore. The largest contributor was the Infrastructure segment, commanding a dominant 61% share, which translates to approximately ₹3,73,808 crore. The Energy segment followed with a 30% share, amounting to roughly ₹1,83,840 crore.
Hi-Tech Manufacturing contributed 6%, or about ₹36,768 crore, while Others accounted for 3%, totalling approximately ₹18,384 crore. This clearly indicates that L&T’s core strength remains deeply in the infrastructure and energy sectors, which together form over 90% of the total order book.
Geography-wise Order Book Analysis
From a geographical view, the order book as of Q1 FY26 reflects L&T’s strong domestic presence, with India contributing 54% of the total orders, approximately ₹3,30,912 crore. The Middle East remains the most significant international market, representing 37%, or around ₹2,26,736 crore. The Rest of the World (ROW) contributed the remaining 9%, amounting to about ₹55,152 crore.
In Q1 FY26, Larsen & Toubro (L&T) reported a total order inflow of ₹94,500 crore, reflecting a strong 33% year-on-year growth over Q1 FY25’s inflow of ₹70,900 crore. Domestic orders contributed ₹45,800 crore, while international orders surged to ₹48,700 crore, overtaking the domestic share and showcasing L&T’s increasing global presence.
As of 30th June 2025, L&T’s total order book reached ₹6,12,800 crore, a significant 25% increase from ₹4,90,900 crore recorded on 30th June 2024. The domestic order book stood at ₹3,30,100 crore, up from ₹3,05,200 crore a year ago, while international orders saw a strong jump to ₹2,82,700 crore from ₹1,85,700 crore. This growth reflects robust execution capabilities and strong order wins in both domestic and overseas markets.
Why Infrastructure Leads the Way?
Long-Term & High-Value Projects: Infrastructure projects like highways, metros, airports, and ports typically span several years and involve significant investments. Such projects provide L&T with a stable and high-value order pipeline, ensuring revenue visibility for the long term.
Huge Government Spending: Governments, especially in India, are prioritizing infrastructure development to boost economic growth, improve connectivity, and create jobs. This leads to a steady flow of large-scale projects for L&T, making infrastructure the backbone of its order book.
L&T’s Strong Execution Track Record: The company, with decades of experience and a reputation for timely and quality delivery, is the preferred partner for infrastructure projects, and this trust results in repeat orders and continuous inflow in this segment.
Global Opportunity: Approximately 45% of L&T’s infrastructure orders come from international markets, especially the Middle East, highlighting its strong global footprint and ability to capitalize on overseas infrastructure development.
Growing Urbanization and Industrialization: The rapid urbanization and industrial growth in India and other emerging markets are driving demand for modern infrastructure. This trend expands opportunities for L&T across transport, utilities, and smart city projects.
Conclusion
Larsen & Toubro’s strong order book is primarily driven by its leadership in the infrastructure sector, supported by long-term, high-value projects and significant government spending. The company’s proven execution capabilities and trusted reputation ensure a steady flow of orders both in India and internationally.
Additionally, rapid urbanization and industrial growth continue to create new opportunities. Overall, L&T’s diversified portfolio and global presence position it well for sustained growth and value creation in the coming years.
Financials & Others
The company’s revenue rose by 15.53 percent from Rs. 55,120 crore to Rs. 63,679 crore in Q1FY25-26. Meanwhile, the Net profit rose from Rs. 3,445 crore to Rs. 4,318 crore during the same period. It has delivered a 12 percent CAGR in sales and a 10 percent CAGR in profit over the past five years, highlighting consistent business growth.
The company has been maintaining a healthy dividend payout of 33.0%, reflecting its strong cash flows and shareholder-friendly approach. It also delivers decent return ratios, with a ROCE of 14.5% and ROE of 16.6%, indicating efficient capital allocation and profitability.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
