Engineering and construction major Larsen & Toubro plans to invest Rs 43,000-45,000 crore across businesses over the next five years under its Lakshya 31 strategic road map, with a sharp focus on emerging segments such as green hydrogen, data centres, semiconductors and industrial electronics.
The company has earmarked about Rs 15,000 crore for green hydrogen projects and around Rs 10,000 crore for data centres catering to both hyperscaler and non-hyperscaler customers. It has also allocated nearly Rs 5,000 crore for industrial electronics, Rs 3,000 crore for semiconductor-related investments including intellectual property acquisition and lab facilities, and another Rs 5,000 crore for upgrading hydrocarbon modular fabrication yards and shifting facilities.
Around Rs 4,400 crore has been set aside for the real estate business, the company told analysts in its January-March quarter earnings call. For FY27, the company plans capital expenditure of around Rs 2,500 crore for the core business, Rs 1,000 crore for electronics and nearly Rs 2,000 crore for data centres.
The investment plan forms part of L&T’s Lakshya 31 road map, which outlines the company’s growth strategy for FY26-31. The company is targeting compound annual growth of 10-12% in order inflows, 12-15% in revenues and return on equity of 16-17% during the period.
L&T to focus on business in sectors like green energy, semiconductors and data centres
As part of the strategy, L&T said new businesses such as green energy, semiconductors and data centres would become growth engines for the next decade while also creating opportunities for selective value unlocking. In technology services, the company plans to pivot towards AI-led models through subsidiaries LTIMindtree and L&T Technology Services, while expanding AI-enabled offerings and digital solutions.
In infrastructure, utilities and energy businesses, the company plans selective geographic diversification, technology-led execution and expansion of its customer base. In heavy engineering, it aims to deepen its presence across the nuclear and oil and gas equipment value chain. The industrial electronics business will focus on robotics, automation, communication platforms and electronic system design and manufacturing.
In data centres, the company is looking at hyperscaler alliances, AI-ready infrastructure and sovereign and private cloud offerings. Semiconductor design efforts will focus on mobility, energy and industrial applications. In financial services, L&T Finance is targeting loan book growth of over 20% CAGR with return on assets of 3-3.2% and return on equity of 16-18%.
The company said its earlier Lakshya 26 programme had exceeded several operational targets. Order inflows stood at Rs 4.4 lakh crore in FY26 against the target of `3.4 lakh crore, while revenues reached Rs 2.9 lakh crore compared with the target of Rs 2.7 lakh crore. Revenue CAGR during FY21-26 stood at 16%. Return on equity was 16.6% against the targeted 18%, which the company attributed partly to the impact of new labour code provisions.
On Tuesday, L&T reported consolidated revenue of Rs 82,800 crore for the January-March quarter, up 11% year-on-year, while net profit rose 5% to about Rs 5,400 crore. Order inflows for FY26 rose 25% to Rs 3.6 lakh crore, taking the order book to Rs 7.4 lakh crore. However, the company indicated that execution in the first half of FY27 could remain soft because of supply chain disruptions linked to the West Asia conflict and delays in domestic water projects.