Larsen & Toubro Limited reported a 34 percent year-on-year increase in revenue from its Hi-Tech Manufacturing segment to approximately Rs 33 billion in the third quarter of FY26, driven by execution ramp-up in the Precision Engineering & Systems business. The Precision Engineering order book stood at Rs 315 billion as of December 2025, forming the bulk of the segment’s Rs 379 billion total order book.
The Hi-Tech Manufacturing segment, which comprises Precision Engineering & Systems (PES) and Heavy Engineering, recorded strong execution during the quarter. The segment’s near-term order prospects pipeline was Rs 237 billion, including Rs 190 billion in Precision Engineering and Rs 46 billion in Heavy Engineering.
In clean energy manufacturing, the company has developed an indigenous 4 MW electrolyser stack and is upgrading it to an 8–10 MW configuration. “We have already made a perfect design of a 100% indigenous 4 MW stack. We are now slowly upgrading it to 8 – 10 MW stack,” said Subramanian Sarma, Deputy Managing Director and President.
At the group level, order inflows during the quarter reached Rs 1.36 trillion, up 17 percent year-on-year. The Projects & Manufacturing portfolio contributed Rs 1.16 trillion, marking an 18 percent increase from a year earlier, supported by 30 percent growth in domestic orders and 7 percent growth in international orders.
The total order book stood at Rs 7.33 trillion as of December 2025, up 30 percent year-on-year. Approximately 92 percent of the order book is concentrated in Infrastructure and Energy segments. The geographic mix comprised 51 percent domestic and 49 percent international projects, with 75 percent of international orders from the Middle East. Fixed-price contracts account for 55 percent of the order book, while 45 percent are variable.
The Energy Projects segment secured Rs 460 billion of orders during the quarter. The segment’s order book stood at Rs 2.48 trillion, comprising Rs 1.83 trillion in Hydrocarbon and Rs 0.65 trillion in CarbonLite Solutions. The group’s near-term prospects pipeline increased 7 percent year-on-year to Rs 5.92 trillion, led by growth in CarbonLite Solutions and Precision Engineering.
Net working capital to revenue improved to 8.2 percent in December 2025 from 12.7 percent a year earlier, reflecting stronger collections and improved contractual terms.
Larsen & Toubro Limited is an Indian engineering and construction group with operations across infrastructure, energy, manufacturing and technology services.
