What is Lakshya 31, Larsen and Toubro's new five-year plan?

L&T achieved the revenue and order inflow growth aims it set in its previous five-year plan called Lakshya 26, while missing the return on equity (RoE) goal. Its performance on its five-year plan stands in stark contrast to companies that fail to meet even their one-year guidance in the face of global volatility.

What are the targets under Lakshya 31?

India’s largest engineering company has set itself a target of 12-15% compounded annual growth from FY26 to FY31. That translates into a doubling of revenue by FY31 to ₹5.8 trillion at the upper end of the target.

The company expects 10-12% compounded annual growth in order inflows. If achieved, at the upper end of the target, that would result in annual order inflows of ₹7.75 trillion by FY31. The company booked new orders of ₹4.4 trillion in FY26, taking its orderbook to ₹7.4 trillion. RoE of 16-17% has been estimated over this period compared with 16.6% in FY26.

“The 12-15% CAGR revenue guidance is good. But the 10-12% order inflow guidance implies that the company has estimated single-digit order inflow growth in the infrastructure segment, which is underwhelming,” said Amit Anwani, VP and lead analyst for capital goods, industrials and defence at brokerage PL Capital.

If infrastructure order inflows grew at a double-digit rate, the overall order inflow could easily achieve a CAGR of 14-15%, he said. This would be due to the rapid growth in the energy and hydrocarbons segments, which receive large orders from West Asia.

“Owning assets goes against the company’s long-stated target of being asset light, which is why it exited the ownership of road assets and now Nabha Power and Hyderabad Metro,” he said.

The company has earmarked capital expenditure of ₹42,400 crore for these projects – industrial electronics ( ₹5,000 crore), semiconductor manufacturing ( ₹3,000 crore), green hydrogen ( ₹15,000 crore), data centres ( ₹10,000 crore), realty business ( ₹4,400 crore) and upgrading the existing hydrocarbon facility ( ₹5,000 crore), as per a report from Antique Stock Broking published on Wednesday.

FY26 revenue of ₹2.86 trillion was beyond its target of ₹2.7 trillion. The order inflow target of ₹3.4 trillion was handsomely beaten with new orders worth ₹4.4 trillion in FY26.

Nehal Chaliawala

Nehal chronicles India’s top conglomerates for Mint. From navigating the complexities of big-bang mergers and large-scale fundraises to decoding high-profile recruitments and seemingly inexplicable corporate pivots, Nehal focuses on unpacking the long-term strategies of the country’s most influential business houses. He aims to provide readers with a clear-eyed view of how these corporate titans shape the broader Indian economy.His professional journey began at The Economic Times in 2018, where he spent over five years before joining Mint in 2023. Over his career, he has tracked diverse sectors like automobiles, metals, cement, power, infrastructure, and renewable energy. He also keeps a close watch on the intricacies of corporate finance and corporate governance. This wide-ranging sectoral experience allows him to better understand India’s large conglomerates that sit at the confluence of these vital industries.Nehal studied mechanical engineering from the Pune University and graduated with distinction in 2017. Driven by a passion for storytelling, he pivoted to journalism immediately after, attending the Asian College of Journalism in Chennai. While his time in the newsroom has made him a healthy sceptic, his engineering roots keep him perpetually inquisitive about how things work—and why they fail.He actively encourages readers to reach out for feedback, collaboration, or news tips. Nehal can be reached via LinkedIn or directly at nehal.chaliawala@livemint.com.