Larsen & Toubro (LT) investor relations material

Executive summary

• Achieved highest-ever quarterly order inflow of INR 1,356 billion (₹135,581 crore), up 17% YoY, with strong domestic and international momentum; order book reached INR 7.33 trillion (₹733,161 crore), up 30% YoY.

• Group revenues grew 10% YoY to INR 714 billion (₹71,450 crore), with recurring PAT up 31% YoY to INR 44 billion (₹4,406 crore); reported PAT declined due to a one-time INR 11.9 billion (₹1,191 crore) labour code provision.

• Net working capital to revenue ratio improved to 8.2%, a 450 bps YoY improvement.

• Return on equity improved to 16.5%, up 40 bps YoY.

• Major strategic initiatives included realty business consolidation, partnerships in defense and nuclear sectors, and data center rebranding.

Financial highlights

• Projects and manufacturing order inflows reached INR 1,164 billion, up 18% YoY; domestic orders up 30%, international up 7%.

• Group EBITDA margin improved to 10.4% from 9.7% YoY; projects and manufacturing EBITDA margin at 8.1%, up 50 bps.

• Cash flow from operations (ex-financial services) at INR 79 billion for Q3, up from INR 21 billion YoY; 9M FY26 at INR 184 billion, up from INR 83 billion YoY.

• Decline in finance cost due to lower borrowing levels and rates; other income increased from higher surpluses and yields.

• Order book as of December 2025 at INR 7.33 trillion, with 51% domestic and 49% international orders.

Outlook and guidance

• Expects to exceed 10% order inflow guidance for FY26, supported by strong nine-month performance and robust prospects pipeline of INR 5.9 trillion.

• Confident of achieving 15% full-year revenue growth, with Q4 expected to see customary execution ramp-up.

• Projects and manufacturing EBITDA margin target of 8.5% for FY26 remains intact.

• Revised net working capital to revenue target to around 10% by year-end.

• Company aims to capitalize on emerging opportunities through geographic expansion and focus on cost and cash flow management.