Larsen & Toubro has secured a large engineering contract to develop three battery energy storage projects in the Middle East, strengthening its position in a segment that is becoming central to renewable-power expansion.
The order was won by the company’s renewables business. L&T has classified it as a “major” contract, placing its estimated value between ₹5,000 crore and ₹10,000 crore under the company’s internal order-classification system.
The precise contract value has not been disclosed. L&T has also not identified the client or named the Middle Eastern country where the projects will be built.
Together, the three battery energy storage systems will provide 6 gigawatt-hours of storage capacity. The contract also covers grid connections, including pooling substations and underground cables.
Liquid Cooling to Support Large-Scale Operation
Temperature control is an important part of large battery installations because excessive heat can reduce efficiency, shorten battery life and increase operational risk. Liquid cooling is designed to maintain more consistent temperatures across battery modules while supporting higher power density.
L&T said the projects will be required to meet strict standards covering plant performance, safety, quality, workforce deployment and construction schedules.
The company’s responsibilities will extend beyond installing battery units. The inclusion of substations, underground cabling and other grid infrastructure makes the contract a wider engineering, procurement and construction assignment.
The scale of the order also signals growing demand for energy-storage infrastructure across the Middle East. Countries in the region are building large solar projects but require storage facilities to make renewable generation available during evening demand and periods of lower sunlight.
Battery systems can also respond quickly to changes in grid conditions. That allows them to support frequency control and supply stability while reducing dependence on conventional power plants for short-term balancing.
Middle East Remains an Important Market
The latest order adds to L&T’s growing pipeline of energy and infrastructure projects outside India.
The company has built a sizeable presence across the Middle East through contracts covering hydrocarbons, power transmission, renewable energy, water infrastructure and industrial facilities.
In January 2025, L&T was selected as a preferred engineering, procurement and construction contractor for the northern section of a large round-the-clock solar and battery project planned in Abu Dhabi.
That wider development combines 5.2 GW of solar-generation capacity with a 19 GWh battery energy storage system. It is designed to supply up to 1 GW of continuous renewable electricity.
L&T has not said whether its newly announced 6 GWh order is connected to that development. The identity of the latest client remains undisclosed, and the company has not provided a project location or commissioning schedule.
The new win follows another major Middle East announcement from L&T. Its hydrocarbon business recently signed a contract to develop gas-compression facilities, including processing systems and two 230 kV substations.
These orders show that overseas infrastructure continues to form a substantial part of the company’s growth pipeline.
Order Book Provides Long-Term Revenue Visibility
L&T entered the current financial year with a strong backlog.
Its consolidated order book was at ₹7,78,954 crore as on June 30, down about 5% from March. International contracts accounted for a significant part of the backlog.
The company received group-level orders worth ₹1,08,014 crore during the first quarter of FY27, up 14% from the corresponding period last year. Major wins came from businesses including transportation infrastructure, residential and commercial construction, heavy engineering and offshore wind.
Revenue from operations increased 7% year-on-year to ₹67,942 crore in the June quarter. International markets contributed approximately 51% of total revenue.
Consolidated profit after tax rose 14% to ₹4,123 crore from ₹3,617 crore a year earlier. Operating profit, however, declined 3% to ₹6,116 crore, while the EBITDA margin narrowed to 9% from 9.9%.
The large order book gives L&T visibility over future work, but the timing of revenue recognition depends on construction progress. Large battery projects require equipment procurement, site development, grid approvals and coordination between multiple contractors and authorities.
The latest order’s financial contribution will therefore be spread across its execution period rather than recorded immediately.
Stock Shows a Muted Reaction
L&T shares showed little movement after the announcement. The stock was trading around ₹4,082 on the BSE during morning trade, down approximately 0.08%.
While the order has been placed within a broad ₹5,000–10,000 crore band, the difference between the lower and upper ends is substantial. Future company disclosures may provide greater clarity as the projects move into execution.
L&T’s renewables business has secured a 6 GWh battery storage order covering three projects in the Middle East. The contract is classified between ₹5,000 crore and ₹10,000 crore and includes storage facilities, substations and underground grid connections.
The win expands L&T’s presence in utility-scale energy storage at a time when Middle Eastern markets are investing heavily in renewable-power infrastructure. The client, country, exact order value and project timeline have not yet been disclosed.
