L&T bags Rs 10,000 cr Riyadh Metro order; shares trade green ahead of Q3 results
Larsen & Toubro announced on January 28, 2026, that its Heavy Civil Infrastructure business has secured a contract valued between Rs 5,000-10,000 crore from the Royal Commission for Riyadh City for works pertaining to the extension of the Red Line of the Riyadh Metro Network.
The order forms part of a $2.75 billion ultra-mega project awarded to a consortium led by Webuild S.p.A, which holds a 30.1% share worth approximately $830 million. The consortium also includes L&T, Saudi Arabia's Nesma & Partners Contracting, France's Alstom, and Spain's IDOM. L&T has not disclosed its specific share in the consortium.
Project Details
The contract involves the design and turnkey construction of an 8.4 km driverless metro line, comprising 7.1 km of deep underground tunnels and 1.3 km of elevated tracks. The scope includes five new stations, three of which will be underground, along with all signalling systems. A Tunnel Boring Machine will be used for the excavation of the underground section.
The extension will connect King Saud University to the Diriyah Gate Development project, with two stations at the university campus serving the medical city and health colleges, and three stations in Diriyah. One station is planned as a future interchange with Line 7. Construction is expected to take approximately six years.
Expanding Transit Network
The contract comes as Riyadh's metro system experiences strong ridership growth. According to the Royal Commission for Riyadh City, the metro has served over 173 million passengers since its inauguration in November 2024. Eng. Ibrahim Al-Sultan, CEO of the Royal Commission, said the Red Line extension "responds to growing demand among residents and visitors for public transport" and will enhance the city's sustainable urban transport ecosystem.
The Riyadh Metro, which began full operations across all six lines in January 2025, recorded 100 million passengers within its first nine months. The Blue Line leads with 46.5 million riders, followed by the Red Line with 17 million passengers.
Strategic Win Ahead of Earnings
The announcement came on the same day L&T was scheduled to report its Q3 FY26 earnings. Analysts had projected revenue growth of 15-17% year-on-year to approximately Rs 73,500-75,750 crore, with net profit expected to rise 26-29% to between Rs 4,250 crore and Rs 4,370 crore. L&T shares traded higher following the contract announcement.
L&T, a $30 billion Indian multinational engaged in EPC projects and hi-tech manufacturing, described the contract as "a testament to the trust customers place in the company" for constructing reliable mass-transit systems globally.