Larsen & Toubro Q1 results: Net profit jumps 14% YoY to ₹4,123 crore, revenue rises 7%

In the corresponding period of the previous fiscal year, it had logged a profit of ₹3,617.19 crore, according to a regulatory filing.

Sequentially, however, it fell 22.58% quarter-on-quarter (QoQ) from ₹5,325.60 crore in the fourth quarter of the 2025-26 fiscal year (Q1 FY26).

The company recorded a consolidated revenue from operations of ₹67,942 crore during the quarter under review, marking a 6.69% YoY jump from ₹63,679 crore in the first quarter of FY26 (Q1 FY26).

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, fell 3% YoY to ₹6,116 crore in the quarter ended June 30, 2026, as against ₹6,318 crore in the year-ago period.

Its EBITDA margin contracted by 90 basis points (bps) YoY to 9% for the reporting quarter, from 9.9% in the June FY26 quarter.

Order book

L&T secured orders worth ₹1.08 lakh crore in Q1 FY27, registering a YoY growth of 14%, with significant order wins being achieved across multiple businesses such as Residential & Commercial buildings, Transportation Infrastructure, Ferrous Metals, Offshore Wind and the Heavy Engineering businesses.

Its international orders stood at ₹60,702 crore, contributing 56% to the total order inflow.

The Group’s consolidated order book as on June 30, 2026, was at ₹7.79 lakh crore, reflecting a 5% growth over order book as on March 31, 2026. The international orders constituted 52% of the overall order book.

Outlook

“The Indian economy has navigated the prevailing global environment with resilience, supported by strong economic fundamentals that continue to reinforce confidence in its growth prospects. Domestic demand continues to remain healthy, with sustained expansion across both manufacturing and services activity. Policy measures continue to be geared towards maintaining macroeconomic stability, with a focus on sustaining capital inflows, supporting investment activity,” L&T said.

However, the company’s growth momentum could be interrupted by the adverse implications of the extended disruption in supply chains and elevated energy prices, as inflation is expected to trend higher from its relatively benign levels, driven by higher food, energy prices, weather-related uncertainties, and currency depreciation.

The global environment is characterised by divergent monetary and fiscal policy frameworks set against a backdrop of geopolitical tension, trade realignment, AI-driven transformation, and climate-related challenges, all of which are reshaping the global economy, the firm further stated.

In energy markets, the resurgence of geopolitical tensions in West Asia and continued uncertainty around global trade policies remain key risks, it added.

Against the ever-changing economic and geopolitical landscape, the company said it remains committed to delivering sustainable shareholder value by leveraging sector-specific technology, investing in AI, and adopting digital solutions to enhance productivity and competitiveness.

“The company is also focused on ensuring efficient and profitable execution of its robust order book, maintaining financial discipline, and allocating capital judiciously across targeted growth sectors,” it said.

What the Chairman said

Commenting on the results, S N Subrahmanyan, Chairman and Managing Director, said: “The financial year has commenced against the backdrop of geopolitical uncertainties. The Company has managed to maintain momentum by rotating its focus across sectors and geographies while maintaining robust cash flows. The performance for the quarter reflects our portfolio resilience."

During the quarter, L&T successfully concluded the sale of Nabha Power Limited, consistent with its stated strategy of exiting the concessions portfolio.

Furthermore, it signed the share purchase agreement with Hyderabad Metro Rail Limited (HMRL), a Government of Telangana Enterprise, to divest 100% of its stake in Hyderabad Metro special purpose vehicle (SPV), he stated.

"With a well-diversified portfolio spanning sectors and geographies, we remain confident of maintaining growth while capitalising on emerging opportunities. Our continued focus on disciplined execution with innovation positions us well to deliver sustainable long-term value for stakeholders," Subrahmanyan further added.

Ahead of the result announcement, shares of L&T closed 0.68% higher at ₹3,832 per unit on the National Stock Exchange (NSE) on Tuesday.