The engineering and construction major said labour availability remains a challenge for the Indian construction industry despite multiple efforts to address the shortage. It is also seeing workers move to projects in West Asia, adding to pressure on labour availability in India.
L&T said its order booking momentum in West Asia remains strong, with the positive ordering trend seen in the second quarter showing no signs of slowing. Its order book stood at ₹7.79 lakh crore as of June 30, 2026, up 27% year-on-year, with West Asia accounting for 37% of the total.
However, execution conditions have yet to fully normalise, with labour availability, logistics and supply delays continuing to affect project sites.
Logistics remains a challenge
Logistics has emerged as another hurdle, with some supplies delayed because of disruptions to existing routes. L&T said it is working to identify alternative routes to keep projects moving.
The company added that customers have been receptive to the higher costs arising from these disruptions and are willing to compensate for additional expenses, including in some fixed-price contracts.
In Saudi Arabia, L&T said it remains in close contact with customers and is working through challenges affecting some projects in the country.
L&T eyes green ammonia, data centres
Energy accounted for 34% of L&T’s order inflows in the first quarter of FY27, with green energy alone contributing 31%, as the company looks to expand its presence across new infrastructure and energy opportunities.
L&T is in discussions with Japan’s Itochu group, which wants to take an equity stake in a green ammonia project, the company said. It also expects a pipeline of coal gasification projects to emerge over the next two to three years.
L&T said it has established a presence in Europe through an offshore wind project. However, it noted that wind velocities along the Indian coast are not particularly strong, which could limit the development potential of offshore wind projects in the country.
Data centres are another area of focus. L&T said it aspires to expand its engineering, procurement and construction (EPC) work in the sector, with its partnership with Nvidia progressing quickly. The company is looking at data centre capacity in the range of 250–400 megawatts.
Defence pipeline takes shape
On defence, L&T said its Zorawar light tank programme is currently in the development phase and that it is ahead of other players, having been selected for the development programme.The Zorawar is an indigenous 25-tonne light tank being developed by the Defence Research and Development Organisation (DRDO) in collaboration with L&T for the Indian Army. Unlike heavier main battle tanks, it has been designed to be more mobile and suitable for operations in difficult, high-altitude terrain, including areas along India’s northern frontier.
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The tank has undergone developmental trials in desert conditions and high-altitude testing, including firing trials at elevations above 4,200 metres.
The lighter platform is intended to provide the Army with greater mobility in mountainous terrain, where heavier armoured vehicles can face restrictions.
L&T also expects the bid for the Advanced Medium Combat Aircraft (AMCA) programme to come by the end of October and said it is tied up with Bharat Electronics (BEL) for the programme.
Project Ceres
L&T’s comments came on the sidelines of its Project Ceres event, an Australian project aimed at reducing the country’s agricultural sector’s exposure to global fertiliser supply-chain disruptions.
L&T was a subcontractor on the project and supplied a prefabricated unit. The project was managed by a joint venture between Italy’s Saipem and Australia’s Clough.
The project showcases L&T’s capabilities in modular construction, where large components of a manufacturing facility are prefabricated at a specialised yard before being transported to and installed at the final project location.
The approach can help address construction challenges in locations with extreme weather conditions or high labour costs.
L&T currently has three modular manufacturing yards at Kattupalli in Tamil Nadu, Hazira in Gujarat and Sohar in Oman.
