L&T Delivers 16% Profit Growth in Q2 Amid Mixed Performance

The second quarter of FY2026 brought steady progress for the engineering and infrastructure major, which reported a 16% year-on-year increase in net profit. While revenue growth was moderate, the company witnessed strong order inflows, driven by both domestic and international projects. 

The mixed performance reflects balanced growth across multiple business segments, with a continued focus on global expansion and project diversification.

Quarterly Performance Overview

For the quarter ended September 30, 2025, the company’s consolidated net profit rose 15.6% to ₹3,926 crore, compared to ₹3,395 crore in the same period last year. However, the result was marginally below market expectations. 

Revenue grew by 10.4% year-on-year to ₹67,983 crore, short of the projected ₹69,950 crore. Operating profit, represented by EBITDA, stood at ₹6,806.5 crore, marking a 7% annual increase, with margins remaining steady at around 10%.

Strong Order Momentum Boosts Outlook

A key highlight of the quarter was the 45% surge in order inflows, which reached ₹115,784 crore. The growth was supported by robust demand across Public Spaces, Data Centres, Metro, Hydel, Transmission & Distribution, Renewables, and Hydrocarbon sectors. International orders accounted for 65% of total inflows, underlining the company’s expanding global footprint.

As of September 30, 2025, the consolidated order book stood at ₹667,047 crore, up 15% since March 2025. International projects contributed 49% to the total, signalling the growing importance of overseas business to the group’s future revenue mix.

Segmental Highlights

• The Infrastructure Projects segment secured ₹52,686 crore in orders, reflecting 6% growth despite challenging conditions.
• The Energy Projects segment delivered a strong performance with ₹38,156 crore worth of orders, showing a significant rise from the previous year.
• The Hi-Tech Manufacturing segment saw order inflows drop to ₹2,582 crore due to deferred projects, but revenues rose 33% year-on-year on improved execution.
• The IT & Technology Services division maintained steady growth, recording ₹13,274 crore in revenues, up 13% year-on-year, with 92% of earnings from international markets.
• The Financial Services segment recorded operating income of ₹4,166 crore, reflecting 9% growth.

Market Performance

On the market front, Larsen & Toubro (L&T) Share Price closed at ₹3,951.70 on October 29, 2025, down by 0.53% on the BSE following the quarterly announcement. The company’s market capitalisation stood at ₹5,44,452 crore. 

Over the past year, Larsen & Toubro Ltd’s share price has moved between ₹4,017 and ₹2,965, showcasing consistent investor interest. The stock currently trades at a P/E ratio of 33.9, with a book value of ₹737 per share and a dividend yield of 0.86%.

Read More:L&T Wins Large Power Transmission and Distribution Contracts in Saudi Arabia

Conclusion

The quarterly results reflect a blend of stable financial performance and strong operational momentum. Solid order inflows, a balanced business mix, and healthy international exposure point towards sustained growth potential in the coming quarters. 

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