Larsen & Toubro (L&T) share price climbed about 2% in early trade on the NSE after the infrastructure major announced fresh power transmission and distribution orders valued between Rs. 5,000 crore and Rs. 10,000 crore. The new contracts, spread across India and the Middle East, are expected to strengthen the company’s order book and improve earnings visibility.
The stock saw buying interest as investors responded to continued order inflows and the company’s strong position in the engineering, procurement, and construction (EPC) segment.
L&T has won an EPC contract for two 220 kV gas-insulated substations, which will be constructed in the Durgapur–Raniganj–Asansol area of West Bengal. The project requires the construction of transmission lines, which will use advanced conductors and multi-circuit towers.
The project will enhance grid stability while providing dependable power to one of eastern India’s major industrial areas. The upgrade will enable the region to handle increased manufacturing operations and electric power consumption.
L&T’s power transmission and distribution business has also won multiple turnkey contracts from utility companies in the Middle East. The scope covers five high-voltage substations and over 250 km of transmission lines, with voltage levels going up to 500 kV.
One of the projects includes a 400 kV underground cable system, underlining the company’s ability to execute complex and technology-intensive grid infrastructure.
L&T’s share price depends on order inflows because they show investors the company’s future revenue stream. Analysts report that international power transmission investments have risen because of three factors which include rising electricity demand and renewable energy integration and energy security measures.
L&T maintains its status as a major winner from global grid expansion through its extensive project portfolio and successful project execution and expanding international operations. The new contracts received by the company have strengthened investor confidence about the stock, which will grow during the upcoming months.