L&T Eyes $1B Defense Revenue Amidst India's Push

Larsen & Toubro is poised to reach $1 billion in defense business revenue this fiscal year, a significant achievement fueled by the Indian government's strong emphasis on domestic defense manufacturing. This financial milestone will establish L&T as the country's leading private sector defense supplier, ranking fourth overall behind state-owned entities.

The company reports that 95% of its defense revenue originates within India, with ongoing projects including trials for a new light tank for the Indian Army and air defense systems for the Indian Air Force. This expansion aligns with India's broader defense modernization strategy and increased mandatory local procurement rates, which have risen to 75% of annual defense purchases.

L&T's burgeoning defense segment contributes to a landscape where conglomerates, public sector enterprises, and private firms are benefiting from the localization drive. While L&T anticipates strong domestic demand, experts advise exploring export markets to ensure sustained growth and reduce reliance solely on government orders.