L&T Secures Global Vote of Confidence—Fitch Affirms ‘BBB+’ Rating with Stable Outlook

Fitch Ratings has affirmed Larsen & Toubro Ltd (L&T) at a ‘BBB+’ longterm issuer rating, with a Stable Outlook, marking a significant endorsement of the conglomerate’s financial strength, global diversification, and operational resilience. This is L&T’s first international rating from Fitch, placing it two notches above India’s sovereign rating.

 

Strong Market Position:

L&T’s leadership in engineering, construction, hydrocarbons, and hightech manufacturing—alongside its IT arms LTIMindtree and L&T Technology Services—underpins its robust revenue base and margin stability.

 

Global Diversification:

Nearly 50% of EBITDA is generated overseas, with a strong presence in Gulf Cooperation Council (GCC) countries and developed markets, reducing reliance on domestic cycles.

 

Solid Financials:

Risk Management Edge:

L&T’s prudent contract structuring—60% of E&C contracts are costplus—and commodity hedging practices have helped avoid major project losses for over a decade.

 

IT Cushion:

The IT segment is projected to contribute onethird of EBITDA, offering a buffer against E&C sector volatility.

 

Fitch’s affirmation reflects confidence in L&T’s ability to sustain growth, manage leverage, and navigate global uncertainties with strategic clarity.

 

Sources: Fitch Ratings, Business Standard, Larsen & Toubro Press Release