L&T in talks with companies to export green ammonia from Kandla plant
This story was originally published at 21:19 IST on 29 July 2025
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--L&T: Focus on timely execution of projects lifted revenue by 16% in Q1
--CONTEXT: Comments by L&T mgmt in post-earnings press conference
--L&T: Domestic order book in Apr-Jun led by energy, infrastructure segments
--L&T: Need to keep winning orders like Q1 for rest of FY26
--L&T: Hope to get one semiconductor order approved by end of year
--L&T: Industrial capex still subdued amid global uncertainty
By Anand JC and Avishek Rakshit
NEW DELHI/KOLKATA – Larsen & Toubro Ltd. is in talks with "several interested parties" for the export of green ammonia from its plant in Kandla, Gujarat. The company hopes to announce developments in this regard in the next quarter or two, which will give it a roadmap to develop its production in Kandla, Chairman and Managing Director S.N. Subrahmanyan told reporters at a post-earnings virtual press conference.
"At the moment, the work is confined to land development, approvals, basic stuff," Subrahmanyan said. "But for it to get into a production zone, it would require more progress on the commercial front." The company had announced in June that it had secured land in Kandla to manufacture green hydrogen and green ammonia. It incorporated L&T Green Energy Kandla Pvt. Ltd. in April to develop green hydrogen projects.
L&T's subsidiary, L&T Energy GreenTech Ltd., recently signed a 25-year take-or-pay agreement with Indian Oil Corp. Ltd. to set up India's largest green hydrogen plant in Haryana. "So we do hope by the time the year ends, there could be at least one or two opportunities that we could closely look at for supply of green hydrogen," the chairman said.
L&T said its semiconductor business, part of its newly incubated businesses, is progressing currently. "And we quite realise this because we are now trying to create design chips which is meant for better functionality," Subrahmanyan said. It hopes to get at least one of its semiconductor chip products approved before the end of the year, which could translate into commercial production orders.
CORE BUSINESS
L&T disclosed its financials for the June quarter Tuesday after market hours. It reported a consolidated revenue of INR 636.80 billion, up 16% on year. The company attributed this growth to the timely execution of projects. It also reported a consolidated net profit of INR 36.20 billion, up nearly 30% on year.
The company's order inflow during the reporting quarter was INR 945 billion. Of the amount, 52% came from international orders and 48% from domestic orders. Order inflows in India amounted to INR 458 billion, up 19% on year. "The domestic orders and the growth thereof is largely led by our energy segment as well as the various business verticals of the infrastructure segment," Subrahmanyan said.
To meet targets set for the financial year ending March, the company must keep winning orders of a magnitude similar to the orders won in the June quarter. "...otherwise, as they say in a T20 (20-overs-a-side cricket) game, the ask rate becomes too stiff for the remaining months," he said. L&T remains optimistic of continuing with its order win rate.
About 80% of L&T's international order book is from countries in West Asia. The orders are spread across renewable energy, power transmission, hydrocarbon onshore and offshore, transportation infrastructure, and public spaces, among other segments.
The company has an order pipeline of around INR 15 trillion between now and Mar. 31. Roughly 40% of these order inflows could come from the domestic market, and around 60% from international markets, it said. Much of this order book is in the infrastructure segment, Subrahmanyan said. Orders worth around INR 6 trillion are in the hydrocarbon segment while orders of INR 1 trillion are from segments such as carbon light, heavy engineering, precision engineering systems, and green energy.
Subrahmanyan said industrial capital expenditure is currently subdued because of global uncertainty. "Large-scale industrial capacity expansion has not happened beyond possibly some investments in minerals, metals area, some investment in automobiles, some investment in construction, accessories," he said. However, sectors such as airports, data centres, and commercial and residential real estate have seen private-sector investments, he added.
Tuesday, shares of L&T closed 2.1% higher on the National Stock Exchange at INR 3,495.60. End
Edited by Rajeev Pai
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