Shares of Larsen & Toubro Ltd (L&T) were trading in the green and 1% higher on 9 June after the company’s Heavy Civil Infrastructure (HCI) business vertical received a significant order from JSW Energy to carry out the Bhavali Pumped Storage Project (PSP) in Maharashtra.
The order is designated as a “significant” order, meaning its value varies from Rs 1,000 crore to Rs 2,500 crore.
The project is strategically placed in Maharashtra’s Nashik and Thane districts and is designed to have a total installed capacity of 1,500 MW, divided into multiple smaller generating units.
The scope of work involves completing all civil works associated with the project, including the construction of approach roads, higher and lower reservoirs, water conductor systems, pressure tunnels, and an underground powerhouse.
Pumped storage facilities, such as Bhavali PSP, are crucial to ensuring grid stability, particularly as the number of variable renewable energy sources in the power mix increases, according to the business.
L&T reported a 25% YoY increase in consolidated net profit to Rs 5,497 crore for the March quarter. Revenue for the quarter was Rs 74,392 crore, up 11% from Rs 67,078 crore in the previous year.
EBITDA climbed 13.4% YoY at Rs 8,202 crore, falling short of the poll estimate of Rs 8,363 crore. The operating margin increased marginally to 11%, compared to 10.8% in the previous year and the poll expectation.
L&T expects 15% top-line growth in FY26, driven by strong momentum in both domestic and international markets. The company forecasts core operating margins to increase to 8.5% from 8.3% in FY25, owing to operational efficiency and a strong order book.
L&T expects order intake to increase by 10% in the new fiscal year, with prospects of Rs 7 lakh crore in India and Rs 12 lakh crore worldwide. The corporation is optimistic about maintaining international demand momentum.
At 12:42 pm, the shares of L&T were trading 0.73% higher at Rs 3,683 on NSE.
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