Larsen & Toubro (LT) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 order inflows rose 45% year-over-year to ₹1,158 billion, with group revenues up 10% to ₹680 billion and profit after tax up 16% to ₹39 billion; international revenues comprised 56%.

• Order book reached ₹6,670 billion as of September 2025, up 31% year-over-year, providing strong revenue visibility; international orders constituted up to 59%.

• Strategic partnerships and MoUs were signed in renewables, green energy, defense, and semiconductors; in-principle agreement for Hyderabad Metro SPV divestment.

• Group revenues for H1 FY26 grew 13% year-over-year to ₹1,317 billion, with international revenue at 54%.

• Hyderabad Metro SPV divestment aligns with portfolio realignment strategy.

Financial highlights

• Group order inflows at ₹1,158 billion in Q2 FY26, up 45% year-over-year; H1 FY26 order inflow at ₹2,102 billion, up 39%.

• Net Working Capital to Revenue ratio improved to 10.2%, down from 12.2% year-over-year.

• Return on Equity rose to 17.2%, up from 16.1% year-over-year.

• Group EBITDA margin at 10% (down from 10.3%); P&M EBITDA margin improved to 7.8% from 7.6%.

• Consolidated PAT for Q2 FY26 at ₹39 billion, up 16% year-over-year; H1 PAT at ₹75 billion, up 22%.

Outlook and guidance

• Confident of exceeding full-year FY26 guidance of 10% growth in group order inflows.

• Revenue growth guidance maintained at 15% for FY26, with stronger execution expected in H2.

• P&M business EBITDA margin target of 8.5% for FY26 reaffirmed.

• Working capital guidance unchanged at around 12% by March 2026.

• Strong prospect pipeline of ₹10.4 trillion for the near term, led by infrastructure and energy-hydrocarbon sectors.