Dear Shareholders,

The year under review, 2025-26, was marked by significant shifts in the global technology, economic and geopolitical landscape. Advances in Artificial Intelligence (AI) continued to drive innovation and transformation across industries, while the shifting global tariff regimes and the conflict in West Asia have disrupted supply chains, energy markets and capital flows.

Amidst this evolving environment, the Indian economy remained resilient. Increased public investment in infrastructure and initiatives promoting Aatmanirbharta (self-reliance) reinforced India’s position as the fastest-growing major economy. As a management, we are trying our best to get mentally used to events beyond our comprehension and lookout − like the COVID-19 pandemic, Suez Canal blockage, Red Sea challenge, tariffs, unnatural price increase, conflict in West Asia, to name a few.

For Larsen & Toubro, 2025-26 was a year of steady progress. Record order inflows, strong revenue growth and improved profitability strengthened your Company’s presence across construction and infrastructure, hi-tech manufacturing and technology-driven services, while its continued focus on emerging sectors remained aligned with long-term strategic priorities.

The evolving situation in West Asia creates some near-term uncertainty. As a strategically important market for Larsen & Toubro, the developments in the region are being closely monitored by the management, with priority accorded to employee safety, business continuity and asset protection. Over time, the restoration of normalcy may also create opportunities for rebuilding and investment activity.

Backed by nearly nine decades of experience in navigating external challenges, your Company remains confident, resilient and focused on delivering stable and consistent performance.

Growth amidst a global reset

The operating environment in FY 2025-26 was characterised by volatility, uncertainty, complexity and ambiguity. Developments in global trade because of imposition of tariffs and countermeasures contributed to periods of market volatility. Disruptions in supply chains added to the uncertainty for multiple sectors such as transport and logistics, agriculture, industry and technology, with broader implications for economic growth. Geopolitical complexity intensified with the escalation of long‑standing tensions in West Asia. Meanwhile the ambiguity surrounding rapid advancements in AI has also opened up huge opportunities, particularly in knowledge‑intensive domains. In such times, leadership is not measured by the absence of challenges, but by the clarity, conviction and composure of the response to such situations.

Navigating this landscape has reinforced two beliefs. First, that leadership today demands both foresight and adaptability. Second, that sustainable, accelerated growth will ultimately be led by people.

Technology and AI can be great facilitators, but the direction of progress has to be set by human beings who are driven by integrity, domain expertise, competency, and are guided by a purpose to create a better tomorrow for humanity. We are therefore intensifying our focus on grooming talent and nurturing future leaders who have the courage to take a ‘leap’ — to innovate, to execute, and to uphold the L&T ethos while creating value for all stakeholders.

The Gulf Cooperation Council (GCC), accounting for nearly one-third of your Company’s annual revenue of USD 32 billion, is a vital market for us. The conflict in the region has barely impacted us. It is business as usual at the 100 odd project sites there, with no material disruption to invoicing or collections. More importantly, all our people and assets are safe. This has been possible because of the strength of our client relationships — built over decades of trust, delivery and transparency. That ensured continuity and kept opening new avenues for collaboration on a continual basis.

Apart from clients, our vendor partners too face challenges in these circumstances. Your Company remains focused on addressing that through continued engagement with them so that we can continue to collaborate on mutually acceptable terms.

Thane Creek Bridge III - connecting Mumbai & Navi Mumbai, Maharashtra

The domestic market, which accounts for approximately half of the order book, offers resilience against global uncertainties. While Government of India is committed to continue its focus on infrastructure investments, its industrial focus is strategically shifting towards new-age technologies and sustainability, aiming to transform the country into a global manufacturing and innovation hub by 2047. These are expanding the horizon of opportunities for your Company.

Looking ahead, we expect sustained demand across infrastructure, hydrocarbon, renewables, power transmission & distribution, power capabilities and water treatment in both domestic and international markets. The passage of the SHANTI (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) Act is also expected to spur interest in small modular reactors, an area of relevance to your Company given its decades-long expertise in engineering and manufacturing critical reactors and pressure vessels, including for the nuclear sector. In India, early signs of renewed private investment across sectors such as energy transition, real estate, data centers, electronics, semiconductors and select traditional industries are expected to create additional opportunities for the Company.

