CHENNAI: Larsen & Toubro (L&T) shares recovered from early losses and traded off the day’s low after the company announced a strategic partnership with Bharat Electronics Limited (BEL) for the Indian Air Force’s Advanced Medium Combat Aircraft (AMCA) programme.
The stock opened firm and rose nearly 1% to an intraday high of around ₹3,688 but later slipped as broader market pressure emerged. By 12:30 pm, it was quoted above its session low of about ₹3,636, compared with the previous close of ₹3,658. The stock recovered to Rs 3,698 at 12.43 PM. BEL, however, was under selling pressure and traded nearly 2% lower.
Under the partnership, L&T and BEL will form a consortium to respond to the Expression of Interest issued by the Aeronautical Development Agency (ADA) for the AMCA project. L&T will bring its expertise in aerospace structures and systems integration, while BEL will contribute its capabilities in avionics and defence electronics. Both companies have earlier collaborated on the Light Combat Aircraft (LCA) programme.
The AMCA is India’s ambitious fifth-generation twin-engine stealth fighter jet being developed indigenously by ADA and DRDO. The project is central to the government’s push for defence self-reliance under the “Make in India” initiative.
According to sector analysts, the partnership could give L&T access to long-term defence revenues and boost its presence in high-technology manufacturing. Success in the AMCA programme would strengthen its positioning beyond traditional infrastructure and EPC projects.
At the same time, investors remain cautious. The AMCA project is still at the bidding stage, and large defence programmes often face technical challenges, delays, and cost overruns. Execution risks and dependence on government approvals also remain key factors.
Market watchers note that the stock’s recovery from its low reflects underlying optimism about L&T’s strategic direction, but profit-taking and weak market sentiment may keep near-term gains in check.