Larsen & Toubro (L&T), India’s largest engineering and infrastructure conglomerate, reported a 30% year-on-year surge in consolidated net profit to ₹3,617 crore for the quarter ended June 30, 2025, outperforming analyst expectations. Revenue from operations climbed 15.5% YoY to ₹63,679 crore, reflecting strong execution across core businesses and robust international demand.
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Net Profit: ₹3,617 crore (up 30% YoY)
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Revenue: ₹63,679 crore (up 15.5% YoY)
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EBITDA: ₹6,318 crore (up 13% YoY), margin at 9.9% vs 10.2% last year
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Order Inflow: Record ₹94,453 crore (up 33% YoY)
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Order Book (June 30, 2025): ₹6,12,761 crore (up 6% over March 2025)
Table of Contents
- Performance Analysis: Revenue, Profit & Margins
- Order Book: New Highs and Business Mix
- Segment Performance & Strategic Themes
- Share Price Movement: Market Cheers Results
- Management Commentary & Future Outlook
- Frequently Asked Questions (FAQs)
L&T’s strong revenue growth was driven by its Projects & Manufacturing division, with international operations (Middle East & Africa) now accounting for 52% of total revenues - reflecting the company’s robust global franchise.
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Revenue from Operations: ₹63,679 crore, up from ₹55,120 crore last year
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EBITDA: ₹6,318 crore (9.9% margin, slightly lower than 10.2% in Q1 FY25)
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Profit After Tax (PAT): ₹3,617 crore vs ₹2,786 crore in Q1 FY25
L&T beat market estimates on both top and bottom lines. Management maintained a focus on execution efficiency, though margins saw a marginal dip due to competitive bidding and business mix, which is typical as order books scale up.
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Order Inflows reached a historic ₹94,453 crore, up 33% YoY, spread across diverse verticals:
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Power (thermal BTG and renewables)
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Transmission & Distribution (hydel, non-ferrous, grid)
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Hydrocarbon (offshore/onshore)
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Real Estate (commercial & residential)
International orders formed 52% of inflow, led by strong momentum from the Middle East. The consolidated group order book now stands at ₹6,12,761 crore, providing strong revenue visibility for multiple years ahead.
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Projects & Manufacturing: Core execution strength drove revenue and order gains.
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IT & Technology: Digital, semiconductor, and data centre businesses continued to accelerate.
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Green Energy: L&T is diversifying into renewables, aligning with global energy transition.
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New Age Businesses: Expansion into semiconductors, digital platforms, and sustainability-focused ventures, as highlighted by management.
Following Q1 results, L&T’s share price surged 4.4% to ₹3,651, becoming the top gainer on the Nifty 50 index. The stock’s move was a direct response to both the earnings beat and robust order inflow. Major brokerages raised their target prices, reflecting increased confidence in L&T’s growth trajectory and citing strong upside potential from current levels.
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To assess how investors are responding to Larsen & Toubro’s Q1 FY26 earnings and future outlook, check the latest L&T share price, charts, and key valuation indicators.
Chairman & MD S.N. Subrahmanyan reaffirmed L&T’s focus on execution and innovation, stating that the company is well on track to meet or exceed targets under the Lakshya '26 five-year plan. Management highlighted strong tendering activity in the international (especially Middle East) markets, growing digital and sustainability-linked businesses, and a strategic focus on new-growth segments as key drivers of continued outperformance.
Analyst Takeaways:
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Strong order inflow and diversified backlog provide multi-year growth visibility.
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Near-term margin may remain under slight pressure due to mix and inflation, but execution scale and new business streams could offset this.
Want to see how another major infrastructure player performed this quarter? Dive into the Adani Green Q1 FY26 Results for insights into their 60% profit surge and capacity-driven growth.
1. What was L&T’s net profit in Q1 FY26?
₹3,617 crore, up 30% compared to ₹2,786 crore a year ago.
2. How did revenue perform this quarter?
Revenue from operations rose 15.5% year-on-year to ₹63,679 crore.
3. What drove L&T’s order inflow in Q1 FY26?
A broad-based surge in order wins across power, T&D, hydrocarbons, and real estate, with the Middle East driving international growth. Total inflow was ₹94,453 crore, up 33% YoY.
4. How did markets react to L&T’s results?
L&T shares rose over 4% after the results, reflecting investor optimism on strong financials and record order wins. The stock hit ₹3,651 and attracted positive upgrades from leading brokerages.
5. What is the outlook for L&T?
With a record order book, greater global presence, and diversification into green and digital business lines, L&T looks well positioned for multi-year growth. The management remains confident in meeting Lakshya '26 goals.
In summary:
Larsen & Toubro’s Q1 FY26 results underline its status as a leader in India’s engineering and infrastructure space. With robust revenue and profit growth, a record order inflow, and a positive market response, L&T continues to deliver on both operational excellence and strategic expansion - offering long-term value to its investors.