In this backdrop, a few external factors continue to require careful consideration. Cash conservation is being pursued across the Group in a focused manner with increased emphasis on working capital management. In addition, cybersecurity readiness and network resilience are also being stepped up. The Company is adopting a selective and disciplined approach to project bidding, supported by clear guardrails on sectors and geographies addressed, without any compromise on quality.

Challenging phases also provide an appropriate context to focus on enhancing internal capabilities and preparedness, including the following:

• Exploring opportunities on how best to dovetail technology into every aspect of operations for achieving higher productivity and efficiency
• Pursuing selective collaborations and strategic acquisitions to enable access to critical capabilities and strengthen long‑term competitive positioning
• Encouraging employees to embrace AI to upgrade skills and remain future-ready
• Stepping up team-building activities to foster an atmosphere of innovation through collaboration

Varanasi Cricket Stadium, Gajari, Uttar Pradesh

Safety first

Workplace safety is of paramount importance. Your Company has evolved from its ‘Mission Zero Harm’ safety philosophy to a more proactive ‘Vision Know Harm’ (phonetically ‘Vision - No Harm’). While ‘Zero Harm’ (i.e. no loss of life or serious injuries) remains the ultimate goal, ‘Know Harm’ strategy strives to sensitise employees and workers in spotting risks in advance and empowers them to take corrective action. Extensive use of digital technologies is made to monitor safety lapses, detect high-risk activities and issue alerts real-time. As a result of these, during the year your Company has clocked 1,369 million accident-free working hours.

To make occupational health and safety integral to its operations, the Company has institutionalised a structured Reward and Penalty mechanism for select EPC businesses. Under this framework, pre-defined EHS performance targets are linked to financial incentives and disincentives at the business unit level. Performance against these targets has a direct bearing on performance-linked pay outcomes for employees within the respective units, thereby strengthening accountability and oversight for safety performance.

Group businesses

Building on the success of Lakshya 2026, your Company has now embarked on its next 5-year strategic growth plan, Lakshya 2031, to enhance the agility and resilience of its business model. The objective is to make the organisation more future-ready through accelerated adoption of digital technologies (particularly across the core verticals), improved profitability, and continued incubation of new-age businesses. As your Company continues to explore opportunities in emerging sectors and new geographies, the grooming of next-generation leaders capable of navigating the digital age is a priority. While some businesses of your Company may face temporary headwinds due to the ongoing geopolitical uncertainties, the well diversified portfolio of projects, products, services and solutions will ensure a steady and balanced mix of revenue streams.

1. Core EPC Business

Your Company continues to enjoy market leadership in the core construction businesses of:

(A) Infrastructure

The continued pursuit for quality and timely completion while executing large-scale, complex EPC projects has always been the hallmark of your Company.

Highlights of the year:

• Kartavya Bhavan 1, 2 & 3 and Seva Teerth in Delhi inaugurated by Prime Minister of India
• Phase 1 of the Navi Mumbai International Airport in Maharashtra inaugurated by Prime Minister of India
• Inauguration of Phase 1 of Patna Medical College and Hospital in Bihar which, upon completion, will become world’s second-largest hospital
• Achieved significant milestones at the Rajasthan Atomic Power Plant (RAPP) units 7 & 8 with the project’s Natural Draught Cooling Towers (NDCTs) and related works being executed ahead of schedule
• Inauguration of the south-side arm of Thane Creek Bridge-III in Maharashtra

• Inauguration of Gateway of Guwahati on the Brahmaputra River in Assam, India’s first modern river ferry terminal and jetty
• Commercial operation started on the entire section of mainline 182 TKM of the Delhi-Meerut RRTS after the completion of slab tracks
• Delivered multiple landmark commissioning at Tata Kalinganagar
• Inauguration of the 112.5 MW Goaltore solar power plant in West Bengal, making it one of the largest renewable power projects in eastern India
• Successful beaming of a critical 156 km transmission line connecting Rooppur and Gopalganj, marking a significant boost for Bangladesh’s energy infrastructure

(B) Energy

Your Company pursues growth opportunities in this sector through four distinct business verticals: Hydrocarbon Onshore, Hydrocarbon Offshore, Offshore Wind and CarbonLite Solutions.

