Larsen & Toubro Targets ₹15 Lakh Crore Order Book by FY31 Through Expansion and Automation

Engineering and construction major Larsen & Toubro (L&T) has outlined a strategic growth plan to double its current order book of ₹8.5 lakh crore to ₹15 lakh crore by the financial year 2031. Speaking on Wednesday, R Shankar Raman, the company’s President and Whole-Time Director (Finance), stated that achieving a sustained year-on-year growth rate of 15 percent will drive this expansion.

To support this growth, L&T plans to focus on automation, enhance its manufacturing capabilities, and expand its footprint into new international markets, including Central Asia and Europe. Project execution will remain a primary focus area in the face of ongoing inflationary pressures, with the company continuing to hire engineers to accelerate project completion timelines.

Geographically, L&T's revenue distribution is currently split evenly between domestic and overseas markets. Raman estimates that by FY31, India and West Asia will each account for 40 percent of the order book, with the remaining 20 percent coming from new and emerging markets.

The company has already established a presence in Central Asia, where it is currently constructing an airport and a data centre in Uzbekistan. In Europe, L&T is executing a wind energy project valued at ₹50,000 crore. Moving forward, the company is evaluating further opportunities in Australia and hopes to secure additional orders within Europe.

In West Asia, L&T operates across 150 sites and employs approximately 55,000 people. Raman confirmed that all projects in the region are functioning normally, including those in Saudi Arabia, which remains the company's largest market in the area.

Financially, L&T posted a 28 percent growth in order inflows during the second quarter of FY27, while net profit rose 33 percent year-on-year. However, profit margins faced some pressure due to rising raw material and logistics costs. Raman noted that the company remains focused on optimizing return on deployed capital and maintaining a healthy balance sheet.

As part of its operational strategy, L&T is implementing automation solutions within its construction business, deploying robots for tasks such as welding, plastering, and painting. This adoption is intended to maintain the company's competitive advantage, expedite project execution, and mitigate labour availability constraints.

To address human capital needs, L&T's overall workforce grew by 9,000 personnel over the past year. The firm continues to hire graduate engineers consistently and is engaging with educational institutions to align training curricula with industry requirements, bridging the gap between available skills and industrial demands.

"Larsen & Toubro's strategic roadmap highlights the importance of balancing large-scale international expansion with operational efficiency. By integrating automation and robotics into traditional construction workflows, large enterprises can successfully address labor constraints and margin pressures caused by inflation. Furthermore, aligning industrial requirements with academic curricula ensures a sustainable talent pipeline, which is critical for long-term execution and maintaining competitiveness in global markets." — Dr. Shishir Gupta, Founder & CEO, StartupLanes