Larsen & Toubro (LT) Q4 24/25 earnings summary

Executive summary

• Achieved record order inflow of ₹3.57 trillion for FY25, up 18% year-over-year, with international orders comprising up to 58% of total inflow and revenues up 16% year-over-year, with 50% from international operations.

• Consolidated PAT for FY25 was ₹150 billion, up 15% year-over-year, including an exceptional gain of ₹475 crore from reversal of impairment in a JV.

• Order book reached ₹5.79 trillion, up 22% year-over-year, with international orders constituting 46%.

• Free cash flow generated at ₹174 billion; net working capital/revenue at 11%, lowest in a decade.

• Board recommended a final dividend of ₹34 per share, up from ₹28 last year.

Financial highlights

• Q4 FY25 consolidated revenue: ₹74,392 crore, up 11% year-over-year; Q4 FY25 order inflow rose 24% year-over-year to ₹896 billion.

• EBITDA for FY25: ₹26,435 crore, margin at 10.3% (down from 10.6% in FY24); Q4 FY25 EBITDA margin at 11.0%.

• Consolidated PAT for Q4 FY25: ₹5,497 crore, up 25% year-over-year; recurring PAT for Q4 FY25 increased 17% year-over-year to ₹50.2 billion.

• Debt-equity ratio improved to 1.11; net working capital/revenue at 11.0%, lowest in a decade.

• Net cash from operations at ₹14,761.81 crore; free cash flow generated at ₹174 billion in FY25.

Outlook and guidance

• Prospects pipeline of ₹19 trillion for FY26 provides strong order inflow visibility; Indian GDP growth for FY25 estimated at 6.25–6.5%.

• Strategic plan targets CAGR of 14% in order inflow and 15% in revenue for FY21–FY26; FY25 achieved 19% and 17% CAGR respectively.

• Focus on timely execution, liquidity preservation, and capital efficiency while pursuing profitable growth in renewables and digital infrastructure.

• Guidance for FY25 maintained, with margin guidance for P&M at 8.2%-8.25%.

• ROE target of 18% by FY26, with improvement expected from Hyderabad Metro loss reduction, higher payouts, and margin gains.