Private capex reviving strongly and Middle-East momentum intact: L&T CFO R Shankar Raman
By Saurav Mukherjee, Mumbai, June 9
Private sector capital expenditure in India is undergoing a structural revival, complementing sustained public spending on infrastructure, Larsen & Toubro Whole-Time Director and Chief Financial Officer R. Shankar Raman said on Tuesday.
Speaking with ANI on the sidelines of ICICI Securities' India Investors Conference 2026 in Mumbai, Raman highlighted that the engineering and construction major is witnessing a distinct shift in investment patterns, backed by robust order pipelines across domestic and international markets.
"We are seeing a major transition where private capex is no longer just a structural hope but a visible reality on the ground," Raman said while analyzing the domestic investment environment.
He noted that while central and state governments continue to drive the country's infrastructure momentum, corporate India has significantly stepped up capacity expansion in sectors like thermal power, green energy storage, data centers, and semiconductor fabrication.
This balanced dual engine of public and private deployment is providing strong visibility for industrial execution over the medium term.
Detailing the infrastructure major's growth trajectory and estimates, Raman expressed confidence in L&T's capacity to build on its record-high consolidated order book, which crossed the Rs 7.4 trillion milestone at the close of the financial year.
The company is tracking a massive prospects pipeline for project execution, split nearly equally between domestic opportunities and international markets. He emphasized that the execution capabilities and working capital optimizations achieved recently will help sustain a steady revenue momentum, keeping the corporate growth targets securely on track.
Addressing concerns regarding infrastructure development and the execution of key projects amidst the ongoing West Asia war in the Middle East, the CFO downplayed immediate structural disruptions.
Given that the Middle East accounts for a substantial 78 per cent of L&T's international order book, primarily concentrated in large-scale energy and utility infrastructure, global geopolitical tensions remain closely monitored.
"Our project execution in the Middle East has remained largely resilient, and our partners continue to push ahead with their long-term infrastructure transitions despite regional geopolitical friction," Raman stated.
Sharing his outlook on the broader Indian economic environment, the veteran financial executive remained highly optimistic about India's macroeconomic fundamentals.
He indicated that headline inflation dynamics remain manageable within comfortable thresholds, despite minor pressures from volatile global commodity markets and elevated logistics costs.
Raman concluded that India's domestic consumption resilience, coupled with a well-capitalized banking system and accelerating industrial activity, positions the country favorably against global economic headwinds, cementing its status as a primary growth engine in the region.
— ANI
Reader Comments
Finally some concrete news on private capex revival! L&T's visibility in Middle East projects is reassuring, especially with the geopolitical tensions there. But I wish our domestic manufacturing ecosystem got more attention — we still import too much equipment for even these big projects. Hope Make in India benefits directly.
As someone who tracks Indian markets from abroad, this is a very positive development. The dual engine of government and private capex is exactly what India needs. However, I wonder about execution risks in the Middle East given the ongoing conflict. L&T's confidence is good, but regional volatility could still impact timelines.
This is the kind of news we need more of in India. Private sector finally stepping up with thermal, green energy, data centers, and semiconductors — these are the future growth drivers. But I'm a bit skeptical about the inflation outlook. Global commodity prices are still volatile and could eat into margins. Let's see how this plays out in the next 2 quarters.
Solid analysis from L&T's CFO. The Middle East exposure (78% of international book) is both a strength and a risk — resilience so far is commendable, but one should not underestimate regional shocks. India's macroeconomic story is compelling though: low inflation, strong banking system, and domestic consumption. This is a good time to be bullish on Indian infrastructure.
Very encouraging to hear that private capex is finally matching government spending. For too long, India's growth relied solely on public infrastructure. The fact that L&T is seeing strong orders in thermal power AND green energy shows a balanced approach. But I hope the benefits of
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