Top 7 capital goods, engineering companies bagged Rs 1 trn orders in Q3

Data on brokerage estimated new order wins for top-7 capital goods and engineering firms (excluding Hindustan Aeronautics) combined was upwards of Rs 1 trillion

Top seven companies in the capital goods and engineering space combined -- excluding Hindustan Aeronautics -- are estimated to have won more than a trillion rupees worth of new orders in the third quarter of the financial year 2025 (Q3FY25).

 

Some of the estimated big order wins in Q3FY25 include Larsen & Toubro’s (L&T’s) order win from NTPC for setting up thermal power plants, which analysts estimated to be worth Rs 22,000 crore.

 

While the new order inflow was a mixed bag, analysts in the long-run, anticipate a strong pipeline.

 

Data on brokerage estimated new order wins for top seven capital goods and engineering firms (excluding Hindustan Aeronautics) combined was upwards of Rs 1 trillion.

 

The same set of firms a year ago combined reported Rs 1.29 trillion worth of order wins, however, the quarterly-reported number is not comparable, given companies do not individually disclose all orders.

 

Analysts in their reports estimated a combined order book for these top-seven firms of Rs 8.65 trillion at the end of the quarter.

 

Commenting on the order inflow trends, analysts with Motilal Oswal termed it to be a “selective improvement”. 

 

“With FY25 being an election year, order inflow was expected to be weak, but it is anticipated to ramp up from Q4FY25 onwards. However, ordering has remained strong across thermal power, renewables, T&D, data-centres, buildings, and factories, while it has been weak in water and railways,” the brokerage firm said in a recent note.

 

Despite the FY25 lull in new order wins, analysts remain bullish on the long-term prospects. Those with BNP Paribas in a January 7th report on the sector have estimated a Rs 22 trillion worth of annual opportunities in the sector.

 

Of the estimated potential, many remain bullish on non-transport segments such as water and defence.

 

In the BNP Paribas estimated FY27 order opportunities, water at Rs 1.52 trillion and defence at Rs 1.8 trillion, top the chart in the domestic space.

 

Analysts at Jefferies hold a similar view, saying “On defence, our earnings drivers are linked to domestic manufacturing focus, import substitution and exports vs material rise in defence spend,” adding, “US$100-120 billion domestic is the defence opportunity over 5-6 years with current policy just continuing vs any material change and implies visible 13 percent industry CAGR in FY24-30E.  Exports focus if it materialises takes the pie for domestic companies to 15 per cent CAGR.”