Seeing strong growth amid global uncertainties: L&T's S N Subrahmanyan

Chairman S.N. Subrahmanyan says L&T saw robust order inflows and record profits in FY25 amid geopolitical tensions, infrastructure demand and digital expansion

Despite global uncertainty due to ongoing wars and supply chain disruptions, consistent order inflows from West Asia and rapid infrastructure investments in India are driving L&T’s growth, its Chairman and Managing Director (CMD) S N Subrahmanyan said at the company’s 80th Annual General Meeting (AGM) conducted online here on Tuesday.

 

“In India, strong government spending on infrastructure, and rising private investment in sectors like energy transition, data centres, semiconductors, and healthcare signal positive momentum,” the CMD said.

 

“Despite global uncertainty, your company delivered strong growth across key performance metrics. Group order inflows for the year (2024-25, or FY25) reached ₹3.57 trillion, up 18 per cent year-on-year (Y-o-Y), driven by order wins in infrastructure and energy sectors. Like the previous year, continued capex in the Gulf countries drove international order wins, which exceeded domestic order wins for the second year in a row,” Subrahmanyan said, adding that the company was keeping a close watch on the emerging Israel-Iran war situation.

 

The CMD described FY25 as a transformational year shaped by geopolitical shifts, emerging technologies, climate challenges, and supply chain disruptions. “Amid these complexities, L&T demonstrated resilience by embracing digital tools, enhancing execution capabilities, and offering sustainable solutions,” he said.

 

The company ended the year with a record-high order book of ₹5.79 trillion, up 22 per cent Y-o-Y, with international orders accounting for 46 per cent of the total. Group revenues rose 16 per cent to ₹2.56 trillion, and net profit climbed 15 per cent to ₹15,037 crore during the year. Improved margins and reduced capital intensity lifted return ratios while continued deleveraging brought down the net debt-to-equity ratio to 0.6x from 0.64x a year earlier. 

 

Subrahmanyan said much of the group’s debt was now concentrated in L&T Finance, the group's non-banking financial arm. He reaffirmed L&T’s focus on shareholder value creation through prudent capital allocation, strategic divestment of non-core assets, and investment in high-growth areas, such as energy transition and digital platforms.

 

The company’s infrastructure business continued to anchor its growth, with the successful completion of multiple complex EPC (engineering, procurement, and construction) projects in India and abroad. In the energy segment, L&T has restructured its operations into four verticals — Hydrocarbon Onshore, Hydrocarbon Offshore, CarbonLite Solutions, and Green & Clean Energy — to align better with execution environments and strategic priorities.

 

The offshore unit secured the company's largest-ever order in West Asia while the rebranded CarbonLite Solutions focused on carbon capture technologies, nuclear turbine island systems, and pumped hydro storage. The Green & Clean Energy business was building a scalable ecosystem around renewables, reflecting the company’s commitment to global decarbonisation efforts, he said.

 

On the services side, Subrahmanyan said LTIMindtree has emerged as India’s sixth-largest information technology (IT) firm, enabling digital transformation for global clients, while L&T Technology Services has expanded its global presence with acquisitions in platform engineering, artificial intelligence (AI), and software product development.

 

The company’s real estate arm, L&T Realty, now ranks among India’s top developers, with 70 million square feet of potential development across major cities.