L&T Secures Ultra-Mega Offshore Wind Orders in Europe; Q1 FY27 Order Inflows Rise 14% to Rs. 1.08 Trillion

Published at : Aug 26, 2026 09:53 AM (IST)

Total Views : 156

L&T Secures Ultra-Mega Offshore Wind Orders in Europe; Q1 FY27 Order Inflows Rise 14% to Rs. 1.08 Trillion

The Print Times | August 5, 2026:

Larsen & Toubro (L&T) continued to strengthen its global infrastructure and energy portfolio during the first quarter of FY27, supported by robust international order inflows, strategic partnerships, portfolio restructuring, and a healthy project pipeline.

Larsen & Toubro is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. It operates in over 50 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for over eight decades.

Speaking during the company's Q1 FY27 earnings conference call, Mr. Subramanian Sarma, Deputy Managing Director and President, Larsen & Toubro Limited, highlighted several strategic developments that reinforced L&T's position across renewable energy, defence, digital infrastructure, and electric mobility.

Among the key achievements during the quarter, L&T secured an ultra-mega order under TenneT's North Sea HVDC Offshore Wind Programme, taking its cumulative offshore wind transmission capacity secured over the past three quarters to approximately 8 GW. The order strengthens the company's growing presence in Europe's energy transition infrastructure and further establishes L&T as a global partner for large-scale renewable energy transmission projects."

The company also completed the divestment of Nabha Power on June 25, 2026, in line with its strategy to exit the concessions portfolio. Additionally, L&T signed an agreement with Hyderabad Metro Rail Limited, a fully state-owned enterprise of the Government of Telangana, to divest its entire stake in L&T Metro Rail Hyderabad Limited, with the transaction now expected to be completed by September 30, 2026.

Strengthening its technology and defence capabilities, L&T entered into a strategic collaboration with French company Exail to deliver an advanced unmanned mine counter-measure suite for the Indian Navy's Mine Counter Measure Vessels programme.

The company's data centre business, L&T Vyoma, partnered with Fortanix Incorporated, a U.S.-headquartered leader in Data and AI security and confidential computing, to jointly deliver sovereign secure Software-as-a-Service offerings for enterprises and government organisations in India.

Further expanding its presence in electric mobility, L&T Electronic Products and Systems Business entered into a strategic partnership with EVR Motors to jointly develop and manufacture next-generation EV traction motors in India, supporting indigenous manufacturing, advanced propulsion technology, localisation, and the Government's Make in India initiative.

L&T also received a 'Baa1' long-term issuer rating with a stable outlook from Moody's Ratings, two notches above the sovereign rating, reflecting the company's strong financial profile and low credit risk.

On the operational front, the company reported continued momentum in order inflows, driven by strong international ordering activity, including large offshore wind awards in Europe and sustained private sector investment across the domestic market, particularly in the Metals & Minerals and Buildings & Factories businesses.

Group order inflows increased 14% year-on-year to Rs. 1.08 trillion during Q1 FY27. Within this, the Projects, Products and Manufacturing (PP&M) portfolio recorded Rs. 860 billion in order inflows, also registering 14% year-on-year growth.

International order inflows grew 27% year-on-year, while domestic order inflows remained broadly stable with 1% growth. Consequently, the contribution of international orders in the PP&M portfolio increased to 55%, compared to 49% in the corresponding quarter last year.

L&T's opportunity pipeline for the remaining nine months of FY27 stood at approximately Rs. 15 trillion, compared to Rs. 14.81 trillion a year earlier. Infrastructure & Utilities accounted for Rs. 7.82 trillion, Energy-Conventional for Rs. 4.37 trillion, Energy-Green for Rs. 2.43 trillion, and Manufacturing & Products for Rs. 0.46 trillion.

The company's total order book reached Rs. 7.79 trillion as of June 2026, representing a 27% year-on-year increase. Infrastructure & Utilities contributed 45% of the order book, followed by Energy-Conventional at 28% and Energy-Green at 19%.

The geographic mix reflected L&T's expanding international presence, with 52% of the order book originating from overseas markets and 48% from domestic projects.

Within the domestic order book, excluding Realty, private sector participation increased significantly to 40%, up from 27% a year ago, supported by major project wins in CarbonLite Solutions, Residential, Commercial Buildings & Factories, Metals & Minerals, and Heavy Civil Infrastructure. Meanwhile, the combined share of Central and State Government orders declined to 30%, while PSU exposure moderated to 30% from 34% last year.

Of the international order book valued at Rs. 4.07 trillion, the Middle East accounted for 71%, Europe contributed 14%, driven by offshore wind projects, while the remaining 15% came from Central Asia, Asia, and SAARC markets. Around 8% of the total order book is funded by bilateral and multilateral agencies, while slow-moving orders represented less than 1% of the portfolio. During the quarter, orders worth Rs. 2.5 billion were deleted from the order book.

Despite temporary supply chain and logistics constraints affecting select Middle East projects and disruptions arising from the ongoing regional conflict, Group revenue increased 7% year-on-year to Rs. 679 billion during Q1 FY27. International operations contributed 51% of total revenue, while revenue from the PP&M business stood at Rs. 462 billion, up 2% year-on-year.

The Infrastructure & Utilities segment delivered particularly strong order inflows, which more than doubled year-on-year to Rs. 444 billion during the quarter. Major domestic orders included ferrous plant projects in the Metals & Minerals business and residential Buildings & Factories projects, while international wins were led by substations and transmission line projects in the Power Transmission & Distribution business, along with transportation infrastructure contracts.

Notably, the Metals & Minerals business secured its largest-ever domestic metals sector order from a leading iron and steel company. Private sector orders accounted for 77% of domestic Infrastructure & Utilities order inflows, compared with 52% in Q1 FY26, highlighting continued strength in private capital expenditure.

The Infrastructure & Utilities order book stood at Rs. 3.51 trillion as of June 2026, providing revenue visibility with an average execution cycle of approximately 29 months.

For the remaining nine months of FY27, the Infrastructure & Utilities opportunity pipeline stands at Rs. 7.82 trillion, comprising Rs. 5.47 trillion of domestic opportunities and Rs. 2.35 trillion of international prospects. The pipeline includes Transportation Infrastructure (24%), Heavy Civil Infrastructure (22%), Power Transmission & Distribution (17%), Buildings & Factories (15%), Water & Effluent Treatment (12%), and Metals & Minerals (10%).

Revenue from the Infrastructure & Utilities segment declined 3% year-on-year, primarily due to the early execution stage of certain large projects. The segment's EBITDA margin stood at 5.1%, compared with 5.5% in the corresponding quarter last year, mainly due to changes in revenue mix and higher expected credit loss (ECL) provisions.
 

Published at : Aug 26, 2026 09:53 AM (IST)

Total Views : 156