Engineering giant Larsen & Toubro (L&T) announced on Monday that it has secured an “ultra-mega” contract from Adani Power Ltd. to build eight thermal power units, each with a capacity of 800 MW, adding up to a total of 6,400 MW of new generation capacity.

L&T categorises contracts worth over ₹15,000 crore as “ultra-mega.” The project will be handled by L&T Energy – CarbonLite Solutions (LTECLS), the group’s business arm focused on advanced power and low-carbon technologies.

The order covers the complete design, engineering, manufacturing, supply, and commissioning of boiler-turbine-generator (BTG) packages, along with auxiliaries and related mechanical, electrical, and control & instrumentation systems.

“In the evolving energy sector, where India’s need for dependable and affordable electricity keeps rising, this order from the Adani Group reaffirms our position as a trusted partner in building the country’s vital energy infrastructure,” said Subramanian Sarma, L&T’s deputy managing director and president.

The win comes on the back of a strong June quarter for L&T, which posted a 29.9% jump in net profit to ₹3,617 crore compared to ₹2,786 crore a year earlier. Revenue rose 15.5% to ₹63,678 crore from ₹55,119 crore, while EBITDA increased 12.5% to ₹6,316 crore. The EBITDA margin, however, edged down to 9.9% from 10.2% in the same quarter last year.

The company has retained its full-year outlook for revenue growth, margins, and order inflows.

At 1:10 pm on Monday, L&T shares were trading 1.53% higher at ₹3,662.50 apiece. The stock has climbed 3.2% over the past month.

Building on past partnerships

Larsen & Toubro (L&T) and the Adani Group have crossed paths on several occasions, though formal partnerships have been sporadic.

One notable instance dates back to 2015, when Adani Ports & SEZ acquired operations of the Kattupalli Port from L&T Shipbuilding, a L&T subsidiary, in what began as a memorandum of understanding and later took shape as a strategic sale. 

Another key connection involves Dhamra Port, established as a 50:50 joint venture between L&T’s subsidiary (L&T IDPL) and Tata Steel. This entity formerly co-owned and operated the port before Adani Ports took over in 2014, acquiring the port entirely. 

Beyond port infrastructure, L&T also executed large-scale projects for IndianOil Adani Ventures, signaling a collaboration in the energy sector. The hydrocarbon vertical of L&T secured an onshore EPC project involving tankages and associated facilities under IOCL’s expansion program.