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Mumbai: Engineering and infrastructure conglomerate Larsen & Toubro (L&T) reported a robust 30% year-on-year (YoY) jump in consolidated net profit for the quarter ended June 30, 2025, as strong execution across business segments and record order inflows powered performance. Consolidated Profit After Tax (PAT) stood at ₹3,617 crore, up from ₹2,786 crore in the corresponding quarter last year.
The company’s consolidated revenue for the first quarter of FY26 rose 16% YoY to ₹63,679 crore, driven by solid growth in the infrastructure, energy and services businesses. L&T also recorded its highest-ever Q1 order inflow of ₹94,453 crore, registering a growth of 33% YoY, reflecting robust demand from both domestic and international markets.
“We have started FY26 on a strong note, with robust performance across all operating segments and continued traction in international markets. Our businesses remain focused on scale, discipline, and value creation,” said S. N. Subrahmanyan, Chairman & Managing Director, L&T.
📊 Key Consolidated Financial Highlights – Q1 FY26
| Metric | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹63,679 crore | ₹54,902 crore | +16% |
| Consolidated PAT | ₹3,617 crore | ₹2,786 crore | +30% |
| Order Inflow | ₹94,453 crore | ₹71,000 crore | +33% |
| Order Book (as on Jun 30) | ₹6.13 lakh crore | ₹4.75 lakh crore | +29% |
| International Revenue Share | ₹32,994 crore | ₹26,800 crore | 52% of total |
🔍 Segment-Wise Performance
Infrastructure Projects, the largest revenue contributor, recorded ₹28,757 crore in revenues, up 7% YoY, with an EBITDA margin of 5.7%. The segment secured fresh orders worth ₹41,024 crore, largely from the domestic market.
Energy Projects stood out with an impressive 47% YoY revenue growth to ₹12,470 crore and strong order inflow of ₹31,420 crore, of which 71% came from overseas markets. This segment’s EBITDA margin expanded to 7.3%, highlighting strong operational efficiency.
Hi-Tech Manufacturing revenue rose 75% YoY to ₹3,227 crore, though order inflows dipped 49% due to a high base effect. The segment delivered industry-leading margins of 15.1%.
The IT & Technology Services segment, comprising L&T Technology Services (LTTS) and LTI Mindtree, generated revenues of ₹12,619 crore (up 10% YoY), with 92% of the billing from international clients and healthy operating margins of 19.5%.
The Financial Services vertical, which includes L&T Finance, posted ₹3,971 crore in revenue, up 8% YoY. Retail loans now constitute 98% of the total loan book of ₹1.02 lakh crore, reflecting the company’s strategic shift away from wholesale exposure.
🏗️ Order Book at All-Time High
L&T’s total order book as of June 30, 2025, stood at a massive ₹6.13 lakh crore, of which 46% comprises international orders, underlining the company’s strong global positioning. Key orders were bagged in segments like hydrocarbon, power transmission, data centers, and metro projects in the Middle East, Africa, and Southeast Asia.
In its investor note, the company stated that it expects continued ordering momentum in the coming quarters, backed by robust infrastructure spend in India and increasing demand for clean energy and digital infrastructure globally.
🏭 Standalone Results Snapshot
On a standalone basis, L&T reported net profit of ₹3,078 crore, marginally down from ₹3,126 crore in the year-ago period. Total income stood at ₹24,921 crore, compared to ₹23,099 crore in Q1 FY25.
The company maintained a healthy financial profile with a debt-to-equity ratio of 0.31 and interest coverage ratio (ISCR) of 9.52. The current ratio stood at 1.26, indicating adequate liquidity to meet short-term obligations.
🌍 Outlook: Riding the Infra and Tech Megatrends
The management reaffirmed its FY26 guidance, citing rising opportunities across traditional infrastructure, digital tech, semiconductors, green energy, and industrial decarbonization.
“L&T is now transitioning toward becoming a future-ready technology-driven EPC player. Our exposure to digital businesses, renewable energy and international markets is growing faster than traditional lines,” Subrahmanyan noted.
The company’s new-age business bets, including smart metering, EV infrastructure, and green hydrogen, are expected to significantly contribute to growth over the next five years.
📈 Market Reaction
Following the strong results, shares of L&T ended the day 2.4% higher at ₹3,972 on the NSE, with analysts maintaining a bullish outlook on the stock. Brokerages such as CLSA and Jefferies reiterated their ‘Buy’ ratings, citing robust order visibility, improving return ratios, and a well-diversified business model.
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