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L&T aims to double revenue, order inflow by FY26

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The company has taken the base year for these targets as FY21. It also plans to have a return on equity excluding any exceptionals of over 18% in FY26 versus a RoE of 10% in FY21 and 11% in FY22.

Larsen and Toubro (L&T) plans to double its revenue and order inflows by financial year 2026, the company said on Thursday laying out a five-year plan.

As part of the ‘Lakshya 2026’, L&T plans to have a turnover of Rs 2.7 trillion and an order inflow of Rs 3.4 trillion, resulting in a CAGR of 15% and 14% respectively. The company has taken the base year for these targets as FY21. It also plans to have a return on equity excluding any exceptionals of over 18% in FY26 versus a RoE of 10% in FY21 and 11% in FY22.

SN Subrahmanyan, CEO and managing director, L&T, said, “We have gone through the most challenging times in the history of the organisation and the world, and in spite of that we have shown terrific sustenance from growth and revenue point of view and profitablity as well. Challenges will keep coming, but the 2026 story tells that we are going to double ourselves in terms of revenue.”

He said the aggressive growth targets will also mean more hiring. “It is safe to suggest that given the Rs 2.7 trillion turnover that we target by 2026, the numbers will go up by 60%,” Subrahmanyan said. At present, the company employs 195,000 staff, including in its IT business, and 290,000 labourers at any point of time.

The company will focus on five major strategic pillars. All the businesses that will form a part of the core businesses will be value accretive.

R Shankar Raman, chief financial officer, L&T said, “What this means is targeted, selected bidding and razor-sharp execution. We will also reduce our exposure to non-core business, particularly the concession business. The idea is to become asset-light while becoming more profitable.”

As of now, the company plans to de-risk itself from the Hyderabad Metro, divest its development projects business and sell Nabha Power project.

The company will also move into the green energy portfolio of businesses, which will have multiple opportunities for manufacturing, projects, services and even development, which would emerge as a prominent vertical over the next three-four years. The company will scale up its e-commerce and digital businesses, while IT businesses will continue to grow at a faster pace. “The idea of this plan is that we become more sustainable, more valuable and create wealth for our shareholders,” he said.

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