L&T plans to exit road, power concessions, incubate digital business

Company aims to touch revenue of Rs 2.7-3 trillion, achieve order inflow of Rs 3.4 trillion and return on equity of over 18 per cent by FY26

Engineering giant Larsen & Toubro (L&T) is looking to divest its exposure to road and power concessions and incubate digital and e-commerce businesses as part of its new five-year plan ending 2025-26 (FY26). The base year for the plan is 2020-21 (FY21).

The blueprint, called Lakshya 2026, is intended to help the company exit sub-scale businesses, concentrate on high-technology (tech) manufacturing, construction and green energy projects, and increase its share from information technology (IT) and digital services. The lending operations of the financial services business, meanwhile, will be reorganised, with focus on retail lending.

Divestment will include the sale of