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

Executive summary

• Achieved record order inflow of ₹3.57 lakh crore for FY25, up 18% year-over-year, with international orders comprising up to 58% of total inflow and revenue of ₹2.56 lakh crore, up 16% year-over-year, with 50% from international operations.

• Consolidated PAT for FY25 was ₹15,037 crore, up 15% year-over-year, including an exceptional gain of ₹475 crore from reversal of impairment in a JV; ROE improved to 16.3%.

• Order book reached ₹5,791 bn, up 22% year-over-year, with international orders constituting 46%.

• Free cash flow generated at ₹174 bn; 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; international revenue share at 49%.

• Q4 FY25 consolidated PAT: ₹5,497 crore, up 25% year-over-year.

• EBITDA for FY25: ₹26,435 crore, margin at 10.3% (down from 10.6% in FY24); net profit margin for FY25: 7.47%.

• Gross debt/equity ratio at 1.11; net debt/equity at 0.60 as of March 2025.

• Net cash from operations: ₹14,761.81 crore; net cash from financing: ₹6,556.62 crore.

Outlook and guidance

• Prospects pipeline of ₹19 trillion for FY26 provides strong order inflow visibility.

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

• Indian GDP growth for FY25 estimated at 6.25–6.5%, with robust consumption and government capex expected to drive momentum.

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

• Risks include global trade tensions, supply chain disruptions, and geopolitical uncertainties.