Private Capex
Need to see if initial signs of pickup in pvt capex becomes trend, says L&T
This story was originally published at 20:53 IST on 29 October 2025
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--L&T: Infra projects led growth in domestic orders in Q2
--CONTEXT: Comments by L&T mgmt in post-earnings press call
--L&T: Domestic orders in Q2 aided by uptick in pvt sector investment
--L&T: May foray into electronics mfg to broadbase revenue stream
--L&T: See Hyderabad metro divestment timeline to be between now and Q4
MUMBAI/NEW DELHI – Multinational engineering conglomerate Larsen & Toubro Ltd. Wednesday said while private sector investments are picking up in some sectors, more evidence and time would be needed to assess if these expenditures will break out into a trend. "We find that both private sector capital as well as infrastructure investments have shown an uptick; we do believe that the trend would continue going forward," the company told reporters in a post-earnings press conference.
L&T reported an order inflow of INR 1.16 trillion for the September quarter, up 45% on year. Its order book increased 31% on year to INR 6.67 trillion. In Apr-Sept, the company's order inflow was INR 2.10 trillion, 38% higher than the year-ago period.
More than half of order inflows in Apr-Sept were from the private sector, the company said. "That's a bit of a welcome release from a very subdued order intake from the private sector in the previous year," an executive from L&T said.
L&T reported a consolidated net profit of INR 39.26 billion for the September quarter on revenues of INR 679.84 billion. "The quarter that went by and indeed the half-year is actually by no means an easy period of time. There were several moving parts, both in the domestic economy and in the international markets," the company said.
L&T's executives said the company is looking to foray into the electronics manufacturing sector as it looks to broaden revenue streams. However, instead of operating in the consumer durables space, the company would explore operating in the communications, aerospace, precision engineering, and light engineering, among other sub-sectors.
"We think that it is an area which will provide us good, handsome returns if we can scale up," L&T said. "To establish these facilities, to have the domain expertise, product quality and competitiveness, and scale will determine the ultimate profitability," L&T said.
L&T is also interested in expanding its presence in the data centre and defence sectors. Within the data centre sub-sector, L&T would look at ensuring it can provide value-added services like cloud services, the company said.
L&T currently builds ships for the Indian Navy, such as their postcard and survey vessels. The government may come out with one or two more such projects in FY26 and the company is looking to win those contracts or orders. "It is difficult to predict the timeline, but from just the medium-term potential, I think it's an area which is of interest to us," the company said.
L&T is currently in talks with the Telangana government to divest stake in L&T Metro Rail (Hyderabad) Ltd. L&T expects the divestment to be completed between now and the end of the March quarter.
"Hyderabad Metro, by its nature, being a long concession and for public benefit, will take a while for it to become profitable only when the debt gets substantially repaid," the company said. "Normally, such concessions it is the back end of the concession that you'll start seeing the profits and coming into the books. So, to that extent, the investment is upfront and the return is back-ended," the executive added.
Infrastructure projects led the company's order book growth for India in the September quarter. Nearly INR 4 trillion worth of orders from the company's current order book of INR 6.67 trillion are infrastructure-related. Nearly 32% of the remaining order book is from the energy segment.
L&T reported its September quarter earnings after the markets closed. Wednesday, its shares ended at INR 3,958.10 on the National Stock Exchange, down 0.4%. End
Reported by Anand JC and Rajesh Gajra
Edited by Akul Nishant Akhoury
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