Larsen & Toubro (LT) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw robust growth with order inflow up 33% year-over-year to ₹94,453 crore (₹945 billion), revenue up 16% to ₹63,679 crore (₹637 billion), and PAT up 30% to ₹3,617 crore (₹36 billion), with international orders comprising up to 52%.

• Order book reached ₹612,761 crore (₹6.13 trillion), a 25% increase year-over-year, with international share at 46%.

• Strategic restructuring in hydrocarbons, major green hydrogen contract win, and India's first ESG bond issuance marked significant milestones.

• L&T Finance crossed ₹1 trillion in its loan book and received international investment-grade ratings.

• New-age businesses in semiconductors, data centers, green energy, and digital platforms are expected to contribute meaningfully over the next five years.

Financial highlights

• Group order inflows for Q1 grew 33% YoY to ₹94,453 crore (₹945 billion); order book at ₹612,761 crore (₹6.13 trillion), up 25% YoY.

• Group revenues for Q1 at ₹63,679 crore (₹637 billion), up 16% YoY; products and manufacturing revenues at ₹45,800 crore (₹458 billion), up 19% YoY.

• Reported PAT for Q1 at ₹3,617 crore (₹36 billion), up 30% YoY, with net profit margin at 6.78%.

• Group EBITDA margin (excl. other income) at 9.9% vs 10.2% YoY; products and manufacturing margin stable at 7.6%.

• Net working capital to revenue improved to 10.1%, a 380 bps YoY improvement.

Outlook and guidance

• FY26 guidance unchanged: order inflows to grow 10%, revenues to grow 15%, NWC/revenue at 12%.

• Strong prospects pipeline of ₹14.8-15 trillion for the next nine months, up 63% YoY.

• Focus on executing the large order book and scaling new businesses amid resilient domestic economic conditions.