L&T wins order worth over ₹15k cr for hydrocarbon offshore biz; stock up 1%

The board of directors of L&T is scheduled to meet today i.e. on July 29, 2025 to consider and approve the unaudited financial results of the company for Q1FY26

Larsen & Toubro (L&T) share price moved higher by 1 per cent to  ₹3,461.20 on the BSE in Tuesday's intraday trade, aided by heavy volumes, after the company won an ultra-mega order for its hydrocarbon offshore business from a client in the Middle East.

 

While the company did not specify the exact value of the order, L&T's order categorisation put an 'ultra mega' contract under 'more than ₹15,000 crore' bracket. Below this, 'Mega' contract is in the range of ₹10,000 crore to ₹15,000 crore, 'large' contract in the range of ₹2,500 crore to ₹5,000 crore, and 'significant' contract ranges between ₹1,000 crore and ₹2,500 crore, as per L&T's order specifications.

 

 

The hydrocarbon offshore order encompasses multiple offshore packages, and the scope includes engineering, procurement, construction and installation of offshore structures, along with the upgradation of existing facilities, L&T said.

 

The vertical is a leading provider of engineering, procurement, construction, installation & commissioning (EPCIC) solutions in the offshore oil and gas sector.

 

Notably, L&T has established a strong competitive position in the energy and hydrocarbon sectors in Saudi Arabia and other Gulf countries, with significant order book growth since its foray into the region 10 to 15 years ago.

 

Separately, on July 24, 2025, the Buildings & Factories (B&F) business vertical of L&T secured large orders in India and abroad.  Check List of Q1 results today

L&T Q1 results today

 

Meanwhile, the board of directors of L&T is scheduled to meet today i.e. on July 29, 2025 to consider and approve the unaudited consolidated and standalone financial results of the company for the quarter ended June 30, 2025 (Q1FY26).

 

At 12:27 PM, L&T share price was trading 0.73 per cent higher at ₹3,447.15, as compared to a marginal 3.66 points dip in BSE Sensex at 80,887.36. The average trading volume on the counter jumped over 10-fold on the BSE. A combined 1.3 million equity shares have changed hands on the BSE (0.77 million shares) and NSE (0.53 million shares).

 

That said, in the past one month, L&T has underperformed the market by falling 6 per cent as against a 3 per cent decline in the BSE Sensex.

 

Fitch Ratings has affirmed L&T's long-term foreign- and local-currency issuer default ratings (IDRs) at 'BBB+' with a stable outlook.

 

The ratings reflect L&T's strong market position as a large global engineering and construction (E&C) company with above-average profitability and solid revenue visibility. The rating agency believes L&T's robust record of steady margins and diversification into stable, high-margin IT and technical services buffers its ratings against the inherent risks in the E&C sector. The ratings also reflect L&T's strong financial structure and sound financial flexibility.

 

The large order backlog of $68 billion translates into an order book/revenue ratio of around 3.0x in the E&C business for the financial year ended March 2025 (FY25). This is markedly higher than other E&C peers, and Fitch Ratings believes it lends a high degree of revenue growth visibility despite the sector's inherent cyclicality. The rating agency expects continued robust growth in L&T's order book, considering the government's focus on boosting India's infrastructure.

 

"We expect L&T's Ebitda margin to remain at 9 per cent-10 per cent over FY26 and FY27 (FY25: 9.1 per cent). An increase in overseas orders would cause a moderate rise in the share of fixed-price contracts, but L&T's adequate risk management, which has kept margins on fixed-price contracts broadly in line with its cost-plus contracts, should limit the impact," Fitch Ratings said in rating action on June 30, 2025.