Highlights of the year:

• Successful completion and commissioning of the Jafurah Gas Compression Project Phase-1 for Saudi Aramco in Kingdom of Saudi Arabia
• Successful commissioning of the Residue Upgradation Facility (RUF), with a capacity of 3.55 MMTPA, for Hindustan Petroleum Corporation Limited (HPCL) at Visakhapatnam in Andhra Pradesh
• Hydrocarbon Offshore’s successful energisation of all facilities under the Marjan Increment Package 2 project for Saudi Aramco in Saudi Arabia
• Completed Daman Upside Development Project and enabled ONGC to monetise earlier than their original plan by offering innovative solutions
• Successful completion of the BGEPIL Tapti Decommissioning Project, India’s first full-scale offshore decommissioning initiative
• Achieved the Commercial Operation Declaration (COD) for Unit-1 at 2x660 MW SJVN thermal power plant in Buxar, Bihar
• Achieved the COD for Unit-2 at the 2x660 MW Khurja super thermal power plant in Uttar Pradesh

2. Hi-Tech Manufacturing

Your Company has been a pioneer in import substitution through the development of indigenous technologies, in alignment with and ahead of India’s evolving Aatmanirbharta vision. With advanced Industry 4.0 practices in place, the Heavy Engineering (HE) vertical continues to lead globally in engineered-to-order equipment. Through pioneering shop modernisation using robots/cobots, significant productivity gains are being realised — for instance, a single operator can now simultaneously run three overlay welds. The Precision Engineering and Systems vertical is well positioned to capitalise on the Government of India’s localisation thrust across the defence, aeronautical and space technology domains.

Highlights of the year:

• HE successfully manufactured one of the heaviest Cr-Mo-V Hydrocracking Reactor for ExxonMobil’s Baytown Refinery Project in Texas, USA
• L&T and Hindustan Aeronautics Ltd. jointly produced India’s first industry-manufactured PSLV rocket
• Unveiling of Zorawar Light Tank, a state-of-the-art platform jointly developed by the Defence Research and Development Organisation and L&T
• Delivery of the first Anti-Submarine Warfare - Shallow Water Craft, the first weapon-intensive platform created jointly by L&T and Garden Reach Shipbuilders & Engineers, reflecting a new era of synergistic defence production
• HE’s MRU (modification, revamp, upgrade) division successfully executed one of the most complex and time-critical refinery turnarounds for Saudi Arabia’s PRC HOFCC Converter Unit, housing the world’s second largest FCC reactor and regenerator

• Creation of a ₹ 200 crore corpus to invest in startups for developing advanced technology, particularly in areas such as launch systems, radars, and traction devices
• Formation of L&T Electronic Products & Systems, a dedicated business segment under the PES vertical, for creating IP-driven, design-led electronics product platforms to support future growth across energy, mobility, industrial automation, electronics manufacturing and strategic electronics

3. Services (IT, Engineering and Financial)

Your Company’s listed services businesses remain focused on longterm value creation.

(A) LTM: LTIMindtree, India’s 6th largest IT services company, rebranded as LTM Limited to position itself as an AI-centric ‘Business Creativity Partner’ for the agentic enterprise era. Central to this is the BlueVerse ecosystem, with BlueVerse Studio serving as a collaborative space where ideas are tested, solutions accelerated and clients empowered to scale AI responsibly. This marks a deliberate shift from traditional IT services to AI-led innovation and transformative business outcomes. A few notable achievements during the year include:

• Recorded its largest-ever deal wins during the year
• Contributed to one of the largest SAP ERP implementations within the Ministry of Defence by partnering with The Army Ordnance Corps to modernise inventory operations across the vast network of Indian Army depots
• Selected by Government of India’s Income Tax Department to implement the PAN 2.0 Project for modernising the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) infrastructure
• As part of ICICI Bank’s ‘Vision 2025’ plan, LTM developed a unified cloud architecture that integrates structured and unstructured data within a single, secure enterprise environment

(B) L&T Technology Services: A global leader in engineering R&D (ER&D) services with a presence in over 25 countries, LTTS combines its deep engineering expertise with digital technologies to assist Fortune 500 companies and top ER&D spenders in developing, testing and manufacturing innovative products. A few notable achievements during the year include:

