Synopsis:
Larsen & Toubro jumped sharply after it announced that its Power Transmission & Distribution division had won orders worth up to ₹5,000 crores in various locations such as India, UAE, and Oman. These orders include the installation of smart SCADA systems and STATCOM devices.
The shares of this leading engineering, procurement, and construction (EPC) provider are 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 5,08,451 crore, the shares of Larsen & Toubro Ltd made a day high of Rs 3,704 per share, up by 1 percent from its previous day closing price of Rs 3,667.15 per share. Over the past five years, the stock has delivered a robust return of 310 percent against the NIFTY 50 return of 120 percent.
About the order
Larsen & Toubro’s Power Transmission & Distribution (PT&D) division has bagged key orders for grid infrastructure projects in India, the UAE, and Oman. The project involves Distribution SCADA systems and dynamic reactive power compensation devices, which are the main features of keeping the grid stable and efficient.
SCADA (Supervisory Control and Data Acquisition): An automated system that visualizes and controls the industrial processes, for instance, an electrical network, in real-time performance, tracks the performance of the equipment, and solves problems quickly, enabling the operators.
One of the Indian projects is upgrading the power distribution of two towns by the adoption of smart SCADA technology, renovating the distribution transformer stations, and changing the overhead electrical lines into underground cabling. The local power networks will become more reliable and efficient through these upgrades.
As for the UAE, L&T is going to design, deliver, and build two ±300 MVAr STATCOM systems at existing 400 kV substations. Additionally, the Oman project involves the installation of a 400/132 kV grid station together with the respective segment of the 400 kV transmission line.
A STATCOM unit is a device that stabilizes the voltage by providing additional reactive power or absorbing it from the network, depending on the need, and thus giving an automated and instant response to the system fluctuation, and making the overall power quality better.
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 that was sourced from domestic clients.
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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 32.75x 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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