Archive · 29 Jan 2026
L&T Wins Rs 5,000–10,000 Crore Riyadh Metro Extension Contract
Larsen & Toubro (L&T), a big Indian company, has won a huge contract to help build an extension of the Riyadh Metro in Saudi Arabia.
The project is worth between Rs 5,000 and Rs 10,000 crore.
L&T will work with other companies to build a new 8.4 km-long part of the metro, which will have both elevated and underground sections.
They will also build five new metro stations.
This is part of a bigger project to make the metro system in Riyadh better.
L&T's stock price went up a little bit recently, which shows that people are happy about this new project.
However, the company's net profit dropped by more than 4% in the third quarter compared to the same period last year, while its revenue increased by more than 10%.
L&T has also increased its core margins by 40 basis points from the same quarter last year to 8.1%, and the company has maintained its guidance for this parameter at 8.5% for the full year.
Larsen & Toubro (L&T) has secured a contract worth Rs 5,000–10,000 crore for the extension of the Riyadh Metro's Red Line.
The project is part of an ultra-mega project won by a global consortium including L&T, Webuild S.p.A, Nesma & Partners Contracting, Alstom, and IDOM.
L&T will design and construct an 8.4 km-long metro corridor with both elevated and underground sections.
The scope of work includes the construction of five metro stations along the Red Line extension.
L&T's share price surged 1.04% in intra-day trade on Wednesday, reflecting positive market sentiment.
- Who
- Larsen & Toubro (L&T) and a global consortium including Webuild S.p.A, Nesma & Partners Contracting, Alstom, and IDOM
- What
- Secured a contract for the extension of the Riyadh Metro's Red Line
- When
- The specific date of the contract award is not mentioned, but L&T announced its Q3FY26 results on January 28, 2026
- Where
- Riyadh, Saudi Arabia
- Why
- To extend the Red Line of the Riyadh Metro network, a key corridor of the city’s mass rapid transit system
Positive Market Sentiment
Profit Decline Concerns
Contract Win
Positive Market Sentiment
The contract win is seen as a positive development, reflecting L&T's strong capabilities in infrastructure projects.
Profit Decline Concerns
Despite the contract win, the decline in net profit raises concerns about the company's financial health.
- Contract Value
- Rs 5,000–10,000 crore
- Project Location
- Riyadh, Saudi Arabia
- Project Scope
- 8.4 km-long metro corridor with elevated and underground sections
- Metro Stations
- 5
- Consortium Members
- Webuild S.p.A, L&T, Nesma & Partners Contracting, Alstom, IDOM
- Company
- Larsen & Toubro (L&T)
- Contractor
- Royal Commission of Riyadh City
- Share Price Change
- 1.04% surge in intra-day trade on Wednesday
- Q3 Net Profit
- ₹3,215 crore
- Q3 Revenue
- ₹71,449 crore
- YoY Profit Change
- -4%
- YoY Revenue Change
- +10%
- Core Margins
- 8.1%
- Core Margin Guidance
- 8.5% for the full year
Sources
L&T wins Rs 5,000–10,000 crore Riyadh Metro extension contract
Saudi Arabia: L&T to build 8.4 km Riyadh metro in ₹5,000–10,000 cr deal
L&T Q3 results: Net profit drops 4% YoY to ₹3,215 crore; revenue rises 10% — Details here
L&T profit slips 4.3% as exceptional labour charge offsets record order inflows
L&T order inflows in Q3 surge to record ₹1.36 trillion, top expectations
L&T net declines 4% on impact of labour code
Highest-ever quarterly sales drive TVS Motor net up 52%
L&T shares in focus after management says will beat order inflow guidance, but concerns remain
Hyderabad metro ridership drops 9% after fare hike; L&T plans phase-I exit by FY26
L&T shares jump 4% post Q3 results; brokerage sees 20% more upside
L&T surges 3%: Brokerages see upside potential of up to 23% – Here’s why