• Initiated a shift to ‘Engineering Intelligence’ by combining physical and digital AI
• Launched proprietary AI frameworks and platforms and a new agentic AI platform to accelerate product development
• Inaugurated a new ITAR-compliant Engineering Design Center in Plano, Texas, tailored for advanced AI, digital manufacturing and cybersecurity, to support defense-grade product development, smart manufacturing, and smart city technologies
• The patents portfolio for FY 2025- 26 stood at 1,706, including 1,033 co-authored filings and 673 own filings, of which 273 are in the AI / GenAI domain

(C) L&T Finance: LTF is a technology-driven NBFC with a domestic ‘AAA’ rating and a 98% retailised loan book, serving rural and urban markets. A few notable achievements during the year include:

• Completed the acquisition of the gold loan business of Paul Merchants Finance Private Limited along with its 130 branches and the transfer of the gold loan portfolio of J 1,350 crore
• Assigned debut Investment Grade Credit Rating by International Rating Agencies (S&P and Fitch)
• Rollout of ‘Project Cyclops’, a proprietary AI-driven threedimensional digital credit engine, designed to assess creditworthiness with unmatched precision, has led to a significant improvement in asset quality and strengthened growth momentum in two-wheeler and farmer finance businesses

• Initiated build of ‘Project Nostradamus’, an automated realtime cross-sell, risk and portfolio management platform leveraging macro parameters and alternate data

4. Other businesses

Green Energy: The Company’s entry into the green energy sector is supported by an integrated business model spanning the full industry value chain, structured around two core segments:

- Asset Development for Green Hydrogen and its derivatives

- Hi-Tech Manufacturing for Electrolysers

The approach enables the Company to deliver end-to-end green energy solutions, ranging from equipment supply from original equipment manufacturers (OEMs) to development of build-own-operate (BOO) green energy assets, as showcased by the 10 KTPA green hydrogen plant that is coming up in Panipat, Haryana.

Elara Celestia, Bengaluru, Karnataka

L&T Realty: One of India’s most trusted premium real estate developers, the company has a strong presence in Mumbai (MMR), Bengaluru, Chennai and Delhi (NCR), with a total portfolio of 71 million sq.ft. of development potential across residential, commercial and retail segments.

Construction Equipment and Industrial Products Design & Development:

The erstwhile Construction & Mining Machinery (CMB) business was rebranded as CE & IPDD to reflect a broader strategic focus, incorporating specialised industrial product design and development alongside its traditional mining and construction machinery lines. As India’s trusted technology-driven leader in the infrastructure, industrial and mining equipment sector, CE & IPDD achieved the following:

- The Kansbahal business unit achieved a major international milestone with the successful installation and commissioning of its largest-ever 1,100 TPH Gabbro Aggregate Crushing Plant for the JSW Fujairah project in the UAE

- Secured pilot orders for Automatic Visual Inspection (AVI) systems and Passenger Car & Light Truck Tyre Building Machines from leading Indian tyre manufacturers, validating Rubber Processing Machinery’s (RPM’s) technology leadership

5. New-age businesses

Your Company’s digital businesses exemplify its agility and readiness for the future:

Larsen & Toubro Vyoma: L&T-Cloudfiniti, the data center and cloud services business, was rebranded as Larsen & Toubro Vyoma. The business is looking to expand its bouquet of services through integration of advanced AI capabilities, cloudnative architectures, and low-carbon operations to ensure scalability, security, sovereignty and sustainability. Towards this end, the Company has entered into a partnership with NVIDIA, to develop high-performance, green AI data centers and sovereign AI infrastructure in India.

L&T Semiconductor Technologies: As India’s first fabless semiconductor firm focused on global smart device design across mobility, energy, industrial sectors and data center, LTSCT strengthened its capabilities through the acquisition of the Power Module Design Assets of Fujitsu General Electronics Ltd, Japan. The agreement includes the transfer of the power semiconductor R&D team, design patents, specialised equipment and core intellectual property.

