Synopsis: A leading infrastructure and engineering conglomerate lands a large-category contract tied to India’s coal gasification ambitions, signalling fresh momentum in the domestic chemicals and energy space.
India’s push to reduce import dependence on fertilisers and industrial chemicals is gaining ground, and one of the country’s largest engineering firms just added a significant contract to its books. The order, linked to a Coal-to-Ammonia-Nitrate project in Odisha, falls in the “Large” category as per the company’s classification system, implying a deal value between ₹2,500 crore and ₹5,000 crore.
With a market cap of Rs. 5,56,519 Crore, the shares of Larsen & Toubro Ltd. are trading at a price of Rs. 4,060 per share i.e. 0.96% down from its previous closing price of Rs. 4,099 . It currently trades at P/E of 32.5.
When Coal Meets Chemistry: A Big-Ticket Win With Downstream Depth
L&T Energy Hydrocarbon Onshore, a division of Larsen & Toubro, has bagged a large order from Bharat Coal Gasification and Chemicals Ltd (BCGCL) – a joint venture between Coal India Ltd (CIL) and Bharat Heavy Electricals Ltd (BHEL) – for a Coal-to-Ammonia-Nitrate project in Odisha. The contract falls under LSTK Package-4, meaning L&T will carry full single-point responsibility for engineering, procurement, and construction of the Nitric Acid and Ammonium Nitrate Plant.
Once operational, the facility is designed to produce 2,000 tonnes of ammonium nitrate per day – a critical industrial input used across India’s mining, infrastructure, and construction sectors. The scope of the order is comprehensive: it covers process licensing, basic design, detailed engineering, procurement, construction, pre-commissioning, commissioning, performance guarantee test runs, and final handover of the plant.
The strategic backdrop here matters. Under the Aatmanirbhar Bharat initiative, India has set a target of 100 million tonnes of coal gasification capacity by 2030. The broader goal is to convert high-ash domestic coal into value-added products such as ammonium nitrate, methanol, synthetic natural gas, and fertilisers – thereby cutting reliance on imports and building industrial self-sufficiency. This order places L&T squarely in the middle of that national agenda.
L&T Energy Hydrocarbon Onshore has an established track record in delivering turnkey solutions across upstream, midstream, and downstream hydrocarbon sectors – covering refineries, petrochemical complexes, fertiliser plants, LNG terminals, and cross-country pipelines.
About the Company and Financials
Larsen & Toubro is a USD 30 billion Indian multinational engaged in EPC projects, hi-tech manufacturing, and services. With over eight decades of operations across multiple geographies, L&T is one of India’s largest and most diversified engineering conglomerates, known for delivering complex, large-scale infrastructure and industrial projects.
Between December 2024 and December 2025, Larsen & Toubro (L&T) maintained a steady growth trajectory despite a high base. Sales grew from ₹64,668 crore in December 2024 to ₹71,450 crore in December 2025, a roughly 10.5% increase. EBITDA (Operating Profit) rose from ₹7,898 crore to ₹9,190 crore during this same period, with margins remaining stable at 13%. However, Net Profit saw a slight contraction, settling at ₹3,825 crore in December 2025 compared to ₹3,974 crore the previous year, primarily due to higher tax expenses and interest costs.
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.
