# L&T's Shankar Raman on steady growth amid volatility > L&T's president says ₹8.5 trillion orderbook and risk diversification keep financial performance steady despite global tensions. - Title: L&T's Shankar Raman on steady growth amid volatility · mint - Summary: L&T's president says ₹8.5 trillion orderbook and risk diversification keep financial performance steady despite global tensions. L&T's ₹8.5 trillion… - Keywords: l&t, shankar raman, orderbook, risk diversification, margins, revenue growth, lakshya 31, offshore wind, tashkent airport, working capital, news, india - Source: mint — https://livemint.com/companies/scale-wards-off-volatility-keeps-us-steady-l-ts-shankar-raman-11793192975526.html - Author: Nehal Chaliawala - Published: 2026-10-28T14:02:35+00:00 - Read time: 1 min - Topics: l&t, shankar raman, orderbook, risk diversification, margins, revenue growth, lakshya 31, offshore wind, tashkent airport, working capital, news, india ## L&T's orderbook size L&T's ₹8.5 trillion orderbook helps absorb external shocks and deliver steady financial performance. > the scale and diversity of larsen & toubros ₹ 8.5 trillion orderbook helps it absorb the impact of external events and deliver steady financial performance ## Risk diversification strategy L&T spreads risk across multiple markets and sectors to maintain stability during global tensions. > the company is engaged in diverse businesses in multiple markets, allowing it to spread risk and be present wherever an investment cycle is active ## Volatility management L&T avoids dramatic actions to prevent significant financial volatility despite external pressures. > so, the wheel is so large with ₹ 8.5 trillion of order book; we have sort of come to a zone where there are several compensating factors at play ## Margin impact L&T's margins narrowed from 10-12% to 7-8% by taking lower risk in project selection. > the company’s margins have narrowed from around 10, 12% to 7, 8% as it takes less risk ## Third market target L&T plans to develop Europe and Central Asia as its third major market beyond India and Middle East. > the top candidates for the company’s third key market are europe and central asia ## Europe expansion L&T secured ₹50,000 crore offshore wind project in europe through subcontracting. > l&t last year bagged its largest-ever order worth nearly ₹ 50,000 crore as a subcontractor for a large offshore wind energy project off the shore of the netherlands and germany ## Central Asia projects L&T builds Tashkent airport, solar projects, and data centres in Central Asia. > in central asia, the company is building the new tashkent international airport, a solar project, and a data centre, among other projects ## Working capital ratio L&T reduced working capital to 1.7% of revenue in Q3 2026 through cash flow management. > the company reported a multi-decadal low working capital ratio of 1.7% to its revenue during the quarter ended 30 september 2026 ## Risk avoidance policy L&T avoids high-risk projects due to technology, social unrest, supply chains, or conflicts. > it does not bid for projects where it feels the risk-return ratios were high due to numerous reasons like technology, social unrest, supply chain, war, etc ## Future growth plan L&T aims for $15 trillion orderbook by 2031 with 20% business from each region. > if the company manages to maintain its current growth rate in getting new business, its orderbook could reach $15 trillion by 2031 ## Margin trade-off L&T prioritizes stability over high margins by avoiding high-risk projects. > the direct result of it has been that the company’s margins have narrowed from being around 10-12% to 7-8% ## Orderbook distribution L&T's orderbook will be 20% India, 20% Middle East, 20% Europe/CA by 2031. > by then, about two-fifths of l&t’s business could come from india, two-fifths from the middle east, and a fifth from the rest of the world ## Key takeaway L&T's ₹8.5 trillion orderbook and global business spread help absorb external shocks, maintaining steady earnings while narrowing margins from 10-12% to 7-8%.