Missing analyst estimates by a wide margin , construction and engineering major Larsen & Toubro (L&T) posted a 4.3% decline in net profit in the third quarter of FY26 at Rs 3,215 crore compared with Rs 3,359 crore in the year-ago period. Analysts estimated a profit of Rs 4,494 crore.
The profit came down because of an exceptional item of Rs 1,191 crore pertaining to provisions for gratuity liability of its workforce under the new labour codes. Without the exceptional item, PAT was at Rs 4,400 crore – a 31% year-on-year (y-o-y) growth – the company said.
Record Q3 inflows, domestic share rises
The company got orders worth Rs 1,35,581 crore, reflecting a y-o-y growth of 17% for the third quarter of FY26. The company posted the highest-ever quarterly order inflows, driven by strong domestic momentum. Domestic order inflows stood at Rs 68,800 crore, about 51% of the total inflows. International orders stood at Rs 66,848 crore, accounting for 49% to the total. In Q3FY25, international inflows accounted for 54% of the total and domestic orders 46%.
The company said domestic inflows were led by building and factories and oil and gas. The Q3FY26 order inflows spanned multiple geographies and a set of diverse sectors including thermal Power, hydrocarbons, renewable infrastructure, transmission & distribution, and roads & runways.
For the first nine months of FY26, the company recorded consolidated order inflows of Rs 3,45,818 crore, registering a y-o-y growth of 30%. L&T’s consolidated order book as on December 31 stood at Rs 7,33,161 crore, reflecting a 30% growth over December 2024. International orders constituted 49% of the overall order book.
L&T missed analyst estimate on revenues front also. However, revenues rose 10.5% y-o-y to Rs 71,450 crore compared with Rs 64,668 crore in the year-ago period. Analysts estimated revenues of Rs 73,599 crore.
The company posted a 19% growth in its Ebitda in Q3FY26 at Rs 7,417 crore compared with Rs 6,255 crore in Q3FY25. Analysts estimated Ebitda of Rs 7,454 crore.
It Ebitda margins rose to 10.4% in Q3FY26 from 9.7% In Q3FY25. The company said it has strong prospect pipeline of around Rs 5.9 lakh crore for the near term. S N Subrahmanyan, chairman and managing director, said that for the first time, the quarterly order inflows in their projects and manufacturing (P&M) portfolio crossed the Rs 1-lakh-crore mark and consequently, the order book surpassed the Rs 7 lakh crore mark. “Looking ahead, we remain optimistic that pro-growth momentum will be maintained in the ecosystem through sustained capital expenditure. We expect additional policy thrust to strengthen domestic manufacturing and fiscal incentives to support the deepening of India’s digital and AI ecosystem,” he said.
Order wins put FY26 targets on track
In a media call , R Shankar Raman, president, director and chief financial officer, said the company will exceed its order inflow growth target of 10% and pursue revenue and other targets. “In Q3 and in the first nine months of FY26, we had an excellent run in terms of staying competitive and winning orders we were pursuing,” he said.
He said the order secured by buildings & factories, oil and gas, CarbonLite divisions from private sector companies boosted domestic order inflows, helping the private sector share to cross 60% and reducing reliance on government and infrastructure orders.
Subramanian Sarma, deputy managing director, said the memorandums of understanding signed by the company in nuclear energy will translate into definite agreements. “In 3-6 months, more clarity will emerge,” he said.