Larsen & Toubro (LT) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw resilient performance with consolidated revenues of ₹67,942 crore, up 7% YoY, and PAT rising 14% to ₹4,123 crore, supported by strong order inflows and a robust order book.

• Group order inflows grew 14% YoY to ₹1,080 billion (₹108,014 crore), with the order book reaching ₹7,790 billion, up 27% YoY; international orders comprised up to 56%.

• Strategic divestments included the sale of Nabha Power and an agreement to divest the Hyderabad Metro Rail stake; new partnerships were formed in defense, data security, EV motors, and AI cloud.

• Segment realignment under the Lakshya 2031 plan enhanced strategic focus and reporting clarity.

• Board approved the merger of L&T Power Development Limited with the parent company to streamline operations.

Financial highlights

• EBITDA for Q1 FY27 was ₹61.2 billion (₹6,116 crore), down 3% YoY, with margin at 9.0% (vs. 9.9% YoY); PAT rose 14% YoY to ₹41 billion.

• Net working capital to sales ratio improved to 4.9% from 10.1% YoY; cash and cash equivalents rose to ₹851 billion as of June 2026.

• Gross debt/equity ratio at 1.01; net debt/equity at 0.39; standalone debt/equity at 0.23.

• Net profit margin improved to 7.34% from 6.78% YoY; standalone net worth at ₹72,224 crore.

• Other income increased 75% YoY, supporting PAT growth; finance costs decreased 31% YoY.

Outlook and guidance

• Order inflow and revenue growth guidance for FY27 maintained at 10%-12%; PPM portfolio margin guidance at ~7.8%.

• Healthy prospects pipeline of ₹15 trillion for the next nine months; no major project cancellations expected.

• Continued growth expected, leveraging a robust order book and sector-specific technology investments.