Engineering major Larsen & Toubro on Tuesday posted a net profit of Rs 5,326 crore for the March quarter, down 3% year-on-year, missing Street estimates. Excluding exceptional items, however, net profits for the quarter were up 5%. Revenues rose 11% to Rs 82,762 crore, a shade below analysts’ estimates. The company’s operating profit margins came in at 10.4% as compared to 11% in Q4FY25. As such, the operating profits of Rs 8,610 crore were up just 5% y-o-y.
L&T recorded order inflows of ₹ 89,772 crore in Q4FY26 including several high-value wins in sectors including commercial & residential buildings, roads & runways, urban transport, transmission & distribution and onshore hydrocarbons. International orders stood at Rs 59,994 crore, contributing 67% of the total order inflow. For FY26, L&T’s order inflows grew 22% to Rs 4.35 lakh crore.
What did R Shankar Raman say?
R Shankar Raman, president, director and CFO said the healthy growth in the orders earlier in the year provided enough headroom to absorb a flat order flow in Q4, and yet report a 22% growth. Shankar Raman said the disruption caused by West Asia could impact business in Q1 and Q2 of FY27. “We are careful in giving revenue guidance. It is difficult to say where world will move,” he said.
S N Subrahmanyan, CMD said order inflow for the year exceeded a record ₹ 4 lakh crore. He added the company had achieved most of targets of Lakshya’26 plan, whether in terms of order book, revenue or exits from non-core businesses. Subrahmanyan said Lakshya’31would make the firm future- ready through accelerated adoption of AI & digital technologies and investments in data centers, green energy, industrial electronics & semiconductor technologies.
A look at the group’s order book
The group’s order book as on March 31 stood at a record high of ₹ 7.40 lakh crore, reflecting a 28% growth over March 2025, the company said. International orders constituted 52% of the overall order book. The company said it has a prospects pipeline of Rs 17.8 lakh crore for FY27.
Of this nearly Rs 9 lakh crore is from infrastructure, followed by conventional energy at about Rs 5 lakh crore, and renewable energy at Rs 2-3 lakh crore.
L&T’s international revenues for FY26 stood at ₹ 153,738 crore, constituting 54% of total revenues reflecting improved execution in overseas projects & manufacturing portfolio.
During the year, the company executed agreements for divesting full stakes in Nabha Power and L&T Metro Rail (Hyderabad) and it expect the closure of these transactions by 30th June 2026. “This aligns with our stated strategy to exit from the concessions portfolio,” Shankar Raman said. The board recommended a final dividend of ₹ 38 per equity share.