Larsen & Toubro (L&T) on Tuesday reported a better-than-expected performance for the April-June quarter, with consolidated net profit rising 14% year-on-year to Rs 4,123 crore, driven by healthy execution and strong order inflows despite an uncertain global environment. Revenue also came in ahead of Street expectations, while the engineering and construction major said supply-chain constraints continued to limit the pace of execution.
Revenue rose 7% to Rs 67,942 crore from Rs 63,679 crore in the year-ago period, ahead of the consensus estimate of Rs 67,545 crore. On a sequential basis, net profit declined 23%. Ebitda fell 3.2% to Rs 6,116 crore, reflecting pressure on operating margins.
Order inflow during the quarter increased 14% year-on-year to Rs 1.08 lakh crore, led by wins across residential and commercial buildings, transportation infrastructure, ferrous metals, offshore wind and heavy engineering. International orders accounted for Rs 60,702 crore, or 56% of the total order inflow. The company’s order book stood at Rs 7.8 lakh crore at the end of June, up 5% over March 2026, with overseas projects contributing 52%.
Chairman and Managing Director S N Subrahmanyan said the company had maintained growth momentum despite geopolitical uncertainties by balancing its exposure across sectors and geographies while sustaining strong cash flows. He said the quarter reflected the resilience of L&T’s diversified portfolio. During the quarter, the company completed the sale of Nabha Power and signed a share purchase agreement to divest its stake in the Hyderabad Metro Rail special purpose vehicle.
Looking ahead, L&T remains confident of sustaining order momentum. Chief Financial Officer and Director R Shankar Raman said the company is pursuing an opportunity pipeline of nearly Rs 15 lakh crore, split almost equally between domestic and international markets.
Infrastructure and utilities account for nearly half the pipeline, while hydrocarbon projects represent opportunities worth about Rs 3.5 lakh crore and renewable energy around Rs 2.5 lakh crore. At an estimated win rate of around 20%, the company expects to achieve its order inflow guidance for the year.
Raman said a sizeable portion of the international orders secured during the quarter came from Europe, making the company relatively insulated from the ongoing uncertainties in West Asia. Around 20% of the quarter’s order inflow originated from the Gulf region, where customer investment programmes remain intact despite geopolitical tensions. He added that L&T continues to engage closely with key clients in the region and remains optimistic about future opportunities.
He acknowledged that revenue growth could have been stronger had equipment and material supplies arrived on schedule, saying execution was constrained by delays in the supply chain during the quarter.
On emerging businesses, Raman said L&T is expanding its ambitions in AI infrastructure beyond building data centres. Through its partnership with Nvidia, the company aims to develop AI-led facilities that can offer higher-value services such as AI orchestration, NeoCloud offerings and AI factory solutions, positioning itself across the technology stack rather than remaining only an infrastructure provider.