Engineering and construction behemoth Larsen & Toubro (L&T) delivered a strong performance in the second quarter of fiscal year 2026, reporting a 15.6% year-on-year (YoY) increase in its consolidated net profit to Rs. 3,926 crore. For investors tracking the infrastructure sector, the highlight was the exceptional surge in order inflows, which pushed the company's order book to a record high, offering strong visibility into future growth.
The robust bottom line was fueled by a healthy 10.4% rise in revenue to Rs. 67,984 crore. The results showcase L&T's strong execution capabilities and its prime position to capitalise on the ongoing infrastructure and energy capex cycle in both India and the Middle East.
Table of Contents
- L&T's Q2 Financials: A Snapshot of Solid Growth
- Order Inflows: The Star of the Quarter
- How Did L&T's Business Segments Perform?
- The Investor's Bottom Line: A Well-Oiled Growth Engine
- Frequently Asked Questions (FAQs)
L&T's Q2 results reflect solid operational execution, although the headline numbers slightly missed some aggressive analyst estimates.
Key Financial Highlights for Q2 FY26
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To assess how the market has priced in Larsen & Toubro Ltd.’s strong Q2 FY26 earnings momentum, check the latest L&T share price along with valuation ratios and performance charts.
The most significant highlight of the quarter was the phenomenal growth in order inflows, which provides strong visibility for future revenue.
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Massive Order Wins: L&T secured new orders worth Rs. 1,15,784 crore in Q2 FY26, a massive 45% YoY jump.
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Record Order Book: The consolidated order book has reached a record Rs. 6,67,047 crore as of 30 September 2025, up 15% from March 2025 levels.
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International Strength: A key driver of this growth was the international market, particularly the Middle East. International orders accounted for 65% of the new orders in Q2 and make up 49% of the total order book.
L&T's diversified business model is its core strength, with the Energy segment being the standout performer this quarter.
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Infrastructure Projects (47% of Revenue): This remains the largest segment, but its revenue declined by 1% YoY to Rs. 31,759 crore. The company attributed this to slower-than-expected progress in some projects and the impact of an extended monsoon.
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Energy Projects (19% of Revenue): This was the star performer, with revenue soaring by 48% YoY to Rs. 13,082 crore, driven by strong execution of large international hydrocarbon projects.
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Hi-Tech Manufacturing (4% of Revenue): This segment also posted robust growth, with revenue increasing by 33% YoY to Rs. 2,754 crore.
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IT & Technology Services (19% of Revenue): Comprising L&T's listed IT subsidiaries (LTIMindtree, LTTS), this segment grew by 13% YoY to Rs. 13,274 crore, reflecting a recovery in tech spending.
There’s a useful video by NDTV Profit where experts explain when it could be the right time to buy L&T shares — worth watching if you’re tracking its Q2 FY26 results.
For investors, L&T's Q2 results are a strong reaffirmation of its dominant position as a proxy for the infrastructure-led growth story in India and the Middle East.
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Unprecedented Order Book: A record order book of over Rs. 6.6 lakh crore provides unparalleled revenue visibility for the coming years.
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Strong Profitability: A 16% jump in net profit demonstrates the company's ability to translate its massive scale into healthy bottom-line growth.
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Geographical Diversification: The increasing share of international orders, especially from the high-spending Middle East market, reduces the business's dependence on the Indian economy.
While the slight dip in infrastructure segment revenue and the minor margin compression are areas to monitor, the overall momentum is undeniably positive. Chairman and MD S.N. Subrahmanyan highlighted the company's "well-rounded financial performance across all parameters".
Want to understand how L&T built momentum leading into its latest quarter? Read the detailed L&T Q1 FY26 Results analysis for insights on profit expansion and record order inflows.
1. What were the key highlights of L&T's Q2 FY26 results?
L&T reported a 15.6% YoY increase in net profit to Rs. 3,926 crore and a 10.4% rise in revenue. The standout feature was a 45% YoY jump in order inflows, taking the total order book to a record high of Rs. 6.67 lakh crore.
2. Why is L&T's large order book important?
A large order book provides strong revenue visibility for the future. It means the company has secured a significant amount of work that will be executed over the next few years, ensuring a steady stream of income.
3. Which segment drove L&T's growth in Q2?
The Energy Projects segment was the star performer, with revenue soaring by 48% YoY, primarily due to large international projects in the hydrocarbon sector.
4. How did the market react to L&T's results?
The market reacted positively, with L&T's shares hitting a fresh 52-week high of Rs. 4,048 in the following trading session. Brokerages like Motilal Oswal have raised their target prices, citing the strong order inflows.
5. Is L&T a good long-term investment?
For long-term investors, L&T remains a core portfolio holding. It represents a direct play on the multi-year infrastructure development and energy transition themes in India and the Middle East, with a record-high order book providing a strong safety net for future growth.