L&T-SuFin: The B2B digital marketplace streamlines procurement, supply chains, logistics and financing for industrial and construction sectors. To provide focus and scale to the e-commerce platform, the business has been carved out into a wholly-owned subsidiary of L&T, namely SuFin Limited, to house the business effective from April 1, 2026

L&T EduTech: The digital platform bridging industry-academia gaps with skilling solutions tailored to future workforce needs, achieved the following:

- Touched a milestone of enrolling 4,00,000 learners, with over 20,000 students enrolled for its premier 4-year Integrated Programme

- A state-of-the-art ‘EV & Emerging Tech Experience Hub’ was unveiled at L&T’s Chennai headquarters to provide learners with practical, hands-on experience using electric powertrains, charging systems and intelligent mobility technologies

- Launched a specialised module on ‘prompt engineering’ for familiarising L&T employees with the use of AI tools

Value unlocking

In order to unlock capital, your Company, during the year, continued its exit from non-core businesses:

• The Company executed a Share Purchase Agreement on April 29, 2026, with Hyderabad Metro Rail Limited, a Government of Telangana Enterprise, for disposal of its entire shareholding in L&T Metro Rail (Hyderabad) Limited, a subsidiary of the Company, for a consideration of J 1,461.47 crore. Upon completion of the transaction, L&T Metro Rail (Hyderabad) Limited would cease to be a subsidiary of the Company

• The Company signed an agreement to divest 100% of its stake in Nabha Power Limited to Torrent Power Limited for a total enterprise value of ₹ 6,889 crore.

Key collaborations

The year under review has been marked by a strong focus on collaboration. Entities within the Group have entered strategic partnerships with leading domestic and international partners to explore opportunities. A few of the notable ones are detailed below:

• L&T, together with Hitachi Energy, secured a portion of the USD 33 billion North Sea power project by TenneT, a Netherlands-based grid operator, where the consortium will work on six high-voltage direct current (HVDC) projects, each with a capacity of 2 GW. L&T will take charge of project management and installation of HVDC transmission systems, while Hitachi Energy will supply the core electrical equipment.
• L&T joined forces with Bharat Electronics Limited to form a consortium to participate in the Indian Air Force’s 5th-generation Advanced Medium Combat Aircraft (AMCA) programme.
• L&T and General Atomics Aeronautical Systems, Inc. announced a strategic partnership to locally manufacture Medium Altitude Long Endurance (MALE) Remotely Piloted Aircraft Systems (RPAS) in India.
• L&T Energy GreenTech signed a binding Joint Development Agreement with Japan’s ITOCHU Corporation to develop and commercialise a 300 KTPA green ammonia project at Kandla, Gujarat, and followed it up by signing a long-term partnership agreement.
• The Company announced a proposed venture under the IndiaAI Mission to build sovereign, scalable GW-scale NVIDIA AI factory infrastructure to reinforce India’s position as a global AI powerhouse.
• LTSCT has entered a three-year agreement with CP PLUS to introduce indigenously designed Vision AI System-on-Chip (SoC) technology to enhance India’s selfreliance in surveillance technology.
• LTTS joined the MIT Media Lab as a multi-year consortium member, enabling cross-disciplinary research into next-gen AI in Mobility, Sustainability, and Tech, targeting breakthroughs in Agentic AI and sustainable infrastructure.
• LTTS forged a strategic alliance with SiMa.ai, a Physical AI pioneer, to co-develop scalable, high-efficiency AI solutions in the areas of mobility, healthcare, industrial automation and robotics using the latter’s hardware and software stack.

Group performance review

For yet another year, your Company charted robust growth, as evident from its financial results. Group Order Inflows for the year stood at a record high of ₹ 4.36 lakh crore, up 22% year-on-year, driven by order wins in Infrastructure and Energy sectors, a large chunk of which were from the Gulf Cooperation Council (GCC) countries. With this, international order inflows surpassed domestic wins for three consecutive years.

Your Company’s Order Book stood at a record high of ₹ 7.40 lakh crore, registering a growth of 28% year-on-year. International orders now constitute 52% of the Order Book. This ensures multi-year revenue visibility.

The L&T Group recorded Revenue of ₹ 2.86 lakh crore during the year, registering a modest growth of 12%.

Your Company maintained a strong execution momentum with technology playing the role of an accelerator.

L&T Group’s Recurring Profit After Tax at ₹ 17,238 crore represents a growth of 18% over the previous year.

