Larsen & Toubro (LT) Q2 26/27 earnings summary

Executive summary

• Q2 order inflows set a record at ₹147,665 crore, up 28% YoY; revenue rose 16% to ₹78,750 crore and PAT increased 33% to ₹5,202 crore.

• Order book reached ₹853,514 crore at September 30, up 28% YoY and 15% from March 2026; international orders were 54% of the total, with average execution of 33 months.

• H1 revenue grew 11% to ₹146,692 crore, PAT rose 24% to ₹9,325 crore and order inflows increased 22% to ₹255,678 crore.

Financial highlights

• Q2 EBITDA was ₹6,845 crore, up 1% YoY, while margin eased to 8.7% from 10.0%; H1 EBITDA fell 1% to ₹12,961 crore, with margin at 8.8%.

• International revenue was ₹45,870 crore, or 58% of Q2 revenue; H1 international revenue was ₹80,263 crore, or 55% of the total.

• Q2 other income rose to ₹2,310 crore from ₹1,380 crore, supported by surplus funds, improved yields and a one-time SWC business divestment gain in LTTS.

• H1 reported PAT was ₹9,325 crore versus ₹7,540 crore; Q2 finance cost fell 38% and depreciation declined 5%, partly reflecting Hyderabad Metro non-consolidation.

• Standalone H1 net profit was ₹7,825 crore versus a loss of ₹106 crore; the prior-year period included a ₹7,122 crore exceptional loss.

Outlook and guidance

• FY2027 order inflow and revenue growth guidance remained 10%–12%; H1 inflows grew 22% YoY and the near-term prospects pipeline was ₹10 trillion.

• PPM FY2027 EBITDA margin target remained 7.8%, supported by execution and revenue-growth expectations.

• Net working capital is expected to close below the earlier FY guidance of 10%, despite possible moderation as H2 execution volumes rise.

• Solar order momentum is expected to improve in H2; semiconductor design and chip sales are expected to gain revenue traction in the next one or two quarters.

• Priorities include operational excellence, productivity, innovation, digital capabilities, strong cash conversion and growth in electronics, semiconductors, data centers and green hydrogen.