L&T consolidates realty biz; CMD Subrahmanyan calls it the first step towards creating a real estate powerhouse

Engineering and construction major Larsen & Toubro (L&T) has taken a major step to consolidate its real estate operations by transferring its realty business undertaking (Realty BU) to its wholly owned subsidiary, L&T Realty. The transfer will take place through a slump sale under a scheme of arrangement, subject to regulatory approvals, L&T said in an exchange filing last evening.

The move, approved by the company’s board, marks the first step towards creating a unified real estate powerhouse. “The proposed transfer is the first step in creating a consolidated powerhouse that can redefine the future of urban development in India,” said S. N. Subrahmanyan, Chairman and Managing Director, L&T.

By bringing all operations under one umbrella, the company aims to create a unified, future-ready real estate enterprise with greater scale, agility, and financial strength—better positioned to tap into India’s growing property market.

According to Subrahmanyan, L&T Realty needs to perform independently. “It has to continuously expand its project pipeline through proactive land bank growth and joint developments. This requires periodic capital infusion, and therefore, it is essential to bring all our real estate operations under a singular corporate structure and bolster L&T Realty’s position as a unified brand for real estate.”

The CMD said that the integration of the Realty BU will help L&T Realty emerge as India’s most admired and sought-after real estate brand in the next five years. The strategic priorities include deepening presence across major metros, maintaining its premium and luxury positioning, undertaking disciplined land acquisitions, expanding joint development partnerships, and navigating market cycles with institutional discipline.

Here’s all you need to know about L&T Realty

L&T set up its Realty BU in 2007 to develop its own land parcels into high-quality residential and commercial projects. Four years later, in 2011, it created L&T Realty as a wholly owned subsidiary, with a mandate to develop both L&T-owned land and joint ventures with leading partners.

Over the years, the company has delivered premium residential, commercial, and mixed-use projects across India’s major urban hubs, including Mumbai, Navi Mumbai, Bengaluru, the NCR region, Chennai, and Hyderabad. One of its most notable projects is Seawoods, India’s first landmark Transit-Oriented Development (TOD), which became a benchmark for integrated urban design.

The company has since moved beyond developing L&T-owned land and now actively pursues selective land acquisitions and high-profile joint developments in key micro-markets. Its portfolio focusses on large, premium projects aligned with L&T’s commitment to excellence.

Today, L&T Realty is counted among India’s leading developers, with a development potential of 65 million sq. ft, spanning upscale residential communities, Grade-A office spaces, and high-street retail projects.

For the half-year ended September 30, 2025, the standalone revenue from operations for the Realty undertaking was ₹640.57 crore, representing 0.93% of L&T's total standalone revenue for the period.

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