Investor Update: L&T Secures Major Strategic Order for Riyadh Metro Extension

Executive Summary Larsen & Toubro (L&T) has successfully secured a "Major" contract from the Royal Commission for Riyadh City, Saudi Arabia. This significant win underscores L&T’s continued leadership in heavy civil infrastructure and strengthens its order book visibility in the Middle East region. Key Deal Highlights Valuation: The order falls under L&T’s "Major" classification, placing the value between ₹5,000 crore and ₹10,000 crore. Project Scope: The mandate involves the design and turnkey construction of an 8.4 km extension to the Red Line (Line 2) of the Riyadh Metro Network. Technical Specifications: The construction comprises complex engineering requirements, including both elevated and underground sections, alongside the development of five new metro stations. Consortium Structure: This mandate is part of an "ultra-mega" project awarded to a global consortium. L&T will execute the work alongside partners Webuild SpA, Nesma & Partners Contracting, Alstom, and IDOM. Market & Financial Context This announcement coincides with positive market sentiment surrounding L&T. Stock Performance: Following the news, L&T shares were trading up 0.9% at ₹3,820.7 (as of morning trade, Jan 28, 2026), reflecting investor confidence. The stock has appreciated by approximately 11.95% over the past year. Earnings Outlook: This order inflow aligns with expectations for strong operational performance. L&T is scheduled to announce its Q3 earnings later today (Jan 28), with analysts forecasting healthy execution momentum and improved margins despite a relatively subdued quarter for order announcements across the broader sector. Strategic Implication This contract reinforces L&T's capability to secure and execute large-scale, cross-border infrastructure projects. It significantly bolsters the Heavy Civil Infrastructure vertical's pipeline and provides clear revenue visibility, offsetting domestic volatility with strong international exposure.