Building on a strong order book of ₹6,185 crore (about $726 million) in the previous fiscal year, Larsen & Toubro (L&T) is striving to turn its defense business into a multibillion dollar segment.
With a target of ₹30,000 crore in defense exports this fiscal year and ₹50,000 crore by FY29, as well as a domestic defense production target of ₹1.6 lakh crore in FY26, nearly doubling to ₹3 lakh crore by FY29, this strategic move is in line with the Indian government’s ambitious push to modernize and indigenize the nation’s military capabilities.
The production of warships, patrol boats, armored vehicles, artillery weapons, and missile systems are all part of L&T’s extensive defense portfolio. The business has been instrumental in well-known projects like the design and building of India’s first nuclear-powered ballistic missile submarine, the INS Arihant. It has also recently launched multipurpose ships for the Indian Navy from its Kattupalli Shipyard in Chennai.
In order to showcase its end-to-end shipbuilding skills, which include in-house design, modular construction, and lifecycle management, L&T is also building cadet training ships and other navy vessels.
Repeat orders for the K9 Vajra-T self-propelled howitzers were the main driver of the company’s 29% increase in order intake in the defense sector, which reached ₹13,326 crore in the most recent fiscal year. By the end of 2025, L&T plans to provide the Indian Army with a further 100 K9 Vajra-T systems, solidifying its position in the country’s artillery modernization.
The corporation can supply frontline warships, submarines, and specialized platforms to both friendly foreign and Indian navies because to its cutting-edge shipyards and design centers.
The leadership of L&T sees enormous potential in the defense industry, provided that the government is willing and that policies are supported. The president and CFO of L&T, R Shankar Raman, emphasized that the industry might grow to the extent that the government’s commitment permits, with an emphasis on supplying shipyards with defense orders and increasing capacity as required.
The business is also taking advantage of the government’s realization that further private sector involvement is necessary to speed up military upgrades, particularly in view of state-run defense companies’ capacity limitations and order backlogs.
Due to geopolitical events like the Russia-Ukraine war, which have interrupted vital supply channels and raised prices for defense contractors, L&T is well-positioned to profit from the worldwide realignment of defense supply chains.
Additionally, the corporation is investing in innovation and technology, building up a corpus of ₹200 crore for start-up investments, especially in defense applications like radars, traction devices, and launching systems. L&T is willing to collaborate with start-ups in fields such as load and power management, taking advantage of India’s expanding defense technology innovation environment.
In keeping with the government’s Nuclear Energy Mission, which has set aside ₹20,000 crore for the study, creation, and implementation of Bharat Small Modular Reactors, L&T is also aiming for a 20% market share in the nuclear power sector. The company’s cooperative strategy involves alliances with leading international technology companies and Indian academic institutions, which enhances its R&D capacities and pipeline for upcoming products.
significant government backing, an extensive manufacturing and design environment, significant order growth, and a proactive commitment to innovation and global cooperation are the pillars of L&T’s plan to expand its defense sector. These elements put L&T in a strong position to become a major force in India’s transition to independence and worldwide competitiveness in the defense industry.
