Larsen & Toubro’s stock gained 4% following the announcement of its Q1 FY26 results. With a 30% YoY rise in net profit and record order inflows, the company’s execution strength and international exposure continue to support its strong market position.
Larsen & Toubro Limited, headquartered in Mumbai, Maharashtra, is a leading Indian multinational engaged in engineering, construction, manufacturing, and technology services. Operating across diverse sectors such as infrastructure, power, defense, and heavy engineering, L&T has a significant footprint both in India and globally.
On July 29, 2025, shares of L&T surged by 4% in early trade, following the release of its financial results for the first quarter of fiscal year 2025–26. The company reported a consolidated net profit of ₹3,617.19 crore, marking a robust 29.8% increase compared to ₹2,785.72 crore in the corresponding period last year.
Revenue for the quarter stood at ₹63,679 crore, up 16% year-on-year, driven primarily by strong execution in its core Projects & Manufacturing business. International operations contributed ₹32,994 crore, accounting for 52% of total revenue, underscoring L&T’s growing global presence.
The company’s EBITDA rose 13% YoY to ₹6,318 crore, although margins moderated slightly to 9.9% from 10.2%. The dip in margins was attributed to the evolving business mix and increased international execution, which typically involves tighter profitability.
L&T reported total order inflows of ₹94,453 crore during Q1 FY26, registering a 33% increase over the previous year. These inflows spanned key verticals such as thermal and renewable power, power transmission, hydropower, hydrocarbons, and infrastructure construction across both commercial and residential sectors. Notably, engineering and construction (E&C) orders led the momentum with a significant contribution.
The performance reaffirms L&T’s strategic emphasis on scaling execution across global projects, particularly in the Middle East and Southeast Asia. The company continues to maintain healthy operating metrics, including lower working capital levels and steady return on equity, now at 17%.
With a strong order book and visible revenue pipeline, L&T appears well-positioned to deliver on its FY26 guidance. The company’s business outlook remains buoyant, supported by infrastructure demand, rising capital expenditure cycles, and stable execution capabilities across its diversified portfolio.
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