Larsen & Toubro’s Heavy Civil Infrastructure (HCI) business vertical has announced a major milestone with a significant order win from Nuclear Power Corporation of India Ltd (NPCIL) for the Kudankulam Nuclear Power Project (KKNPP - Units 5 & 6) in Tamil Nadu.

This order underscores L&T’s commitment to India’s clean energy journey and its strong track record in delivering highly complex, large-scale nuclear power infrastructure projects.

Scope of the Project

The awarded mechanical package for KKNPP Units 5 & 6 includes:

• Installation of nuclear reactor systems and turbine systems, including generator and condenser

• Sea water systems

• Polar and trestle cranes

• Auxiliary equipment supply and installation

• Accessories, piping, and support systems

• Structural steelworks

• Painting, anti-corrosion coating, and insulation

• Comprehensive testing across buildings and structures at the site

The expertise demanded for such an EPC (Engineering, Procurement & Construction) package highlights L&T’s capabilities as a trusted partner for India’s nuclear and clean energy projects.

Project Classification

According to L&T’s order classification:

• Significant Order = ₹1,000 to ₹2,500 crore in value
  This places the contract squarely within that range, reaffirming the scale of the award.

About Larsen & Toubro (L&T)

Larsen & Toubro is a USD 30 billion Indian multinational, operating across EPC projects, hi-tech manufacturing, and services, with a presence in multiple geographies. Known for its customer-focused approach and quality-driven execution, L&T has sustained leadership in engineering and infrastructure for over eight decades.

Stock Market Snapshot (as of September 16, 2025)

• Previous Close: ₹3,667.15

• High: ₹3,704.00

• Low: ₹3,660.85

• 52-Week High: ₹3,963.00

• 52-Week Low: ₹2,967.65

• Mcap (Full): ₹5,08,162.21 Cr

• EPS (TTM): ₹82.94

• PE Ratio: 44.54

• ROE: 17.30%

The order further bolsters investor confidence in L&T’s long-term growth trajectory, particularly in civil construction and clean energy infrastructure.

L&T Wins Major Nuclear Power Contract: Strategic Victory Strengthens India's Clean Energy Mission

L&T Secures ₹1,000-2,500 Crore Kudankulam Nuclear Project Order

Larsen & Toubro's Heavy Civil Infrastructure (HCI) business vertical has won a significant order from Nuclear Power Corporation of India Ltd (NPCIL) for the 2X1000 MWe Kudankulam Nuclear Power Project (KKNPP Units 5 & 6) in Tamil Nadu. This contract, valued between ₹1,000-2,500 crore according to L&T's project classification system, represents a major milestone in India's nuclear power expansion program.

Project Scope and Technical Details

The comprehensive contract encompasses the mechanical package for the nuclear project, including installation of critical components such as nuclear reactor and turbine systems with generator and condenser, sea water systems, and polar and trestle cranes. Additionally, L&T will handle accessories, piping, supports, structural steelwork, painting, anti-corrosion coating, insulation, and full testing across various buildings and structures on site.

The Kudankulam Nuclear Power Project Units 5 & 6 are Light Water Reactors with a combined capacity of 2,000 MW, being implemented with technical cooperation from the Russian Federation under the Inter-Governmental Agreement between Russia and India. Construction commenced in June 2021, with tendering, procurement, manufacturing and progressive delivery of equipment currently in progress.

Strategic Benefits for L&T

Market Leadership in Nuclear Infrastructure

This order reinforces L&T's position as India's leading nuclear infrastructure contractor, with the company already holding more than 50% market share in the nuclear sector. L&T has supplied reactor pressure vessels, steam generators, and specialized forgings for India's nuclear plants, working with both Nuclear Power Corporation of India Limited and global reactor suppliers.

The contract adds to L&T's robust order book momentum, which crossed ₹6.12 trillion at the group level as of June 2025, representing a 25% increase from the previous year. Nuclear energy constitutes part of this massive order book, providing steady revenue visibility for the engineering giant.

Revenue and Stock Performance Impact

Following the announcement, L&T shares gained approximately 2% on September 16, 2025, trading at ₹3,667.20, up from the previous close of ₹3,586.20. The stock has delivered strong performance over the past six months, gaining over 15% and reflecting positive market sentiment toward the company's infrastructure wins.

L&T's energy projects segment has shown robust growth, with net revenue increasing 47% year-over-year in the latest quarter. The company's consolidated revenues for Q1 FY26 stood at ₹63,679 crore, registering 16% growth, while profit after tax increased 30% to ₹3,617 crore.

Long-term Impact and Industry Benefits

India's Nuclear Power Transformation

India has set an ambitious target of achieving 100 GW nuclear power capacity by 2047, representing a twelve-fold increase from the current 8.18 GW. The Union Budget 2025-26 allocated ₹20,000 crore under the Nuclear Energy Mission to develop at least five indigenous Small Modular Reactors by 2033.

This massive expansion creates a $100 billion market opportunity for nuclear infrastructure development. The government is amending the Atomic Energy Act and Civil Liability for Nuclear Damage Act to facilitate private sector participation, potentially attracting $26 billion in private capital.

Energy Security and Clean Power Benefits

Nuclear power provides stable, 24x7 baseload electricity crucial for India's industrialization and urban expansion, unlike intermittent renewable sources. With negligible greenhouse gas emissions, nuclear energy supports India's commitment to net-zero emissions by 2070 and reduces dependency on fossil fuel imports.

The technology offers high energy density, making it land and resource-efficient compared to other power generation methods. Nuclear capacity is expected to reach 22.48 GW by 2031-32 as ongoing projects are completed.

Employment and Economic Growth

The expansion of nuclear power plants generates significant employment opportunities in construction, operations, maintenance, and technology development. L&T's involvement in multiple nuclear projects positions the company to capitalize on this skilled workforce development and technological advancement.

The nuclear sector's growth supports India's broader infrastructure development goals, with companies like NTPC planning 30 GW of nuclear capacity over the next two decades at an estimated investment of $62 billion.

Disclaimer

This blog is for informational purposes only and should not be considered investment advice. Readers are advised to consult their financial advisor before making any investment decisions.