L&T Secures 'Large' Orders For Delhi, Andhra Government Structure Constructions

Construction bellwether Larsen & Toubro Ltd. has bagged 'large' orders to the tune of Rs 2,500 crore to Rs 5,000 crore for the construction of government structures in New Delhi and Andhra Pradesh, as per an exchange filing on Tuesday.

The company has secured an engineering, procurement and construction order from the Central Public Works Department for the construction of Common Central Secretariat buildings six and seven in New Delhi. The firm also received an order from the Government of Andhra Pradesh for the construction of the State Legislative Assembly.

Both these projects are expected to be executed within a span of 18 months, as per the filing.

The transaction amount is not specified, as L&T issues a range as per the classification of the order. Orders classified 'large' are in the bracket of Rs 2,500 to Rs 5,000 crore, while 'significant' orders signal an amount between Rs 1,000 to Rs 2,500 crore.

'Major' orders indicate a win of Rs 5,000 to Rs 10,000 crore, while 'mega' and 'ultra-mega' orders are in the range of Rs 10,000 to Rs 15,000 crore and over Rs 15,000 crore, respectively.

In recent developments, the company reported its earnings for the final quarter of fiscal 2025, with consolidated net profit rising 25%, surpassing analyst estimates. L&T posted a profit of Rs 5,497 crore in the January-March period.

The company also declared an interim dividend of Rs 34 per share.

• Revenue from operations rose 10.9% to Rs 74,392 crore versus Rs 67,079 crore (Bloomberg estimate: Rs 76,298 crore).

• Ebitda rose 13.4% to Rs 8,203 crore versus Rs 7,234 crore (Estimate: Rs 8,301 crore).

• Ebitda margin stood at 11% versus 10.8% (Estimate: 10.9%).

• Net profit up 25% at Rs 5,497 crore versus Rs 4,396 crore (Estimate: Rs 4,545 crore).

The scrip fell as much as 1.18% to Rs 3,545 apiece. It pared losses to trade 0.27% lower at Rs 3,577.40 apiece, as of 11:15 a.m. This compares to a 0.75% decline in the NSE Nifty 50.

It has fallen 0.82% on a year-to-date basis, but has risen 8.63% in the last 12 months. The relative strength index was at 71, indicating that stock may be overbought.

Out of 35 analysts tracking the company, 29 maintain a 'buy' rating, four recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 9.3%.