Industry Odisha Bureau, Aug 29: India’s noted engineering and infrastructure firm Larsen and Toubro (L&T) has reportedly decided to exit from its ongoing ownership of conventional assets as it has reportedly opted for focusing on owning and operating new-age assets in order to generate recurring revenue henceforth.
Media reports, citing reliable sources, have stated that, “L&T now aims at generating recurring revenue from high-margin sectors such as data centers, green hydrogen production and electronics manufacturing.”
Media reports, quoting analysts and experts, have added that, “Such a strategic shift in L&T’s latest business policy is deemed to be a pivotal part of its broader strategy to enhance its return on equity and adapt to the changing economic landscape.”
Citing certain glaring instances, media reports have further stated that, “While L&T Vyoma currently operates data centres with 32 MW capacity, and broke ground on a 100 MW facility in Navi Mumbai with a total of 200 MW planned additional capacity, L&T Energy Greentech is establishing a 10,000 tonnes-per-year green hydrogen facility for Indian Oil Corporation in Panipat, Haryana.”
On L&T’s economic front, media reports have also stated that, “L&T reported consolidated revenue of Rs 67,942 crore, up 7% year-on-year (YoY) for first quarter (Q1) of fiscal year 2026-27 (FY27), while its consolidated order book grew to a record Rs 7,79,000 crore as of June 30, 2026, marking a 27% increase year-on-year (YoY). Besides, L&T’s net working capital-to-sales ratio improved to 4.9% in Q1 FY27 from 10.1% in the prior year quarter, demonstrating tighter working capital management amid the asset-heavy strategy shift”.
Media reports in this context have further added that, “L&T reported a top line of Rs 2.9 trillion, and booked fresh orders worth Rs 4.4 trillion in FY26. Its total order book stood at Rs 7.4 trillion at the end of FY26, and stands at Rs 7.8 trillion currently.”
