Larsen & Toubro (L&T) has won significant contracts for the Dhaka Mass Rapid Transit Development Project (Line 1) in Bangladesh, valued at up to ₹10,000 crore. This project will be Bangladesh's first underground metro system, spanning approximately 31 kilometers with 19 stations. The contracts cover key systems packages including track works, electrical systems, signalling, telecommunications, and platform screen doors.
- L&T secured Contract Package CP09 for track works and electrical systems.
- Contract Package CP10 covers signalling, telecommunications, and platform screen doors.
- The Dhaka Metro Line 1 project is funded by the Japan International Cooperation Agency (JICA).
- The metro line includes two routes: Airport Route and Purbachal Route.
- L&T is collaborating with Japanese partner Sumitomo Corporation on CP09.
- L&T’s stock has seen a slight decline over recent months but rose ahead of Q2 earnings.
What does the Dhaka Metro project involve?
The Dhaka Metro Line 1 project aims to provide a modern mass transit system in Bangladesh’s capital. It will cover around 31 kilometers with 19 stations and a depot at Pitalganj. The project includes two main routes: the Airport Route from Kamalapur to the Airport and the Purbachal Route from Natun Bazar to Purbachal Terminal.
This will be the first underground metro system in Bangladesh, designed to ease traffic congestion and improve urban transportation.
What are L&T’s responsibilities in the project?
L&T has secured two major contract packages. Under Contract Package CP09, L&T and its Japanese partner Sumitomo Corporation will handle the design, procurement, installation, testing, and commissioning of track works, power supply and distribution systems, traction substations, overhead catenary systems, and related electrical facilities along the metro corridor.
Under Contract Package CP10, L&T will execute the signalling, telecommunication systems, and platform screen doors for the entire metro network.
How does L&T view this project?
Ramkumar S, Senior Executive Vice President and Head of Transportation Infrastructure at L&T, stated that the repeat orders from Dhaka Mass Transit Company Limited (DMTCL) highlight L&T’s expertise in delivering large-scale urban transit projects globally. He emphasized L&T’s strong track record with the Dhaka Metro Line 6 and the ongoing Jakarta Metro project, showcasing their ability to integrate complex systems efficiently.
What is the financial outlook for L&T?
L&T’s consolidated revenue is expected to increase by about 10% year-over-year, reaching between ₹74,810 crore and ₹75,110 crore. This growth is driven by steady execution of its order book across various segments. In the previous quarter, L&T reported consolidated revenue of approximately ₹67,942 crore.
However, profitability and margins may face pressure due to geopolitical challenges affecting project execution, especially in West Asia. Net profit is expected to remain flat year-on-year, with L&T reporting ₹3,926 crore in net profit for Q2 FY26.
How has L&T’s stock performed recently?
On October 27, 2026, L&T shares rose by 1% to an intraday high of ₹3,713.50 and were trading at ₹3,693.10 on the National Stock Exchange. Despite this, the stock has declined 2% over the past month and 9% over six months. Since the start of the year, shares have slipped 11%.
The stock reached a 52-week high of ₹4,440 on February 24, 2026, and a low of ₹3,288.10 on March 23, 2025. As of October 27, 2026, L&T’s market capitalization stood at ₹5.08 lakh crore.
Frequently Asked Questions
Q: What is the significance of the Dhaka Metro Line 1 project?
A: It is Bangladesh’s first underground metro system, designed to improve urban transit and reduce traffic congestion in Dhaka.
Q: Who is funding the Dhaka Metro project?
A: The project is funded by the Japan International Cooperation Agency (JICA).
Q: What are the main contract packages L&T has secured?
A: L&T secured Contract Package CP09 for track works and electrical systems, and Contract Package CP10 for signalling, telecommunications, and platform screen doors.
Q: How is L&T’s stock performing ahead of its Q2 earnings?
A: The stock has shown a slight increase recently but has declined over the past six months and year to date.
