L&T's Lakshya 31 aims to nearly double revenue by FY31.
The company plans ₹43,000-45,000 crore investments across key sectors.
Green hydrogen, clean energy, semiconductors and automation are major focus areas.
India's largest engineering company, Larsen & Toubro, has unveiled an ambitious five-year strategic roadmap called "Lakshya 31", aimed at nearly doubling its revenue by the financial year 2031. The plan was announced alongside the company's results for the fourth quarter of FY26.
At its core, Lakshya 31 is a ₹43,000-45,000 crore investment programme spread across multiple business verticals. The plan targets sectors expected to witness significant global growth over the coming decade like clean energy, semiconductors, artificial intelligence, industrial automation and digital infrastructure. It also strengthens L&T's traditional engineering and infrastructure businesses.
1 May 2026
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The company has set a compounded annual growth rate (CAGR) target of 12-15% in revenue between FY26 and FY31. At the upper end of that range, this would translate into revenues of ₹5.8 trillion by FY31, roughly double the ₹2.86 trillion recorded in FY26. Order inflows are expected to grow at 10-12% CAGR, potentially reaching ₹7.75 trillion annually by FY31, up from ₹4.4 trillion booked in FY26. The company's total orderbook currently stands at ₹7.4 trillion.
L&T has also estimated a return on equity (RoE) of 16-17% over this period, compared with 16.6% in FY26.
Where Is the Money Going?
The single largest allocation under Lakshya 31 is directed at green hydrogen and clean energy. L&T has earmarked nearly ₹15,000 crore for green hydrogen projects and related initiatives. The company sees long-term opportunity in renewable energy as industries and governments worldwide accelerate efforts to cut carbon emissions. Green hydrogen is increasingly seen as a key solution for industries like steel, chemicals and transportation, where cutting carbon emissions is no easy task.
The plan also includes operating green hydrogen and ammonia plants. However, a Mint report flagged these as less margin-accretive, noting they could weigh on the company's overall return on investment.
On the technology front, L&T has allocated around ₹3,000 crore towards semiconductor-related activities, including intellectual property acquisition, laboratory infrastructure, chip design capabilities and specialised electronics solutions. Target application areas include mobility, industrial automation, energy systems, and advanced electronics manufacturing.
A further ₹5,000 crore has been set aside for industrial electronics and automation, covering robotics, communication systems, manufacturing automation and electronic platforms used across industrial operations.
Brokerage firm JM Financial noted that the investments in semiconductors, electronics, and data centres "appear to be in preparation for growth in the next decade." The firm maintained a "BUY" rating on the stock with a target price of ₹4,700, citing the positives of Project Lakshya.
Core Businesses Get Attention Too
Beyond technology and energy, L&T plans to invest around ₹5,000 crore in modernising its hydrocarbon modular fabrication yards and relocating certain facilities to sharpen execution in oil, gas, petrochemical, and heavy engineering projects.
Another ₹4,400 crore has been earmarked for its real estate business. The plan also outlines creating a separately listed real estate entity, a move that JM Financial said could drive core margins in the near term, given the segment's higher profitability.
Learning From the Last Plan
Lakshya 31 builds on the foundation of its predecessor, "Lakshya 26", and L&T's track record under that plan offers useful context. The company beat both its revenue and order inflow targets. FY26 revenue of ₹2.86 trillion exceeded the target of ₹2.7 trillion, and order inflows of ₹4.4 trillion comfortably surpassed the ₹3.4 trillion goal.
The one miss was on RoE. L&T achieved 16.6% against a target of 18%. That shortfall is relevant because Lakshya 31's RoE guidance of 16-17% is set at a similar level, suggesting the company may be calibrating expectations more conservatively this time.
Market Reaction
Despite the scale of the announcement, markets were not immediately impressed. Shares of L&T fell 1.18% on the BSE on May 6, the day the Q4 results and Lakshya 31 were announced, closing at ₹4,008.35. The shares have been in the red since. The stock was changing hands at ₹3966.00 or 1.40% lower on May 8.
JM Financial acknowledged near-term headwinds but remained constructive, pointing to strong underlying momentum in international order inflows, particularly from West Asia, as a key long-term positive.
Management guided for 10-12% order inflow growth over FY26-31, which the brokerage described as a key underpinning of the company's long-term prospects.
