Larsen & Toubro Ltd

- The Realty business may explore external fundraising options, including debt and/or equity, to support land acquisition for upcoming residential or mixed-use projects. - Funding for new business investments in areas like Data Centers, Green Hydrogen, Semiconductors, and Industrial Electronics will focus on strategic partnerships to optimize capital deployment. - The approach includes a business-specific leverage strategy: - L&T Finance will use leverage to support growth. - Green Assets portfolio financing will be project-based. - Realty and new businesses’ leverage will align with adopted business models. - The parent company will provide near-term support for Realty land acquisition. - Overall, capital raising is not a constraint; the company has credibility in financial markets to raise capital as needed. - No explicit mention of immediate plans for large-scale debt or equity issuance beyond these strategic considerations.

- Rs 50 billion capex planned for Industrial Electronics, focusing on industrial automation, robotics, defense-related electronics, excluding consumer B2C and OSAT. - Rs 30 billion targeted for Semiconductor business, mainly for acquisition of IP and lab facilities; no fabrication or OSAT involvement. - Rs 150 billion earmarked for Green Hydrogen with strategic partnerships being evaluated to optimize capital deployment. - Approximately Rs 100 billion allocated to the Data Center business, with investments subject to evolving business and partnership models. - Rs 44 billion allocated for Realty, primarily to develop commercial real estate; land acquisition support provided with potential external fundraising later. - Rs 50 billion planned for upgrading hydrocarbon modular fabrication yard and shipbuilding facility. - FY27 capex includes around Rs 25 billion for core PP&M business, Rs 10 billion for electronics, and Rs 10-20 billion for Data Centers. - Capital raising is not a constraint; focus remains on responsible, risk-adjusted investments with measured returns.

- Larsen & Toubro targets a revenue growth CAGR of 12% to 15% over the Lakshya 2031 plan (till FY31). - For FY27, expected revenue growth is 10% to 12%, factoring a softer first half due to supply chain disruptions and geopolitical issues. - Order inflows are planned to grow at 10% to 12% CAGR during the Lakshya plan, with a balanced 50-50 domestic and international mix, maintaining Middle East as a core market. - Real estate (Realty) plans to scale up with a focus on premium housing and integrated townships, targeting an execution capacity peak of around 100 million square feet over five years. - Data center capacity goals aim to increase from 100 MW initially to approximately 200 MW to attract larger clients. - Electronics business to see capex of about Rs 50 billion focused on industrial and defense electronics, aligned with growing technology markets. - Overall, growth is driven primarily by existing businesses with selective expansion in new, technology-led areas.

- Larsen & Toubro targets a 12% to 15% CAGR revenue growth over the Lakshya 31 plan period, largely driven by existing businesses. - Operating EBIT margins are expected at 16% to 17%, reflecting structurally stronger and higher-quality growth. - ROE guidance is at 16% to 17%, moderated by ongoing investments in Electronics, Green Energy, and Data Centers, which are currently in the investment phase. - Profitable growth is expected especially in Precision Engineering & Manufacturing (P&M), with return ratios more than doubling between FY22 and FY26. - The new businesses may start contributing to revenue only towards the end of the plan. - Near-term margin profile is guided to remain stable for FY27, with expectations of gradual improvement post disruptions caused by geopolitical events. - Recurring PAT grew by 5% YoY in Q4 FY26 despite margin pressures, indicating resilience in earnings.

- As of March 2026, Larsen & Toubro's order book stands at Rs 7.40 trillion, a 28% increase from March 2025. - 92% of the order book is from Infrastructure and Energy sectors. - Geographic split: 48% domestic and 52% international. - Domestic order book of Rs 3.58 trillion comprises: - Central Government: 9% - State Government & Local Authorities: 22% - Public Sector Corporations/State-owned Enterprises: 30% - Private Sector: 39% (up from 21% in March 2025) - International order book of Rs 3.82 trillion: - 78% Middle East - 22% Rest of the World - Approximately 9% of the total order book funded by bilateral/multilateral agencies. - Rs 170 billion worth of orders were deleted in the quarter. - Slow-moving orders constitute roughly 1% of the overall order book. - Prospects pipeline for FY27 is Rs 17.8 trillion (Rs 9.1 trillion domestic, Rs 8.7 trillion international).