Larsen & Toubro reported a 3 per cent dip in consolidated net profit for Q4 FY26, primarily due to exceptional gains in the previous year, even as its consolidated order book impressively surged by 28 per cent to Rs 7.4 trillion, driven significantly by international projects.
Key Points
- L&T's consolidated net profit for Q4 FY26 declined by 3 per cent year-on-year to Rs 5,325.60 crore, attributed to exceptional gains in the prior year.
- Revenue from operations for Q4 FY26 increased by 11 per cent year-on-year to Rs 82,762.16 crore.
- The company's consolidated order book as of March 31, 2026, grew by 28 per cent year-on-year to Rs 7.4 trillion, with international orders making up 52 per cent.
- For the full FY26, L&T reported a 7 per cent growth in consolidated net profit to Rs 16,084 crore and a 12 per cent rise in revenue to Rs 2.85 trillion.
- L&T expects the West Asia conflict to impact its performance in H1 FY27 due to potential supply chain disruptions and rising input costs.
Infrastructure major Larsen & Toubro (L&T) on Tuesday reported a 3 per cent year-on-year (Y-o-Y) decline in consolidated net profit at Rs 5,325.60 crore for the fourth quarter of 2025-26 (FY26).
The slide in profit during the quarter was on account of exceptional Y-o-Y gains, but it had limited impact from the West Asia conflict, the company’s management said in a post-results call.
The company’s revenue from operations rose 11 per cent Y-o-Y to Rs 82,762.16 crore in Q4FY26.
During the quarter, L&T saw consolidated order inflow of Rs 89,772 crore, securing orders across sectors.
They included commercial and residential buildings, roads and runways, urban transport, transmission and distribution and the hydrocarbon onshore businesses.
Strong Order Book Growth and Full-Year Performance
The group’s consolidated order book as on March 31, 2026, stood at Rs 7.4 trillion, reflecting a Y-o-Y growth of 28 per cent.
International orders constituted 52 per cent of the overall order book.
The board of directors recommended a final dividend of Rs 38 per share, subject to the approval of shareholders.
For the full 2025-26, L&T reported 7 per cent Y-o-Y growth in consolidated net profit at Rs 16,084 crore.
Revenue from operations for the entire year rose 12 per cent to Rs 2.85 trillion.
The company secured orders worth Rs 4.35 trillion, registering 22 per cent growth for the year ended March 31, 2026.
Strategic Divestments and Future Outlook
During the year, L&T divested full stakes in Nabha Power Ltd and L&T Metro Rail (Hyderabad) Ltd, aligning with the company’s strategy to exit from the concessions portfolio, said chairman and managing director S N Subrahmanyan.
The transactions are expected to close by June 30.
L&T expects the West Asia conflict to weigh on its performance in the first half of 2026–27, citing potential supply chain disruptions and rising input costs, said Subrahmanyan.
It anticipates 10-12 per cent growth in revenue and stable margins for FY27.
Segment-wise Performance Highlights
The core infrastructure segment secured orders of Rs 43,477 crore during the quarter ended March 31, registering growth of 26 per cent from the previous financial year.
International orders constituted 67 per cent of the total order inflow for the quarter. As on March 31, the segment order book stood at Rs 4.22 trillion, with international orders contributing 48 per cent to the total.
The energy projects segment secured orders valued at Rs 21,296 crore during Q4FY26, registering a decline of 34 per cent Y-o-Y largely due to high-base effect.
International orders constituted 80 per cent of the total order inflow for the quarter.
The hi-tech manufacturing segment also reported 24 per cent decline in order inflows during Q4, largely due to the deferment of targeted orders.
IT & technology services (IT&TS) segment reported customer revenues of Rs 14,078 crore during the quarter, registering a 13 per cent Y-o-Y growth.
The financial services segment reported 22 per cent growth in income from operations at Rs 4,669 crore during the quarter.
Global Challenges and India's Growth Engines
L&T said the global environment remains challenging characterised by geopolitical issues resulting in disrupted trade conditions.
India’s services sector and digital economy, which are relatively less exposed to disruptions in West Asia, are expected to remain key growth engines, it said.
“The momentum is likely to be sustained by continued expansion in fintech, Cloud technologies, AI-enabled services, and the rise of global capability centres (GCCs),” it added.
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