Larsen & Toubro Limited (L&T) has been assigned a ‘Baa1’ long-term issuer rating with a Stable outlook by Moody’s Ratings, marking a significant recognition of the company’s financial strength, disciplined capital management and consistent operational performance. The investment-grade rating places L&T two notches above India’s sovereign rating of ‘Baa3’, placing the engineering and technology major among a select group of Indian companies with a higher standalone credit assessment than the country’s sovereign rating.
The Moody’s rating reflects confidence in L&T’s ability to meet its long-term financial obligations while maintaining a low credit risk profile. It also highlights the company’s diversified business portfolio, prudent financial practices and sustained execution capabilities across domestic and international markets.
According to Moody’s, the Stable outlook is supported by expectations that L&T and its key international subsidiaries will continue to maintain disciplined financial policies, healthy operating margins and moderate leverage. The agency also expects the company’s strong order pipeline, particularly in high-value engineering services and large engineering, procurement and construction (EPC) projects in West Asia, to support earnings and cash flow over the medium term.
The rating assessment recognises several key strengths that underpin L&T’s credit profile. These include its diversified business model, established leadership across multiple infrastructure and engineering segments, strong revenue visibility backed by a robust order book, high standards of corporate governance and favourable long-term growth prospects in India’s infrastructure sector as well as overseas markets.
Moody’s also acknowledged the company’s ability to navigate industry cycles through disciplined execution and balanced capital allocation, reinforcing its reputation as one of India’s most resilient engineering enterprises. In addition to the parent company, Moody’s has assigned the same ‘Baa1’ rating to L&T Hydrocarbon Saudi Company, a wholly owned subsidiary. The rating reflects the subsidiary’s close operational integration with Larsen & Toubro and its strategic role in the company’s expanding presence across West Asia, where demand for large-scale energy and infrastructure projects continues to remain strong.
The latest rating is expected to further strengthen investor confidence in Larsen & Toubro’s long-term growth strategy and financial stability. It also enhances the company’s standing in global capital markets by reinforcing its credibility with lenders, investors and business partners.
The Moody’s assessment underscores L&T’s position as one of India’s leading multinational engineering and infrastructure companies, supported by a resilient balance sheet, strong execution capabilities and a diversified portfolio that continues to drive sustainable growth across global markets.
