Larsen & Toubro Limited Q3 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Mixed
Executive Summary
L&T Q3 FY26: Revenue ₹71,450 Cr (vs ₹64,668 Cr YoY), PAT ₹3,215 Cr (vs ₹3,359 Cr YoY)
For Q3 FY26 Larsen & Toubro reported consolidated revenue from operations of ₹71,449.70 Cr, up from ₹64,667.78 Cr in Q3 FY25, driven by international execution and P&M portfolio traction. Recurring PAT for the quarter was ₹4,406 Cr, up from ₹3,359 Cr YoY, while consolidated PAT was ₹3,215 Cr, down from ₹3,359 Cr YoY due to a one‑time exceptional provision. The quarter featured a record consolidated order inflow of ₹135,581 Cr and an order book of ₹733,161 Cr as on December 31, 2025. Management reiterated optimism on demand, citing policy tailwinds and sustained capex momentum.Revenue (Consolidated, Q3 FY26)
₹71,449.70 Crvs ₹64,667.78 Cr in Q3 FY25
Recurring PAT (Q3 FY26)
₹4,406 Crvs ₹3,359 Cr in Q3 FY25
Consolidated PAT (Q3 FY26)
₹3,215 Crvs ₹3,359 Cr in Q3 FY25
EBITDA (Q3 FY26)
₹7,417 Crvs ₹6,255 Cr in Q3 FY25
Order Inflow (Q3 FY26)
₹135,581 Crvs ₹1,16,036 Cr in Q3 FY25
Order Book (as on Dec 31, 2025)
₹733,161 Crvs
Finance costs (Q3 FY26)
₹625.13 Crvs ₹843 Cr in Q3 FY25
Key Highlights
10
Group secured a record consolidated order inflow of ₹135,581 Cr in Q3 FY26, a year‑on‑year increase (Q3 FY25: ₹1,16,036 Cr), with international orders ₹66,848 Cr contributing 49% of inflow
Consolidated order book stood at ₹733,161 Cr as on December 31, 2025, which the company states is ~30% higher than December 2024
The company recognised a one‑time material provision towards employee benefits of ₹1,191 Cr (net of tax & NCI) classified under Exceptional Items, which reduced consolidated PAT in Q3 FY26
EBITDA improved to ₹7,417 Cr in Q3 FY26 from ₹6,255 Cr in Q3 FY25, with Group EBITDA margin at 10.4% in Q3 FY26 (Q3 FY25: 9.7%), attributed to operational efficiency and cost management
Energy Projects customer revenues were ₹12,726 Cr in Q3 FY26 (vs ₹11,047 Cr in Q3 FY25) but segment EBITDA margin compressed to 5.9% from 8.3% YoY due to cost pressures in onshore hydrocarbon projects
Infrastructure Projects customer revenues were ₹33,700 Cr in Q3 FY26 (vs ₹32,134 Cr in Q3 FY25) with segment EBITDA margin improving to 6.1% from 5.5% YoY due to international project execution
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Key Highlights
10
Group secured a record consolidated order inflow of ₹135,581 Cr in Q3 FY26, a year‑on‑year increase (Q3 FY25: ₹1,16,036 Cr), with international orders ₹66,848 Cr contributing 49% of inflow
Consolidated order book stood at ₹733,161 Cr as on December 31, 2025, which the company states is ~30% higher than December 2024
The company recognised a one‑time material provision towards employee benefits of ₹1,191 Cr (net of tax & NCI) classified under Exceptional Items, which reduced consolidated PAT in Q3 FY26
EBITDA improved to ₹7,417 Cr in Q3 FY26 from ₹6,255 Cr in Q3 FY25, with Group EBITDA margin at 10.4% in Q3 FY26 (Q3 FY25: 9.7%), attributed to operational efficiency and cost management
Energy Projects customer revenues were ₹12,726 Cr in Q3 FY26 (vs ₹11,047 Cr in Q3 FY25) but segment EBITDA margin compressed to 5.9% from 8.3% YoY due to cost pressures in onshore hydrocarbon projects
Infrastructure Projects customer revenues were ₹33,700 Cr in Q3 FY26 (vs ₹32,134 Cr in Q3 FY25) with segment EBITDA margin improving to 6.1% from 5.5% YoY due to international project execution
Hi‑Tech Manufacturing reported customer revenues of ₹3,267 Cr in Q3 FY26 (vs ₹2,433 Cr in Q3 FY25) while its order inflow fell to ₹2,168 Cr in Q3 FY26 from ₹8,423 Cr in Q3 FY25 (74% decline) reflecting a high base in PES last year
IT & Technology Services delivered customer revenues of ₹13,526 Cr in Q3 FY26 (vs ₹12,061 Cr in Q3 FY25) and improved EBITDA margin to 19.7% from 18.7% YoY, driven by operational efficiencies and forex tailwinds
Financial Services reported income from operations of ₹4,477 Cr in Q3 FY26 (vs ₹3,881 Cr in Q3 FY25) with total loan book at ₹114,285 Cr as of Dec 31, 2025 (vs ₹95,120 Cr Dec 2024), a 20% reported increase
Group finance costs (excluding financial services) reduced to ₹625.13 Cr in Q3 FY26 from ₹843 Cr in Q3 FY25, supporting improved net interest metrics
Guidance & Outlook
4
Management expects pro‑growth momentum to be maintained through sustained capex and anticipates supportive policy thrusts (Union Budget 2026–27) to strengthen domestic manufacturing and digital/AI ecosystem, per chairman commentary
Company remains focused on expanding geographical footprint and scaling Projects & Manufacturing execution while driving cost and cash‑flow management
Management highlighted GCC and Middle East as key geographies for growth due to large AI infrastructure, data center and urban projects opportunities
The company’s stated strategy includes strengthening services businesses (IT & TS, Financial Services) to enhance returns, reflecting continued investment and resource allocation to these higher‑margin areas
Risks & Concerns
6
Exceptional one‑time labour code provision of ₹1,191 Cr (net of tax & NCI) in Q3 FY26 reduced consolidated PAT and signals potential further regulatory or actuarial impacts on employee benefit liabilities
Energy Projects segment margin compression from 8.3% in Q3 FY25 to 5.9% in Q3 FY26 indicates project‑level cost pressures that could weigh on near‑term profitability
Hi‑Tech Manufacturing order inflow declined sharply to ₹2,168 Cr in Q3 FY26 from ₹8,423 Cr in Q3 FY25 (high base effect), creating near‑term revenue visibility risk for that segment
About 49% of order inflow in Q3 FY26 and 49% of order book are international, exposing execution and FX risk tied to GCC and other overseas markets
Although finance costs declined QoQ/YoY, total debt ratios remain material (group total debt to total assets 0.32 in Q3 FY26) and large working capital for EPC businesses could pressure liquidity if execution slows
Development Projects and certain domestic water projects showed subdued performance and lower PLF (Nabha Thermal), indicating operational variability in infra/energy assets
AI-generated analysis. May contain inaccuracies — verify against original sources.