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Informist, Tuesday, Jul. 28, 2026

 

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--L&T Apr-Jun consol net profit INR 41.23 bln 
--Analysts saw L&T Apr-Jun consol net profit at INR 38.50 bln 
--L&T Apr-Jun consol revenue INR 679.42 bln 
--Analysts saw L&T Apr-Jun consol revenue at INR 685.64 bln 
--L&T Apr-Jun consol net profit INR 41.23 bln vs INR 36.17 bln year ago 
--L&T Apr-Jun consol revenue INR 679.42 bln vs INR 636.79 bln year ago 
--L&T consol order book INR 7.79 tln as on Jun 30, up 5% on qtr 
--L&T Apr-Jun consol EBITDA margin 9.0% vs 9.9% year ago 
--L&T Apr-Jun consol EBITDA INR 61.16 bln vs INR 63.18 bln year ago 
--L&T Apr-Jun infra order inflow INR 443.57 bln vs INR 200.74 bln year ago 
--L&T Apr-Jun conventional energy order inflow INR 30.5 bln vs INR 314.2 bln 
--L&T Apr-Jun green energy order inflow INR 330.4 bln vs INR 209.5 bln 
--L&T Apr-Jun consol order inflow INR 1.08 tln vs INR 944.5 bln year ago 
--L&T Q1 international order inflow INR 607 bln, 56% of total order inflow 
--L&T Apr-Jun infra, utilities EBITDA margin 5.1% vs 5.5% year ago 
--L&T: Q1 infra ops EBITDA margin dn YoY due to expected delay in receivables 
--L&T Q1 consol EBITDA margin dn YoY on change in sales mix in infra, mfg ops 
--L&T Apr-Jun mfg, products EBITDA margin 15.2% vs 17.5% year ago 
--L&T Apr-Jun infra, utilities sales INR 218.58 bln vs INR 224.21 bln yr ago 
--L&T Apr-Jun conventional energy sales INR 142.4 bln vs INR 124.6 bln yr ago 
--L&T Apr-Jun green energy revenue INR 56.07 bln vs INR 63.35 bln yr ago 
--L&T: Q1 green energy sales dn due to West Asia conflict hitting solar ops 
--L&T: Supply chain disruptions, higher oil prices may hit growth momentum 

 

By Shakshi Jain and Arya S. Biju

 

NEW DELHI – Larsen & Toubro Ltd. Tuesday reported strong year-on-year growth in consolidated net profit for the June quarter on a moderate rise in revenues, aided by a sharp increase in other income. This came despite total expenses and tax outgo growing faster than revenue during the quarter. The bottom line comfortably beat Street estimates, while the top line missed analysts' consensus estimate.

 

The bottom line of the capital goods behemoth reverted to year-on-year growth after two quarters of decline. Top-line growth, on the other hand, grew at the slowest pace in more than five years.

 

L&T's consolidated net profit for the June quarter rose 14% on year to INR 41.23 billion. This, however, marked a sequential decline of almost 23%. Analysts' consensus estimate had pegged the bottom line at INR 38.50 billion for the quarter.

 

The Mumbai-based company's consolidated revenue from operations rose about 7% on year but declined nearly 18% sequentially to INR 679.42 billion. The Street had expected a top line of INR 685.64 billion for the reporting quarter.

 

In a presentation to investors, the company attributed the subdued revenue growth primarily to the execution stage of the order book and supply chain constraints in West Asia. L&T, however, saw a handsome jump in other income for the quarter. It rose over 75% on year and nearly 51% sequentially to INR 23.77 billion. The other income for the quarter was supported by higher group surplus funds and improved yields, it said. 

 

Meanwhile, total expenses rose over 7% on year but fell about 17% sequentially to INR 633.96 billion. This was mainly on the back of an 11% year-on-year rise in its largest cost, employee benefit expenses, to INR 140.43 billion. This rise in staff costs was driven by resource augmentation and salary increments across businesses, the company said. Cost of raw materials and components consumed for the quarter grew nearly 23% on year to INR 81.70 billion, while cost of construction materials consumed declined 16% on year to INR 117.29 billion.

 

The company's consolidated earnings before interest, tax, depreciation, and amortisation for the June quarter declined 3% on year to INR 61.16 billion. Its EBITDA margin for the quarter moderated to 9.0% from 9.9% a year ago, impacted by lower execution levels, foreign exchange variation in information technology subsidiaries and higher provisions made for expected credit loss, the company said. 

