Synopsis: Larsen & Toubro leading Large-Cap multinational conglomerate with a robust order book valued at ₹733,200 crore, is primarily driven by its Infrastructure segment, contributing 58% of total order book and order inflows with a 45% share.
Larsen & Toubro, a leading Large-Cap multinational conglomerate, operates across a diversified portfolio that includes technology, engineering, construction, manufacturing, and financial services. At the heart of its operations lies a strong order book, with infrastructure emerging as the key driver of the group’s growth. In this article, we will explore the secret of Larsen & Toubro’s order book and why infrastructure leads the group.
With a market capitalization of Rs. 6,02,552.24 crores on the day’s trade, the shares of Larsen & Toubro Ltd increased upto 2.59 percent, reaching a high of Rs. 4390.00 per share compared to its previous closing price of Rs. 4278.80 per share.
Orderbook Overview of the company
Larsen & Toubro (L&T) continues to demonstrate strong growth across segments and geographies. With a robust order book and record quarterly inflows in Q3 FY26, the company’s performance reflects its leadership in Infrastructure and Energy, a growing international presence, and a well-diversified portfolio that supports both near-term opportunities and long-term strategic growth.
Order Book Breakdown by Segment
As of 31st December 2025, L&T’s total order book reached a massive Rs. 733,200 crore, reflecting a 30% year-on-year growth. International orders accounted for 49% of the total, supported by a robust near-term opportunity pipeline of approximately Rs. 5.9 trillion.
The Infrastructure segment was the largest contributor, representing a commanding 58% share, or around Rs. 425,256 crore, followed by the Energy segment with a 34% share, approximately Rs. 249,288 crore. The Hi-Tech Manufacturing segment accounted for 5% of the order book, roughly Rs. 36,660 crore, while the Others category made up 3%, totalling around Rs. 21,996 crore.
This highlights that L&T’s primary focus and strength continue to lie in the Infrastructure and Energy sectors, which together represent more than 90% of the total order book.
From a geographical perspective, the order book as of Q3 FY26 reflects L&T’s strong domestic presence, with India contributing 51% of the total orders, approximately ₹373,932 crore. The Middle East remains the most significant international market, representing 37%, or around ₹271,284 crore. The Rest of the World (ROW) contributed the remaining 12%, amounting to about ₹87,984 crore.
This distribution underscores L&T’s balanced strategy, with a strong domestic base complemented by a significant international presence, enabling the company to tap global opportunities and diversify risks.
Orderflow By segment Distribution
In Q3 FY26, Larsen & Toubro (L&T) recorded a total order inflow of Rs. 135,600 crore. The Infrastructure segment was the largest contributor, accounting for 45% of the total with roughly Rs. 61,020 crore, while the Energy segment contributed 34%, amounting to approximately Rs. 46,104 crore.
The Services accounted for 14%, roughly Rs. 18,984 crore, while Others contributed 5%, around ₹6,780 crore. Hi-Tech Manufacturing represented 2% of the inflow, totalling approximately Rs. 2,712 crore. The company achieved its highest-ever quarterly order inflow, driven by robust domestic demand, up 17% YoY, the strongest in any quarter.
By geography, L&T’s Q3 FY26 order inflow was dominated by India, which contributed 51%, or around Rs. 69,156 crore. The USA and Europe together accounted for 22%, approximately Rs. 29,832 crore, while the Middle East added 11%, roughly Rs. 14,916 crore. The Rest of the World (ROW) comprised the remaining 16%, totalling about Rs. 21,696 crore.
The strong contribution from domestic orders highlights L&T’s robust position in the Indian market, while steady inflows from international regions reflect its diversified global presence. This mix underscores the company’s balanced growth strategy across both domestic and overseas markets.
Why Infrastructure Leads the Way?
- Sustained Revenue from Major Infrastructure Developments: L&T engages in large-scale infrastructure initiatives such as highways, metro systems, airports, and seaports. These projects often extend over multiple years and require substantial capital, offering the company a steady stream of high-value contracts that enhance long-term revenue predictability.
- Technological Innovation and Digital Integration: L&T is increasingly leveraging cutting-edge technologies such as smart construction methods, digital project management, and AI-driven monitoring. These innovations improve efficiency, reduce costs, and enhance project quality, making L&T a preferred partner for complex infrastructure projects.
- Expanding International Presence: Nearly half of L&T’s order book, around 49%, originates from overseas markets, particularly the Middle East. This underscores the company’s robust global footprint and its capability to leverage opportunities in international infrastructure projects.
- Massive Public Investment: Governments, particularly in India, are focusing on expanding infrastructure to stimulate economic growth, enhance connectivity, and generate employment opportunities. This focus results in a continuous pipeline of significant projects for L&T, positioning infrastructure as the core driver of its order backlog.
- Proven Execution Expertise: With decades of experience and a reputation for delivering projects on time and to high standards, L&T is a trusted choice for infrastructure ventures. This reliability fosters repeat business and ensures a steady stream of new orders in the sector.
- Rising Urban and Industrial Demand: Accelerating urbanization and industrial expansion in India and other emerging economies are fueling the need for advanced infrastructure. This trend opens up significant opportunities for L&T in sectors such as transportation, utilities, and smart city developments.
- Diversified Infrastructure Portfolio: L&T’s presence spans multiple segments—roads, railways, metros, airports, ports, water, and power infrastructure. This diversified portfolio reduces dependency on any single sector and ensures balanced revenue streams across cycles.
Financials
The company’s revenue rose by 10.49 percent from Rs. 64,668 crores in December 2024 to Rs. 71,450 crores in December 2025. Meanwhile, Net profit declined from Rs. 3,974 crores to Rs. 3,825 crores in the same period.
The company continues to demonstrate strong financial performance, with a Return on Capital Employed (ROCE) of 14.5% and a Return on Equity (ROE) of 16.6%, reflecting efficient capital utilization and robust shareholder value creation. It has consistently maintained a healthy dividend payout of 33%, underlining its commitment to rewarding shareholders.
Larsen & Toubro Ltd (L&T) is a leading Indian multinational conglomerate with a strong presence in engineering, construction, manufacturing, technology, and financial services. Renowned for its execution excellence, L&T has been instrumental in building some of India’s most iconic infrastructure projects, including highways, metros, airports, power plants, and defense systems.
The company operates across multiple verticals such as Infrastructure, Power, Heavy Engineering, Hydrocarbon, IT & Technology Services, and Financial Services, serving both domestic and global markets. L&T’s vast and diversified order book reflects its strong capabilities, robust project pipeline, and trusted client relationships across sectors.
Larsen & Toubro’s robust order book is largely fueled by its leadership in the infrastructure sector, underpinned by long-term, high-value projects and substantial government investments. The company’s strong execution track record and trusted reputation help maintain a consistent flow of orders, both domestically and internationally. Furthermore, accelerating urbanization and industrial expansion are creating fresh opportunities. Overall, L&T’s diversified portfolio and global footprint position it favourably for sustained growth and long-term value creation.
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