Larsen & Toubro (L&T) is poised to reach a major defence business milestone of $1 billion in revenue for the fiscal year 2025-26, establishing itself as India's largest private military equipment supplier and the fourth-largest overall in the defence sector after the state-owned giant companies Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Mazagon Dock Shipbuilders Limited.​

L&T's defence revenue growth closely tracks the Indian government's aggressive focus on defence modernisation and localisation. The government increased the mandatory local procurement to 75% of annual defence purchases, significantly boosting demand for domestic suppliers like L&T.

Defence now forms part of L&T's precision engineering and systems division within its hi-tech manufacturing segment, which saw a revenue jump of 53% in the first half of the fiscal year. Defence revenue currently comprises roughly ₹8,800 crore ($1 billion), a substantial scale compared to past years.​

Several factors underpin L&T's defence expansion:

A robust order book including repeat orders for artillery systems like the K9 Vajra-T self-propelled howitzers, with plans to deliver 100 more units by year-end, supporting the Indian Army's artillery modernisation.​

Naval shipbuilding capabilities, exemplified by recent deliveries of multipurpose vessels and ongoing projects to build cadet training ships and other naval platforms.​

Strategic investments in defence technology start-ups and innovation collaborations with academia and global partners through a ₹200 crore corpus aimed at future defence tech applications.​

Participation in nuclear power sector with ambitions for a 20% market share aligned with India's nuclear energy mission.​

Expansion driven by government initiatives including a ₹6.81 lakh crore defence budget for 2025-26 and a seven-year, $130 billion defence modernisation plan.​

L&T's ramp-up reflects a sector-wide transformation where private conglomerates like Tata Group, Adani Enterprises, and Mahindra Defence Systems alongside public sector units are scaling up defence manufacturing amid geopolitical shifts impacting global supply chains. Industry experts recommend L&T and others leverage export opportunities beyond India to stabilise revenues and grow globally.​

L&T's climb to $1 billion defence revenue marks a watershed in private sector defence production in India, reflecting government policy support, enhanced manufacturing capabilities, strategic partnerships, and a robust order pipeline that collectively position it as a key pillar in India's defence self-reliance and future capability expansion.​

This milestone places L&T just behind HAL, BEL, and Mazagon Dock in scale, but clearly on a growth trajectory to be a major defence industrial conglomerate contributing significantly to India's military modernisation ambitions.

Agencies