L&T Expands Focus on Defence, Data Centres, and Power Business

Larsen & Toubro (L&T) has invested about ₹2,200 crore in building data centres. Currently, 32 megawatts (MW) are operational, including a 30 MW facility in Kanchipuram, Tamil Nadu, one of the largest in India.

The company aims to scale this to nearly 100 MW, tapping the shift of Indian firms toward third-party data storage and Cloud services from players like Amazon, Google, and Microsoft.

It has also ventured into GPU-based Cloud services through a stake in Indian startup E2E, which works with NVIDIA. L&T runs GPU-powered Cloud floors in Chennai, a business still small but with strong potential.

Opportunities in Global Capability Centres (GCCs)

L&T sees growth in setting up and co-developing global capability centres (GCCs) for multinational companies. These centres are increasingly being built in India instead of outsourcing work to IT service providers.

Defence and Aerospace Strategy

Defence remains central to L&T’s business. The company rebranded its defence arm as “precision engineering” to highlight work across four areas:

• Land systems (bridges, K9 Vajra guns)
• Naval systems (submarines, patrol and warfare ships)
• Space programmes
• Research and indigenisation

The K9 Vajra artillery gun has been a success, with 100 delivered and another 100 in progress. L&T also fabricates submarine parts and naval ships, though competition with state-run shipyards has made this segment challenging.

Nuclear Energy Constraints

While India is open to private involvement in nuclear power, laws around liability remain a hurdle. Only the government-owned Nuclear Power Corporation can currently set up nuclear plants, limiting L&T’s entry.

Thermal Power Revival

Though L&T earlier planned to exit thermal power, rising electricity demand has revived the sector. The company has bagged projects with the Adani Group and others, making the business attractive again.

Its Nabha plant in Punjab is one of India’s most efficient, with a load factor above 90%. However, L&T may divest it if a good buyer shows interest.

Larsen and Toubro Share Price Movement

Larsen and Toubro share price stood at ₹3,576.70 on August 26, 2025, at 11:06 am IST, down by ₹26.40 or 0.73%. The stock opened at ₹3,599.00 and touched a high of ₹3,600.00 and a low of ₹3,567.70 during the session. The company has a market capitalisation of ₹4.92 lakh crore, with a price-to-earnings (P/E) ratio of 31.01. Its dividend yield is 0.95%, with a quarterly dividend amount of ₹8.49. Over the past 52 weeks, the stock has traded between a high of ₹3,963.50 and a low of ₹2,965.30.

Also Read: Upcoming IPOs in August 2025!

Conclusion

L&T is reshaping its future by balancing high-growth bets in data centres, Cloud, and defence with a renewed focus on thermal power. While nuclear power entry remains uncertain due to policy hurdles, the company is positioning itself strongly in India’s evolving energy and defence landscape.

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