Larsen & Toubro lands major Brigade Group contract to shape Hyderabad and Chennai skylines

Larsen & Toubro, India’s engineering and construction powerhouse, has secured a large-scale contract from Brigade Group to develop landmark residential and commercial towers in Hyderabad and Chennai. This deal, classified as a “large” project under L&T’s internal order categorization, represents one of the most significant private-sector residential construction contracts the company has ever won.

The project strengthens L&T’s role in shaping India’s urban infrastructure, reinforcing its reputation for high-rise, mixed-use developments. As India’s real estate sector experiences sustained growth, the deal underscores L&T’s strategic expansion in premium residential and commercial segments, which are witnessing heightened demand in major metropolitan regions.

What Are the Major Projects Under This Deal?

The contract includes four key developments spread across Hyderabad’s Neopolis area and prime locations in Chennai. Each project is designed to elevate the luxury living and commercial space landscape in these cities.

One of the most ambitious undertakings is Brigade Gateway Residences at Neopolis, Kokapet, Hyderabad, which will feature two high-rise luxury towers with a 5B+G+57-floor configuration. This project is set to be among the tallest residential towers in Hyderabad, further enhancing Neopolis as an emerging real estate hub.

Complementing the residential project is the Brigade World Trade Centre, a 200-metre-tall commercial skyscraper in the same locality. Designed with 50 floors and five basement levels, this development will host premium office spaces, high-end retail outlets, and the five-star Brigade Neopolis Hotel. Upon completion, it will stand as the tallest mixed-use development in Hyderabad, adding to the city’s growing portfolio of modern commercial landmarks.

In Chennai, the Brigade Altius project will redefine luxury living with three signature towers, rising to 39 residential floors above six parking levels. This development is expected to set new benchmarks for high-end residential projects in Chennai, offering a mix of premium apartments tailored for an elite clientele.

Additionally, L&T will construct Brigade Morgan Heights, a ten-tower luxury residential complex in Chennai. The towers, with heights ranging between 11 to 21 floors, will be built above four parking levels. This project aligns with Chennai’s ongoing transformation into a high-rise residential destination, reflecting the city’s demand for vertical expansion in premium housing.

Why Is This Project a Strategic Win for L&T?

Larsen & Toubro’s latest contract win underscores its engineering excellence and leadership in high-rise construction. With India’s rapid urbanization and increasing demand for integrated, high-density developments, L&T remains a preferred choice for large-scale, design-and-build projects.

The company’s Buildings & Factories vertical has played a pivotal role in constructing some of India’s most iconic skyscrapers, commercial hubs, and infrastructure megaprojects. Its experience in managing complex, high-rise developments with stringent timelines has positioned it as a key player in India’s evolving real estate sector.

With Hyderabad’s financial district and Chennai’s luxury housing market witnessing exponential growth, this contract provides long-term revenue visibility for L&T, reinforcing its strong order book and future earnings potential.

How Has L&T’s Stock Responded to This Announcement?

L&T’s stock has reacted positively to this major contract win, reflecting investor confidence in the company’s expanding order pipeline. As of March 21, 2025, L&T’s share price closed at ₹3,417.35, marking a 2.03% increase from the previous trading session. This performance outpaced the BSE SENSEX, which rose by 0.73% on the same day.

Despite the recent uptick, L&T’s stock remains 13.77% below its 52-week high of ₹3,963.00, suggesting further upside potential. Analysts tracking L&T maintain an optimistic outlook, citing the company’s diversified order book, strong execution capabilities, and consistent revenue growth.

In the past week alone, L&T’s stock has shown steady upward momentum, with multiple sessions of positive trading activity. Analysts project a 12-month price target of ₹4,299, indicating a potential 26% upside from current levels. Additionally, L&T’s earnings are forecasted to grow at 23.4% per year, supported by an anticipated 13.3% annual revenue increase.

With a return on equity (ROE) expected to reach 18.6% over the next three years, the stock remains a favored pick among institutional investors and market analysts. Out of 29 analysts covering the stock, 13 have issued a strong buy rating, while another 13 recommend a buy, signaling broad consensus on L&T’s growth potential.

What Does This Mean for India’s Real Estate and Construction Industry?

The deal highlights a broader trend in India’s real estate sector, where developers are increasingly investing in luxury and mixed-use projects to cater to rising demand. Cities like Hyderabad and Chennai are experiencing a surge in high-rise developments, driven by limited land availability and evolving buyer preferences.

Hyderabad’s Neopolis financial district has emerged as a hotspot for premium residential and commercial projects, attracting major developers looking to capitalize on the city’s booming IT and business ecosystem. Chennai, traditionally known for low-density housing, is rapidly embracing vertical growth, with developers keen on delivering world-class high-rise residential spaces.

L&T’s involvement in these large-scale projects signals a wider transformation in India’s construction landscape, with increasing emphasis on urban infrastructure, modern architecture, and sustainable real estate solutions. As the company continues to expand its footprint in high-rise construction, its expertise in engineering innovation and mega-project execution will remain a crucial driver of its growth strategy.

With its latest contract win, L&T not only reinforces its market leadership in India’s premium construction sector but also sets the stage for future expansion into high-value urban developments. As real estate investment flows into India’s top metropolitan regions, the company is well-positioned to capitalize on emerging opportunities in high-rise, mixed-use, and luxury housing projects.