ICICI Sec Investor Conf 2026 | Expect Growth To Be Upwards Of 15% On The Projects Business: L&T
Why It Matters
L&T’s pivot toward larger, tech‑driven projects and expanded manufacturing positions it for higher margins and strategic relevance, potentially boosting shareholder value and supporting India’s infrastructure and defense ambitions.
Key Takeaways
- •Projects will drive ~15% annual growth over next five years.
- •L&T aims to focus on larger, higher‑value engineering contracts.
- •Saudi Arabia solar EPC portfolio now totals 25 GW, a surprise shift.
- •Manufacturing to contribute 15% of revenue, emphasizing defense and fertilizers.
- •New electronics hub in Coimbatore targets strategic, Industry 4.0 needs.
Summary
Larsen & Toubro outlined its five‑year growth roadmap at the ICICI Securities conference, emphasizing a 15% compound annual growth target for its projects business. The company, which derives roughly 70% of revenue from engineering and construction projects, plans to scale up project size and complexity while shedding lower‑value work.
Management highlighted that the evolving engineering landscape and client appetite for new technologies are driving opportunities such as a 25 GW solar EPC portfolio in Saudi Arabia—an achievement they said would have been unimaginable seven years ago. L&T also expects its manufacturing arm, currently 10‑12% of turnover, to rise to 15%, focusing on defense, refinery‑petrochemical, and fertilizer equipment using alternate fuels.
The executive team noted L&T now ranks among the top five global engineering‑construction firms, excluding China, and is establishing a large electronics manufacturing centre in Coimbatore to serve strategic, Industry 4.0, mobility and energy applications. These moves aim to secure higher‑margin contracts and broaden the company’s technology base.
If successful, the strategy could lift earnings margins, deepen global partnerships and align L&T with India’s push for renewable energy, defense self‑reliance and advanced manufacturing, offering investors a clearer growth narrative.
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