A combination of improved profitability and superior working capital management has resulted in improved return ratios over time. In the last few years, the Group has repaid borrowings, and this has led to the Group Net Debt : Equity ratio improving from 0.6:1 in 2024-25 to 0.35:1 in 2025-26. The Group’s consolidated debt largely comprises borrowings at L&T Finance Limited, an NBFC subsidiary.

As always, shareholder value creation remains a core objective for the Group. The strategic divestment of non-core assets, realisation of cost efficiencies, prudent capital allocation and nurturing of new-age digital businesses are directed towards this

objective. Supported by a diversified business portfolio, wide geographical presence, strong balance sheet, proven execution capabilities and a dedicated and motivated workforce, the Company is well positioned to sustain and enhance long term value creation.

As a guiding business philosophy, the Company continues to prioritise strong cash generation and ensure regular returns to shareholders.

I am pleased to inform you that the Board of Directors of the Company has recommended a final dividend of ₹ 38/- per share for FY 2025-26.

Tech-cellence - the way forward

Leveraging technology to excel in every aspect of its operations, your Company has repositioned itself as a tech-driven solutions provider. While engineering remains its core strength, digitalisation has amplified these capabilities through improvements in execution speed, safety, accuracy, cost efficiency and environmental performance.

Today, by utilising a vast array of technologies across its various verticals, including AI, ML, VR/AR, Cloud, Big Data & Analytics, Drones, GPS, RFID & QR Codes, LiDAR, BIM, IoT, 3D printing, your Company has made digital governance a reality. Adoption of frontier technologies like advanced sensors, embedded software and robotics is in progress. Your Company has digitally connected over 17,000 assets across its global projects and manufacturing bases to a central IoT platform. Leveraging the vast amounts of data generated daily by this extensive portfolio of assets, your Company has developed Small Language Models (SLMs) to be used for L&T-specific situations for optimising asset utilisation and resource planning, ensuring maximum efficiency. Your Company has already developed more than 100 algorithms of which 34 are fully functional and the balance are in test-phase.

Your Company is deploying GenAI across the entire project life-cycle – from tendering to contract management, including the identification of contractual risks, to design, execution and operations and maintenance – leveraging it as a decision support tool within well defined governance frameworks and guardrails. It is also extensively applied for routine office functions across disciplines. The use of technology also continues to shape a growth path that is aligned with the Company’s sustainability goals.

ESG commitment

Your Company, as a responsible corporate citizen, has embedded ESG (environment, social and governance) principles into its core business strategy.

(a) Environment

As part of its commitment towards the preservation of our planet, your Company has undertaken efforts on multiple fronts.

• To achieve Water Neutrality by 2035, initiatives have been undertaken to implement water conservation measures, reduce water consumption intensity and increase water recycling across its offices, campuses, factories and project sites
• To achieve Carbon Neutrality by 2040, efforts are on to lower greenhouse gas (GHG) emissions through energy efficiency, enhance carbon capture, increase renewable energy adoption, replace older machinery with energy-efficient alternatives and reduce diesel reliance in its equipment. Presently, 19% electricity consumption of the Group comes from renewable sources
• To enhance biodiversity, your Company has planted more than 1 million saplings during the year

Projects that help in lowering carbon emissions, improving water availability, recycling and reuse, scaling up energy efficiency, reducing air pollution and enhancing resource conservation, are collectively termed as ‘Green Business’ in your Company. For 2025-26, Green Business stood at ₹ 787 billion, which is 51% of the Company’s standalone revenues. As building of climate-friendly infrastructure is emerging as a global trend, this figure will only keep growing, thereby opening up massive possibilities for your Company globally.

(b) Social

Deeply committed to inclusive growth and building long-term, trust-based relationships with all stakeholders, your Company undertakes focused CSR interventions pertaining to education, healthcare, water and sanitation, and skill development to benefit the communities in and around the areas where it operates. From the multiple programmes it undertakes, more than 1.9 million people were positively impacted during the year.

• Project Jyoti (STEM education) reached 341 schools covering 51,741 students who have demonstrated improved conceptual clarity and better performance in Mathematics and Science
• Project Nayi Disha positively impacted more than 26,000 lives – including students, teachers, women and families – enhancing access to education, improving health outcomes and building resilient, self-reliant communities across Jharkhand, Bihar and Odisha
• Vocational skills imparted to more than 13,000 trainees at L&T’s 10 operational Construction Skills Training Institutes (CSTIs)
• Project Unnati (water security) has reached over 30,000 households in water-distressed regions of Maharashtra, Rajasthan and Tamil Nadu spanning an area of approximately 46,035 hectares, and the interventions resulted in an average increase of 9.95 meters in the water table in these regions

(c) Governance

Your Company has put in place a comprehensive corporate governance structure designed to ensure transparency, accountability and stakeholder value, often exceeding statutory requirements.

