The National Company Law Tribunal (NCLT) Mumbai Bench has admitted the joint company scheme petition involving Larsen & Toubro and L&T Realty Properties Limited. The tribunal scheduled the next hearing for October 6, 2026.

Larsen & Toubro Limited informed stock exchanges on September 1, 2026, regarding the order dated August 18, 2026. The petition seeks sanction for a Scheme of Arrangement under Sections 230 to 232 of the Companies Act, 2013.

Regulatory Proceedings

The NCLT had previously passed a first motion order on June 12, 2026, with rectification orders on June 16 and June 25, 2026. The tribunal directed Larsen & Toubro to convene meetings of equity shareholders within 60 days and send notices to creditors.

The company confirmed it has convened the shareholder meeting and issued notices to creditors as directed. The tribunal also mandated serving notice to statutory authorities including the Central Government, Registrar of Companies, Income Tax Authorities, and sectoral regulators.

Next Steps

Statutory authorities have 30 days from receipt of notice to file representations. If no representation is received, it will be presumed they have no objections. The matter is listed for hearing on October 6, 2026.

What Happened

Larsen & Toubro has received a confirmed mega work order valued between Rs 10,000-15,000 crore from Together AI. The scope involves developing India's largest single-cluster AI infrastructure, defined as an NVIDIA B300 AI Factory with a capacity of 10,000 B300 NVIDIA GPUs. This facility is designed to power Together AI's AI Native Cloud platform for large-scale inference, fine-tuning, and training workloads.

Order In Financial Context

The mega order value equates to approximately 13.5% of the company's average quarterly revenue of Rs 74,246.57 crore. When viewed against the broader disclosed pipeline, the total disclosed order book now sums to approximately Rs 40,000 crore across 4 orders (sum of the orders disclosed across the last 3 fiscal quarters shown in the table below). This backlog represents 0.54 quarters of average quarterly revenue coverage. As a confirmed work order, this value is firm and executable, contributing directly to future revenue recognition once project milestones are met.

Company Order Track Record

Order inflow has remained robust, with ultra-mega contracts securing large-scale industrial, energy, and technology projects. The current mega order win from an international tech entity complements recent awards from Adnoc offshore and Kuwait Oil Company (Koc), reinforcing the company's capability to secure high-value mandates across diverse sectors. Inflow velocity shows stability with major single-quarter wins rather than fragmented smaller orders.

Note: The latest order from Together AI was disclosed on August 13, 2026, falling within Q2FY27.

Execution And Revenue Quality

Consolidated revenue has shown resilience, with operating profit margins (OPM) fluctuating between 10.36% and 12.59% over the last three quarters. No net losses were recorded, indicating stable execution quality. The conversion of backlog to revenue appears steady, supported by consistent net profit generation across all reported periods.

Revenue Growth - Order Wins Translating To Revenue

As Larsen & Toubro has sustained order wins, with significant inflows from energy, steel, and now AI infrastructure sectors in recent quarters, its annual revenue has grown from Rs 158,788.30 crore in FY22 to Rs 292,569.10 crore in FY26, representing a YoY growth of +12.5% based on the latest annual data. This historical trend demonstrates that past order book accumulation has effectively translated into top-line expansion.

Working Capital And Execution Capacity

The balance sheet indicates a current ratio of 1.25x, providing adequate short-term liquidity to fund working capital requirements for new projects. Operating cashflow stood at Rs 16,741 crore in FY26, generating positive free cashflow of Rs 11,931.80 crore after capex. However, the total liabilities/equity ratio is 2.52x, which includes trade payables and other non-debt liabilities rather than just interest-bearing debt. Monitoring whether receivables collection cycles remain efficient as the order book expands is recommended.

What To Watch

• Execution rate: Monitor quarterly revenue run-rate against total backlog to assess acceleration or slowdown in project delivery.
• OPM trajectory on new orders vs historical average: Margin quality on complex AI infrastructure projects may differ from traditional civil or offshore EPCIC contracts.
• Client concentration: Assess what percentage of the disclosed order book comes from top clients like Adnoc offshore, Kuwait Oil Company (Koc), and Together AI.
• Working capital efficiency: Track operating cashflow trends to ensure backlog growth does not strain liquidity due to extended receivables.

Key Observations

• Contract structure: This is a confirmed work order for AI infrastructure development. Revenue recognition will proceed based on project milestones and completion certificates issued by Together AI.
• Valuation check (as of 13 Aug 2026): P/E of 28.0x against ROCE of 16.35%. At the time of this article, valuation was pricing in execution improvement not yet visible in return ratios. (P/E is price-derived and will change; ROCE is from audited financials)
• Leverage flag: Total Liabilities/Equity of 2.52x; balance sheet carries elevated liabilities, and ability to fund working capital for the existing backlog should be monitored.