After the state-owned behemoths Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Mazagon Dock Shipbuilders Limited, Larsen & Toubro (L&T) is expected to reach a significant defense business milestone of $1 billion in revenue for the fiscal year 2025–2026, making it India’s largest private military equipment supplier and the fourth largest in the defense sector overall. The
The Indian government’s significant focus on defense modernization and localization is closely correlated with L&T’s growth in defense revenue. Demand for domestic providers like L&T was greatly increased when the government raised the required local procurement to 75% of yearly defense purchases.
L&T’s hi-tech manufacturing business, which showed a 53% increase in revenue in the first half of the fiscal year, now includes defense as part of its precision engineering and systems division. Currently, defense revenue amounts to over ₹8,800 crore ($1 billion), a significant amount when compared to previous years. The
The Indian Army’s artillery modernization is supported by a strong order book that includes repeat orders for artillery systems like the K9 Vajra-T self-propelled howitzers, with plans to deliver 100 more units by year’s end. The
Recent delivery of multipurpose boats and ongoing programs to construct cadet training ships and other navy platforms are examples of naval shipbuilding capability. The
The
Through a ₹200 crore corpus targeted at future defense tech applications, strategic investments are made in defense technology start-ups and innovation partnerships with academic institutions and international partners. The
involvement in the nuclear power industry with a 20% market share goal in line with India’s nuclear energy objective. The
Government measures, including as a seven-year, $130 billion defense modernization plan and a ₹6.81 lakh crore defense budget for 2025–2026, are driving this expansion. The
With geopolitical changes affecting global supply chains, public sector organizations and private conglomerates like Tata Group, Adani Enterprises, and Mahindra Defence Systems are increasing defense production. This is reflected in L&T’s ramp-up. To stabilize revenues and expand internationally, industry experts advise L&T and others to take advantage of export potential outside of India. The
With government policy support, improved manufacturing capabilities, strategic alliances, and a strong order pipeline, L&T’s rise to $1 billion in defense revenue represents a turning point in private sector defense production in India and positions it as a crucial pillar in the country’s defense self-reliance and future capability expansion. The
With this milestone, L&T is just slightly smaller than HAL, BEL, and Mazagon Dock in terms of scale, but it is undoubtedly on a growth trajectory to become a substantial defense industrial behemoth that will greatly contribute to India’s aspirations for military modernization.
