Larsen & Toubro (L&T), a prominent engineering and construction conglomerate, has announced a series of significant corporate developments spanning from 2023 to 2025. These updates encompass various aspects of the company's operations, including share buybacks, acquisitions, and new financial instruments.

Corporate Actions and Financial Decisions

In July 2023, L&T's board proposed a share buyback and special dividend consideration, with the record date set for August 2, 2023. This move may signal the company's confidence in its financial position and commitment to returning value to shareholders.

Regulatory Challenges

L&T faced a regulatory hurdle in June 2024 when the Income Tax Department imposed a penalty of Rs. 4.69 crore for the Assessment Year 2020-21. This penalty was related to the company's erstwhile subsidiary, L&T Hydrocarbon Engineering Limited. L&T plans to appeal this decision, demonstrating its approach to addressing regulatory issues.

Strategic Acquisition

In February 2025, L&T acquired the remaining 26% stake in L&T Special Steels and Heavy Forgings Private Limited from Nuclear Power Corporation of India Limited (NPCIL) for Rs. 170.00 crore. This acquisition transformed the entity into a wholly owned subsidiary of L&T.

Business Expansion

L&T secured construction contracts for its Buildings & Factories and Metallurgical & Material Handling businesses. While specific details of these contracts were not provided, this development indicates ongoing activity in these sectors for L&T.

Innovative Financial Instrument

In June 2025, L&T listed Environmental, Social, and Governance (ESG) bonds on the National Stock Exchange (NSE). The key details of this financial instrument are as follows:

This initiative diversifies L&T's funding sources and aligns with the emphasis on sustainable and responsible investing.

Conclusion

These developments showcase L&T's approach to corporate strategy, encompassing shareholder value creation, strategic acquisitions, business expansion, and innovative financial instruments. As the company addresses regulatory challenges and explores new avenues for growth, these moves may impact L&T's performance and market position.

Larsen & Toubro (L&T), the Indian multinational conglomerate, has announced significant wins for its Power Transmission & Distribution (PT&D) business in the Middle East. The company's latest orders, classified as 'Large' and valued between ₹2,500-5,000 crore, underscore its growing presence in the region's power infrastructure sector.

Key Highlights of L&T's New Orders

UAE Super Grid Interconnection Project

• L&T secured an order to engineer, procure, and construct a 400kV substation in the UAE.
• This substation will establish a direct interconnection between Oman and the GCC super grid at the 400kV level.
• The project aims to improve the efficiency of generation capacity utilization and enhance overall grid resilience in the region.

Middle East Substation Expansion

• L&T won orders for constructing new 132kV substations in the Middle East.
• These substations are designed to meet the growing electricity demand in the region.

Saudi Arabia Renewable Energy Integration

• The company received a contract in Saudi Arabia for the turnkey construction of 380kV overhead transmission lines.
• These lines will be crucial for integrating renewable energy power plants into the existing grid infrastructure.

Strategic Importance

These orders reflect the ongoing efforts in the Middle East to modernize and expand their power infrastructure. The GCC super grid interconnection, in particular, represents a significant step towards regional energy cooperation and efficiency.

L&T's involvement in these projects not only strengthens its position in the Middle Eastern market but also aligns with the region's push towards integrating more renewable energy sources into their power grids.

Project Classification

L&T classifies its projects based on value. The recent orders fall under the 'Large' category, as shown in the table below:

These new orders further cement L&T's reputation as a key player in the global EPC (Engineering, Procurement, and Construction) market, particularly in the power transmission and distribution sector.

As the Middle East continues to invest in its power infrastructure and transition towards more sustainable energy sources, companies like L&T are well-positioned to benefit from these long-term trends in the region's energy landscape.