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Informist, Wednesday, Oct. 29, 2025

 

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--L&T: Jul-Sept consol margin dn largely due to IT, technology services ops
--CONTEXT: L&T management's comments at post-earnings call with analysts
--L&T: Some renewable projects in infra segment at initial execution phase
--L&T:Hyderabad metro posted INR 1.8 bln loss Q2 vs INR 2.1 bln loss yr ago
--L&T: Confident rise in group order inflow in FY26 will be more than 10%
--L&T: See margin in infra ops moving up, already backed in guidance
--L&T: We are well placed to get some 'ultra mega' orders
--L&T: See order from Aeronautical Development Agency finalising in Q4 FY27
--L&T: Confident of achieving projects, mfg portfolio margin of 8.5% FY26

 

By Rajesh Gajra and Shakshi Jain

 

NEW DELHI/MUMBAI – The Hyderabad Metro Rail operations of Larsen & Toubro Ltd. posted a loss of INR 1.8 billion in the September quarter, compared with a loss of INR 2.1 billion in the year-ago quarter, L&T's management said Wednesday in a post-earnings conference call with analysts and investors. The revenue from Hyderabad Metro project, which comes under the company's development projects segment, increased 11% on year to INR 2.6 billion in the September, data from the company's earnings investor presentation showed.

 

L&T's management said the total investment of the company in Hyderabad Metro till date is around INR 70 billion. In the consolidated accounts of the company, the year-to-date cumulative losses of Hyderabad Metro is already adjusted against the investment of INR 70 billion, it said. The share of the project in the company's consolidated books is lower than post-impaired value of INR 20 billion, the management said. The management said the company had "reached an in-principle understanding with the government of Telangana where the government of Telangana will take over the debt and the equity of L&T from the concerned SPV (special purpose vehicle) which is L&T Metro Rail Hyderabad.

 

On the bids under the government's advanced medium combat aircraft program by L&T's joint venture with Bharat Electronics Ltd., L&T's management said its understanding is that the order for the prototype will likely be awarded in the fourth quarter of 2026-27 (Apr-Mar). The company is hopeful of the joint venture company winning the order. The management said if the joint venture gets the order, the delivery of the prototype will be in FY29, with the test flight to happen in FY30.

 

On margins, the management said the company's consolidated margin in the September quarter declined largely due to its information technology and technology services operations. The earnings before interest, tax, depreciation, and amortisation margin declined to 10% in the September quarter from 10.3% in the year-ago quarter. The consolidated EBITDA was up 7% on year at INR 68.1 billion.

 

The management said the infrastructure projects segment margins will move up going forward. The management said the company was confident of achieving an EBITDA margin of 8.5% in the overall projects and manufacturing portfolio in FY26. In renewable energy projects, the management said some projects were at an initial phase of execution.

 

L&T's infrastructure projects segment posted a 1% on-year decline in revenue in the September quarter. The management said in the analyst call that this was partly because of slowing down of execution due to payment-related issues in water and effluent treatment projects. The projects are getting executed in these projects only if the company "is getting paid," the management said.

 

On consolidated order inflows, the L&T management said it was confident of exceeding the earlier guidance of 10% growth in group order inflows for FY26. The company is well placed to secure a few ultra mega orders, the management said.

 

L&T reported its September quarter earnings after the markets closed. On Wednesday, its shares ended at INR 3,958.10 on the National Stock Exchange, down 0.4%.  End

 

Edited by Akul Nishant Akhoury

 

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