L&T Q1 FY26 results: Profit grows 30% to ₹3,617 cr, surpasses estimates

Business Standard

3 days ago

Engineering and construction conglomerate Larsen & Toubro's (L&T's) profit (attributable to owners of the company) for the first quarter (Q1) of 2025-26 (FY26) grew by 29.8 per cent year-on-year (Y-o-Y) to ₹3,617.2 crore, amid higher revenues.
L&T's revenue from operations for Q1FY26 increased by 15.5 per cent Y-o-Y to ₹63,678.92 crore, amid healthy execution witnessed in its key projects and manufacturing portfolio.
The profit beat the Bloomberg analysts' poll estimate of ₹3,400.5 crore. The revenue also topped the analysts' estimate of ₹62,831.9 crore. L&T's other income during the quarter went up by 47 per cent to ₹1,357 crore on a Y-o-Y basis.
'Fifteen per cent revenue growth and a 30 per cent profit after tax growth augur well for the profitable execution of the various business contracts that the company has entered into,' said R Shankar Raman, whole-time director and chief financial officer, L&T.
The company's total expenses during the quarter grew by 15.2 per cent to ₹59,176.17 crore.
S N Subrahmanyan, chairperson and managing director, L&T, said, 'This quarter we have performed well across all financial parameters. Besides improved performance on all profit-and-loss parameters, the return ratios have also moved higher. The projects and manufacturing businesses of the company continue to perform well.'
L&T's consolidated order book stood at ₹6.12 trillion as of June 30, 2025, up 25 per cent Y-o-Y. The share of international orders remained at around 46 per cent.
The company received new orders worth ₹94,453 crore during the quarter, up 33 per cent Y-o-Y, the highest ever in a Q1. International orders stood at ₹48,675 crore, accounting for 52 per cent of the total order inflow.
The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) for the quarter under review stood at ₹6,318 crore, up 12.52 per cent Y-o-Y. Meanwhile, its Ebitda margin stood at 9.9 per cent, compared to the margin of 10.2 per cent in Q1 of 2024-25.
The company's gross debt-to-equity ratio stood at 1.13x as of June 30, 2025, against the ratio of 1.12x as of June 30, 2024.
Referring to geopolitical tensions, tariff-related events, and technology disruptions, Raman said, 'To navigate through these headwinds and stay the course has been an exciting challenge for all of us in the company, and we are extremely pleased that we ended on the right side of the line.'
Global economic activity is expected to remain subdued with uneven momentum. Regional growth patterns have become more fragmented, as geopolitical and policy uncertainties reshape the economic outlook, L&T noted.
'Given the prevailing economic environment, the company remains focused on sustained execution of its large order book, scaling up the new businesses, and capitalising on the emerging opportunities,' the company added.
Sequentially, the company's revenue dipped by 14.4 per cent, while its profit declined by 34.2 per cent. L&T's shares listed on the BSE closed at ₹3,495.10 per equity share on Tuesday (29 July).