L&T Q1 PAT rises 14% to Rs 4,123 crore; order book reaches Rs 778,954 crore

Larsen & Toubro Limited (L&T) reported consolidated Profit After Tax (PAT) of Rs 4,123 crore for the quarter ended June 30, 2026, up 14% year-on-year, while consolidated revenues increased 7% to Rs 67,942 crore. The Group secured orders worth Rs 108,014 crore during the quarter, taking its consolidated order book to Rs 778,954 crore as of June 30, 2026.

International business remained a significant contributor during the quarter. International orders stood at Rs 60,702 crore, accounting for 56% of total order inflows, while international revenues reached Rs 34,393 crore, representing 51% of consolidated revenues.

The Board of Directors approved the unaudited financial results for the quarter and also sanctioned a Scheme of Amalgamation for the merger of wholly-owned subsidiary L&T Power Development Limited with L&T.

Order book

Order inflows of Rs 108,014 crore during the quarter were 14% higher year-on-year. The consolidated order book increased 5% from March 2026 levels to Rs 778,954 crore as of June 30, 2026, with international orders constituting 52% of the total.

Following the implementation of its ‘Lakshya 2031’ strategic plan, L&T realigned its reporting segments effective April 1, 2026.

The Infrastructure & Utilities segment secured order inflows of Rs 44,357 crore, more than doubling year-on-year. Customer revenues stood at Rs 21,858 crore, while the Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) margin was 5.1%, compared with 5.5% in the corresponding quarter of the previous year.

Energy

The Energy – Conventional segment reported order inflows of Rs 3,053 crore, down 90% year-on-year. The decline was attributed to deferment of anticipated orders and a high base effect from an ultra-mega order secured in the previous year. Customer revenues increased 14% to Rs 14,239 crore, while the EBITDA margin stood at 7.6%.

The Energy – Green segment secured orders worth Rs 33,042 crore, registering 58% growth, driven by ultra-mega orders in the Offshore Wind business. Customer revenues declined 11% to Rs 5,607 crore due to supply chain disruptions. The EBITDA margin stood at 6.0%.

The Manufacturing & Products segment reported order inflows of Rs 5,535 crore, up 74%, while customer revenues increased 9% to Rs 4,486 crore. The EBITDA margin declined to 15.2% from 17.5% in the year-ago period.

Technology, Platforms & Services recorded customer revenues of Rs 14,627 crore, an increase of 15%, with international billing contributing 92%. The EBITDA margin was 19.2%, compared with 19.5% in the previous year.

The Financial Services segment reported income from operations of Rs 5,042 crore, up 27%. Profit Before Tax (PBT) stood at Rs 1,236 crore, compared with Rs 943 crore in the corresponding quarter. The total loan book stood at Rs 129,634 crore as of June 30, 2026.

The Realty segment recorded order inflows of Rs 1,299 crore, up 32%, while customer revenues more than doubled year-on-year to Rs 1,009 crore. The EBITDA margin stood at 36.9%.

The Development Projects segment, comprising Nabha Power Limited up to its divestment on June 25, 2026, Hyderabad Metro till April 30, 2026, and the Green Energy business, recorded customer revenues of Rs 1,074 crore and Earnings Before Interest and Taxes (EBIT) of Rs 124 crore.

Amalgamation

L&T’s Board approved the amalgamation of L&T Power Development Limited, its wholly-owned subsidiary, with the parent company. Incorporated in 2007 as L&T’s power development arm, the subsidiary has ceased its core business operations and currently serves as an intermediate holding company.

Once the Scheme becomes effective, all shares held by L&T in the share capital of L&T Power Development Limited will be cancelled. No new shares or consideration will be issued in lieu of those shares.

The Scheme remains subject to necessary approvals, including sanction by the Mumbai bench of the National Company Law Tribunal (NCLT).

Management view

Commenting on the results, S N Subrahmanyan, Chairman and Managing Director, stated: “The financial year has commenced against the backdrop of geopolitical uncertainties. The Company has managed to maintain momentum by rotating its focus across sectors and geographies while maintaining robust cash flows. The performance for the quarter reflects our portfolio resilience.”

“During the quarter, we successfully concluded the sale of Nabha Power Limited, consistent with our stated strategy of exiting the concessions portfolio. Further, we have signed the share purchase agreement with Hyderabad Metro Rail Limited to divest our stake in Hyderabad Metro SPV,” he added.

Outlook

L&T noted that the Indian economy continues to demonstrate resilience supported by strong fundamentals, although risks persist from supply chain disruptions and elevated energy prices.

The company said it remains focused on leveraging sector-specific technology, investing in Artificial Intelligence (AI), and adopting digital solutions to improve productivity and competitiveness.