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Larsen & Toubro Q1FY26 Results: Profit Surges 30%, Order Inflows at Record High

Last updated on 1 Aug 2025 Wraps up in 4 minutes Read by 145

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.

  • Net Profit: ₹3,617 crore (up 30% YoY)

  • Revenue: ₹63,679 crore (up 15.5% YoY)

  • EBITDA: ₹6,318 crore (up 13% YoY), margin at 9.9% vs 10.2% last year

  • Order Inflow: Record ₹94,453 crore (up 33% YoY)

  • Order Book (June 30, 2025): ₹6,12,761 crore (up 6% over March 2025)

Table of Contents

  1. Performance Analysis: Revenue, Profit & Margins
  2. Order Book: New Highs and Business Mix
  3. Segment Performance & Strategic Themes
  4. Share Price Movement: Market Cheers Results
  5. Management Commentary & Future Outlook
  6. Frequently Asked Questions (FAQs)

Performance Analysis: Revenue, Profit & Margins

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.

  • Revenue from Operations: ₹63,679 crore, up from ₹55,120 crore last year

  • EBITDA: ₹6,318 crore (9.9% margin, slightly lower than 10.2% in Q1 FY25)

  • 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.

L&T Quarterly Result | Finology Ticker

Order Book: New Highs and Business Mix

Order Inflows reached a historic ₹94,453 crore, up 33% YoY, spread across diverse verticals:

  • Power (thermal BTG and renewables)

  • Transmission & Distribution (hydel, non-ferrous, grid)

  • Hydrocarbon (offshore/onshore)

  • 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.

Segment Performance & Strategic Themes

  • Projects & Manufacturing: Core execution strength drove revenue and order gains.

  • IT & Technology: Digital, semiconductor, and data centre businesses continued to accelerate.

  • Green Energy: L&T is diversifying into renewables, aligning with global energy transition.

  • New Age Businesses: Expansion into semiconductors, digital platforms, and sustainability-focused ventures, as highlighted by management.

Share Price Movement: Market Cheers Results

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.

L&T’s share price chart | Finology Ticker

Management Commentary & Future Outlook

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:

  • Strong order inflow and diversified backlog provide multi-year growth visibility.

  • Near-term margin may remain under slight pressure due to mix and inflation, but execution scale and new business streams could offset this.

Frequently Asked Questions (FAQs)

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.

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