Opportunities in energy, infrastructure, real estate and others are expected to boost the domestic orders of Larsen & Toubro (L&T) in the coming quarters, say brokerages.
In Q2FY26, the company got orders worth ₹ 115,784 crore at the group level, and 45% of order inflows were domestic orders and about 50% of the domestic orders were infrastructure orders. International orders mostly came from hydrocarbon renewables and power transmission and distribution, the company said.
L&T is witnessing improvement in order inflow prospects from domestic markets, Motilal Oswal Financial Services said in a note. Over the next two to three years, the company is eyeing around 10-15GW of thermal power projects, along with opportunities from nuclear and hydro power, strong inflows from buildings and factories, particularly from real estate, and opportunities from transportation infrastructure, metals and mining, as well as defence, it said.
“We expect these opportunities to bring improvement in domestic order inflows for the company over time,” Motilal Oswal said. L&T is going slow on water projects on account of payment delays. Water segment currently forms 7% of the total order book, it said.
Elara Securities said L&T delivered a strong Q2, with E&C (engineering and construction) order inflows up 54% y-o-y, led by large wins in hydrocarbon and infrastructure segments, both domestically and in West Asia, reinforcing robust visibility. “A sharp uptick in the order prospect pipeline (Rs 10.4 lakh crore), led by energy transition and infrastructure opportunities, underpins strong inflow momentum to continue in H2,” it said.
Antique Stock Broking said since L&T is the largest infrastructure company in the country, it believes the company would be a key beneficiary of various infrastructure development projects and the central government’s Gati Shakti, which is a pivotal theme to revive the Indian economy.
Motial Oswal noted L&T is steadily diversifying into new-age sectors aligned with global sustainability and technological trends.
Under its Lakshya 2031 roadmap, the company has identified electronics manufacturing, renewable energy, and semiconductors as key growth pillars. In renewables, L&T signed an MoU with Itochu Corporation of Japan for a 300 ktpa green ammonia project at Kandla in Gujarat, marking its entry into large-scale green hydrogen and ammonia production.
The company is also executing the EPC scope for the Yanbu Green Ammonia project in Saudi Arabia, covering solar, wind, and battery storage systems. In semiconductors, its subsidiary L&T Semiconductor Technologies acquired design assets and IP from Fujitsu General Electronics, increasing its expertise in power modules and advanced chip design while partnering with IISc Bengaluru to establish a national 2D innovation hub for next-generation semiconductor research.
“These initiatives demonstrate L&T’s transition from a conventional EPC company to a technology-driven engineering leader with a growing footprint in green energy, electronics, and digital infrastructure,” Motilal Oswal said.
