SHANTI Act is expected to spur interest in small modular reactors for Larsen & Toubro; the company has embarked on its next five-year strategic growth plan, Lakshya 2031

SHANTI Act is expected to spur interest in small modular reactors for Larsen & Toubro; the company has embarked on its next five-year strategic growth plan, Lakshya 2031

The below speech is given by S. N. Subrahmanyan, CMD of Larsen & Toubro in the annual report for FY 25-26

The Print Times

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.

The FY year 2025-26, was marked by significant shifts in the global technology, economic and geopolitical landscape. Advances in Artificial Intelligence (AI) continued to drive innovation and transformation across industries, while the shifting global tariff regimes and the conflict in West Asia have disrupted supply chains, energy markets and capital flows. 

Amidst this evolving environment, the Indian economy remained resilient. Increased public investment in infrastructure and initiatives promoting Aatmanirbharta (selfreliance) reinforced India’s position as the fastest-growing major economy. As a management, we are trying our best to get mentally used to events beyond our comprehension and lookout − like the COVID-19 pandemic, Suez Canal blockage, Red Sea challenge, tariffs, unnatural price increase, conflict in West Asia, to name a few.

For Larsen & Toubro, 2025-26 was a year of steady progress. Record order inflows, strong revenue growth and improved profitability strengthened your Company’s presence across construction and infrastructure, hi-tech manufacturing and technology-driven services, while its continued focus on emerging sectors remained aligned with long-term strategic priorities.

The evolving situation in West Asia creates some near-term uncertainty. As a strategically important market for Larsen & Toubro, the developments in the region are being closely monitored by the management, with priority accorded to employee safety, business continuity and asset protection. Over time, the restoration of normalcy may also create opportunities for rebuilding and investment activity.

Backed by nearly nine decades of experience in navigating external challenges, your Company remains confident, resilient and focused on delivering stable and consistent performance.

The operating environment in FY 2025-26 was characterised by volatility, uncertainty, complexity and ambiguity. Developments in global trade because of imposition of tariffs and countermeasures contributed to periods of market volatility. Disruptions in supply chains added to the uncertainty for multiple sectors such as transport and logistics, agriculture, industry and technology, with broader implications for economic growth. Geopolitical complexity intensified with the escalation of long standing tensions in West Asia. Meanwhile the ambiguity surrounding rapid advancements in AI has also opened up huge opportunities, particularly in knowledge intensive domains. In such times, leadership is not measured by the absence of challenges, but by the clarity, conviction and composure of the response to such situations.

The Gulf Cooperation Council (GCC), accounting for nearly one-third of your Company’s annual revenue of USD 32 billion, is a vital market for us. The conflict in the region has barely impacted us. It is business as usual at the 100 odd project sites there, with no material disruption to invoicing or collections. More importantly, all our people and assets are safe. This has been possible because of the strength of our client relationships — built over decades of trust, delivery and transparency. That ensured continuity and kept opening new avenues for collaboration on a continual basis.

Looking ahead, we expect sustained demand across infrastructure, hydrocarbon, renewables, power transmission & distribution, power capabilities and water treatment in both domestic and international markets. The passage of the SHANTI (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) Act is also expected to spur interest in small modular reactors, an area of relevance to L & T given its decadeslong expertise in engineering and manufacturing critical reactors and pressure vessels, including for the nuclear sector. In India, early signs of renewed private investment across sectors such as energy transition, real estate, data centers, electronics, semiconductors and select traditional industries are expected to create additional opportunities for the Company.

In this backdrop, a few external factors continue to require careful consideration. Cash conservation is being pursued across the Group in a focused manner with increased emphasis on working capital management. In addition, cybersecurity readiness and network resilience are also being stepped up. The Company is adopting a selective and disciplined approach to project bidding, supported by clear guardrails on sectors and geographies addressed, without any compromise on quality.

Group businesses 

Building on the success of Lakshya 2026, your Company has now embarked on its next 5-year strategic growth plan, Lakshya 2031, to enhance the agility and resilience of its business model. The objective is to make the organisation more future-ready through accelerated adoption of digital technologies (particularly across the core verticals), improved profitability, and continued incubation of new-age businesses. As your Company continues to explore opportunities in emerging sectors and new geographies, the grooming of next-generation leaders capable of navigating the digital age is a priority.

Infrastructure 

The continued pursuit for quality and timely completion while executing large-scale, complex EPC projects has always been the hallmark of your Company. 

Highlights of the year: 

• Kartavya Bhavan 1, 2 & 3 and Seva Teerth in Delhi inaugurated by Prime Minister of India 
• Phase 1 of the Navi Mumbai International Airport in Maharashtra inaugurated by Prime Minister of India 
• Inauguration of Phase 1 of Patna Medical College and Hospital in Bihar which, upon completion, will become world’s second-largest hospital 
• Achieved significant milestones at the Rajasthan Atomic Power Plant (RAPP) units 7 & 8 with the project’s Natural Draught Cooling Towers (NDCTs) and related works being executed ahead of schedule 
• Inauguration of the south-side arm of Thane Creek Bridge-III in Maharashtra.
• Inauguration of Gateway of Guwahati on the Brahmaputra River in Assam, India’s first modern river ferry terminal and jetty 
• Commercial operation started on the entire section of mainline 182 TKM of the Delhi-Meerut RRTS after the completion of slab tracks 
• Delivered multiple landmark commissioning at Tata Kalinganagar 
• Inauguration of the 112.5 MW Goaltore solar power plant in West Bengal, making it one of the largest renewable power projects in eastern India 
• Successful beaming of a critical 156 km transmission line connecting Rooppur and Gopalganj, marking a significant boost for Bangladesh’s energy infrastructure

As the Company aims for the Lakshya 2031 targets, I would like to take this opportunity to express my sincere gratitude to all our stakeholders for the support extended throughout this journey. I also extend my appreciation to my fellow Board members for their valuable guidance and counsel in enabling the Company to embark on the next phase of its growth.
 

Published at : Sep 21, 2026 09:29 AM (IST)

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