Larsen & Toubro reported an 11 per cent on-year rise in consolidated revenue for the March quarter at ₹82,762 crore, though net profit declined 3 per cent to ₹5,326 crore, largely due to an exceptional gain recorded in the year-ago period. Recurring profit after tax grew 5 per cent to ₹5,289 crore, reflecting steady execution across businesses despite a high base and exceptional impacts in the previous year.
“Revenue growth reflects steady execution, though some projects saw deferred progress due to external factors—we believe these are revenues deferred and not denied,” said President, whole-time director & CFO, R Shankar Raman.
Total expenses for the quarter rose around 12 per cent on year to ₹76,000 crore, the fastest annual growth in costs in the last three quarters
For the full year FY26, the engineering and construction major posted a 12 per cent increase in revenue to ₹2.86 lakh crore, while recurring PAT rose 18 per cent to ₹17,238 crore, underscoring strong operational performance.
“Recurring profit growth of 18 per cent underscores the strength of our core operations,” said Raman adding, “Margins in certain segments were impacted by legacy projects, but this effect will recede as these jobs are closed out.”
The board recommended a final dividend of ₹38 per equity share.
Operationally, the company closed the year with record order inflows of ₹4.36 lakh crore, up 22 per cent on year, driven by strong traction across infrastructure, energy and hydrocarbon segments.
International orders continued to dominate, accounting for 58 per cent of annual inflows. In the March quarter alone, order inflows stood at ₹89,772 crore, with overseas orders contributing a higher 67 per cent.
The consolidated order book reached an all-time high of ₹7.4 lakh crore as of March-end 2026, marking a 28 per cent increase over the previous year and providing strong revenue visibility. International orders constituted 52 per cent of the backlog.
Outlook for FY27
In an analyst call the management forecast revenue growth at 10-12 per cent in FY27, with margins stable at 8.3 per cent.
Order inflows are seen rising 10-12 per cent with a prospective project pipeline in the range of ₹17-18 lakh crore. Of the total pipeline, infrastructure projects worth ₹9 lakh crore are seen as prospects.
“Given our strike rate, we expect another year of satisfactory growth in order inflows,” said Raman. “Despite global uncertainties, the opportunity landscape remains encouraging.”
Segments
In Q4, the infrastructure projects business reported 15 per cent growth in annual order inflows, supported by large wins in renewables, transmission and heavy civil infrastructure. The energy projects segment was a standout performer, with order inflows surging 56 per cent on strong demand in hydrocarbon and carbon-lite solutions.
The company also highlighted execution of marquee projects such as the Navi Mumbai International Airport Phase-1, Oman Botanic Garden and major hydrocarbon developments in West Asia. In hi-tech manufacturing, L&T delivered seven steam generators ahead of schedule and expanded strategic partnerships.
In its technology and services vertical, the company continued to scale digital capabilities, including commissioning new data centre capacity and advancing semiconductor and engineering intelligence initiatives.
Chairman and Managing Director S N Subrahmanyan said the company had largely achieved targets under its “Lakshya’26” plan and will now focus on a new five-year roadmap emphasising artificial intelligence, green energy, data centres and semiconductor technologies.
Strategically, L&T is also exiting non-core concessions, including stakes in Nabha Power and Hyderabad Metro, aligning capital allocation with core engineering and technology-driven businesses.