 

On a consolidated basis, the company's order book was at INR 7.79 trillion as of Jun. 30, registering an on-year growth of 27% and a sequential growth of 5%. It secured orders worth INR 1.08 trillion in Apr-Jun, up 14% on year. During the quarter, the company saw significant order wins across multiple businesses such as residential and commercial buildings, transportation, infrastructure, ferrous metals, offshore wind and the heavy engineering businesses. It received orders worth INR 607.02 billion from the international market, which accounted for 56% of total order inflows.

 

"With a well-diversified portfolio spanning sectors and geographies, we remain confident of maintaining growth while capitalising on emerging opportunities," S.N. Subrahmanyan, chairman and managing director, said in a press release. "Our continued focus on disciplined execution with innovation positions us well to deliver sustainable long-term value for stakeholders."

 

SEGMENT PERFORMANCE

As part of the group's Lakshya 2031 strategic plan, L&T realigned its portfolio and has reclassified its segments as infrastructure and utilities, energy–conventional, energy–green, manufacturing and products, technology, platforms and services, and realty business. 

 

The infrastructure and utilities segment reported net revenue of INR 218.58 billion for the June quarter, down 3% on year. "The subdued performance is largely attributed to execution challenges in the water & effluent treatment business," L&T said. During the June quarter, international revenues constituted 26% of the total customer revenues of the segment. The segment's EBITDA margin declined to 5.1% in the reporting quarter from 5.5% a year ago. This contraction was primarily due to a change in revenue mix and an increase in credit provisions on account of expected delays in collection of receivables. The segment's order inflow more than doubled on year to INR 443.57 billion in the June quarter, led by orders for residential and commercial buildings and ferrous metal projects. 

 

Net revenue from the company's technology, platforms and services segment, the second-biggest vertical, rose 15% on year to INR 146.27 billion. International billing contributed 92% of the total customer revenues of the segment. The segment's EBITDA margin for the quarter declined to 19.2% from 19.5% a year ago on higher manpower costs and foreign exchange variation adversely impacting hedged portfolio positions.

 

L&T's conventional energy segment reported net revenue of INR 142.39 billion, up 14% on year on improved execution in hydrocarbon and carbonlite solutions businesses. The segment recorded an EBITDA margin of 7.6% for the June quarter, up slightly from the 7.5% reported in the corresponding quarter a year ago. 

 

The conventional energy segment secured orders worth INR 30.53 billion in the June quarter, down 90% on year. "The decline reflects the deferment of certain anticipated orders and the high base effect arising from an ultra-mega order secured in the CarbonLite Solutions business in the corresponding period of the previous year," L&T said. International orders constituted 77% of the total order inflow during the quarter. The segment's order book was INR 2.21 trillion as of Jun. 30, with the international order book representing 63%.

 

Net revenue from the green segment declined 11% on year to INR 56.07 billion, largely due to supply chain disruptions caused by the West Asia conflict in the solar business. International revenues constituted 87% of the segment's total customer revenues. The segment's EBITDA margin declined to 6.0% for the reporting quarter from 6.1% a year ago. It secured orders worth INR 330.42 billion during the quarter, up 58% on year, led by ultra-mega orders in the offshore wind business. The segment's order book was INR 1.47 trillion as on Jun. 30, with the international order book representing 97%.

 

Net revenue from the company's manufacturing and products segment grew 9% on year to INR 44.86 billion, driven by improved execution in precision engineering and systems, construction equipment and mining machinery and rubber processing machinery businesses. The segment recorded an EBITDA margin of 15.2% for the quarter, down from 17.5% reported a year ago. "The margin is reflective of change in the sales mix within the portfolio," the company said.

 

The segment reported order inflows of INR 55.35 billion during the quarter, up 74% on year. The growth in the segment's order inflow was attributable to receipt of multiple refinery equipment package orders in the heavy engineering business. Export orders accounted for 59% of the total order inflow. As of Jun. 30, the segment's order book was INR 424.76 billion, with export orders contributing 19%.

 

While the company remains confident in domestic demand, implications of extended supply chain disruptions and elevated energy prices are seen impacting its growth momentum, it said in a press release. "Against this ever-changing economic and geopolitical landscape, the company remains committed to delivering sustainable shareholder value by leveraging sector-specific technology, investing in AI, and adopting digital solutions to enhance productivity and competitiveness," it said. The company will focus on ensuring profitable execution of its order book, maintaining financial discipline, and allocating capital judiciously across targeted growth sectors. 

 

Along with the June quarter earnings, L&T's board approved the merger of its wholly-owned subsidiary, L&T Power Development Ltd., with the company. Upon the proposed scheme becoming effective, all shares of L&T Power Development held by the parent company shall be cancelled, it said. 

 

Tuesday, shares of the company closed 0.7% higher at INR 3,832 on the National Stock Exchange.  L&T announced its June quarter earnings after market hours. End

 

Edited by Saji George Titus

 

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