L&T’s multi-level governance architecture, from the Board to site level, ensures alignment among strategic intent, operational execution and accountability. Safety, one of the key focus areas, is now a part of annual performance assessment of businesses and balances incentives with penalties to drive sustained improvement. POSH policy has been enhanced with the implementation of a new system for managing the grievances. Central to its philosophy of sound governance and trust-building with stakeholders, the Company ensures quality, consistency and timeliness of its disclosures, both financial and non-financial, providing a comprehensive view of its strategies, targets and performance. Going beyond compliance, the Company emphasises openness, accountability and ethical decision-making through strong internal controls, advanced technologies and alignment with evolving expectations, which strengthen investor confidence thus supporting responsible growth.

Access to global capital is getting increasingly linked to an organisation’s ESG footprint. Therefore, staying focused on the ESG goals is of paramount importance. Each vertical, in its annual plan, sets ESG goals and the performance gets documented meticulously, which ultimately gets reflected in the Integrated Annual Report. Your Company is also on a mission to sensitise its vendors and suppliers on the importance and advantages of ESG.

Underscoring this commitment to augment the sustainable business portfolio, your Company issued India’s first listed sustainability-linked bond, for ₹ 500 crore, under the Securities and Exchange Board of India’s (SEBI) ESG Bond Framework and followed it up with the securing of a Sustainability-Linked Trade Facility (SLTF) worth USD 700 million with Standard Chartered.

The human edge

Just as the Graphics Processing Units (GPUs) in semiconductors act as the foundational hardware for the AI revolution which allows technology to encroach into areas hitherto considered preserved for the human brain, your Company believes in the power of

GPU – ‘genius potential unleashed’ – of its own people towards maintaining a stellar track record of top-quality and on-time delivery of engineering solutions. A firm believer in continuous learning and training, your Company provides ample opportunities to its employees to upskill, so that in-house talent is ready to take on new roles and opportunities that open in both the traditional and the new-age businesses. In this journey of knowledge-driven growth, employees clocked nearly 40 lakh learning hours of training, in sessions conducted both physically and virtually.

Identifying potential leaders who can take the Group to greater heights is an ongoing process. The fine-tuning of the leadership development programme is in progress to fast-track the careers of potential leaders.

Committed to create an inclusive work environment, your Company has introduced several career-assisting schemes for women and a number of women-friendly initiatives. These initiatives have significantly advanced our Lakshya 2026 gender diversity goal, with women employees now constituting close to 10% of the total workforce. The growing participation of women across both engineering and non-engineering roles is contributing to a more diverse and effective talent base.

A culture of recognition and celebration continues to fuel high performance, foster healthy competition, and reinforces mutual respect among teams. This employeecentric approach has once again earned the Company the prestigious ‘Great Place to Work’ (GPTW) certification – for the third consecutive year, reaffirming L&T’s position as an employer of choice.

Navigating the future together

The global environment remains uncertain, and the near term may continue to see phases of volatility. Your Company, however, has navigated multiple cycles of disruption in recent decades. On each occasion, it has demonstrated resilience and emerged stronger, supported by the enduring trust and partnership of all its stakeholders — customers, vendor partners, investors, employees, as well as the government. This time too, your Company remains guided by its enduring mantra of ‘Can do, Will do, Will get it done’ as it continues to move forward with confidence.

As the Company aims for the Lakshya 2031 targets, I would like to take this opportunity to express my sincere gratitude to all our stakeholders for the support extended throughout this journey. I also extend my appreciation to my fellow Board members for their valuable guidance and counsel in enabling the Company to embark on the next phase of its growth. A special word of thanks to our shareholders – your enduring trust remains our greatest strength as we continue to pursue excellence in all that we do. Your Company looks forward to your continued support as it strives to set new benchmarks of tech-cellence while delivering sustained growth.

Jai Hind!