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

Executive summary

• Q1 FY26 saw record order inflow of ₹94,453 crore, up 33% year-over-year, with international orders comprising up to 52%.

• Revenue rose 16% year-over-year to ₹63,679 crore, with international share up to 52%.

• PAT grew 30% year-over-year to ₹3,617 crore, and return on equity improved by 230 bps to 17%.

• Order book reached ₹612,761 crore as of June 30, 2025, up 25% year-over-year, with international orders at 46%.

• Won India's largest Green Hydrogen supply tender and listed the first ESG bond on NSE.

Financial highlights

• EBITDA for Q1 FY26 was ₹6,318 crore, up 13% year-over-year, with margin at 9.9% (down from 10.2%).

• Group order inflows for Q1 grew 33% YoY to ₹945 billion; order book at ₹6.13 trillion, up 25% YoY.

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

• Cash flow from operations (excluding financial services) at ₹62 billion, vs outflow of ₹14 billion YoY.

• Basic and diluted EPS for the quarter were ₹26.30.

Outlook and guidance

• FY26 guidance unchanged: order inflows to grow 10%, revenues 15%, and net working capital to revenue at 12%.

• Strong prospect pipeline of up to ₹15 trillion for the next nine months, up 63% YoY.

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

• Domestic growth supported by policy stability, digitalization, and strong balance sheets.

• Global economic activity expected to remain subdued and fragmented due to geopolitical and policy uncertainties.