This premier Indian infrastructure and technology conglomerate plays a significant role across EPC projects, hi-tech manufacturing, and a range of service sectors, making the company worth watching closely.
We’re talking about Larsen & Toubro (L&T), which stands out as a major technology, engineering, construction, manufacturing and financial services conglomerate with global operations. In this article, we’ll take a closer look at L&T’s financial performance and key ratios, management outlook, segment-wise revenue & order book details, and more.
At 10:46 a.m., shares of Larsen & Toubro Limited were trading in the red at Rs. 3,614.05, down by around 0.4 percent, as against its previous closing price of Rs. 3,630.05, with a market cap of Rs. 4.97 lakh crores. The stock has delivered positive returns of nearly 3 percent over a one-year period, as well as around 1 percent returns in the last month.
Order Book Overview – Q1 FY26
In Q1 FY26, Larsen & Toubro’s order book reached Rs. 6,12,761 crores, reflecting around 25 percent YoY from Rs. 4,90,881 crores in Q1 FY25. International orders comprised a significant 46 percent of the total order book. The management also indicated a healthy prospect pipeline of nearly Rs. 15 trillion for the remaining nine months of FY26.
Among segments, the Infrastructure Projects division led with Rs. 3,70,390 crores, accounting for 61 percent of the order book. This was followed by Energy Projects at Rs. 1,86,401 crores (30 percent), Hi-Tech Manufacturing at Rs. 39,162 crores (6 percent), and Other segments at Rs. 16,808 crores (3 percent).
In terms of order inflow, the company secured fresh orders worth Rs. 94,453 crores during Q1 FY26. This robust inflow was primarily driven by the Infrastructure and CarbonLite Solutions businesses.
Financials & Segment Performance
In Q1 FY26, L&T reported a consolidated revenue from operations of Rs. 63,679 crores, a growth of around 16 percent YoY but a decline of 14 percent QoQ. Net profit for the quarter stood at Rs. 4,318 crores, representing a rise of nearly 25 percent YoY but a decline of 30 percent QoQ.
The company’s debt-to-equity ratio stood at 1.13, and its current ratio of 1.21. Net profit margin was at 6.78 percent, while the operating margin was reported at 9.92 percent.
Total segment revenue for the quarter stood at Rs. 64,279.4 crore. The Infrastructure Projects segment was the largest contributor, generating Rs. 29,031.4 crore, accounting for 45 percent of the total revenue. The Energy Projects business followed with Rs. 12,474.3 crore (19.4 percent), while the IT & Technology Services segment reported Rs. 12,679 crore (19.7 percent) in revenue.
The Hi-Tech Manufacturing segment contributed Rs. 3,362 crore (5.2 percent), and the Financial Services business generated Rs. 3,971 crore (6.2 percent). Revenue from Development Projects stood at Rs. 1,242.4 crore (2 percent), and the Other segment added Rs. 1,519.2 crore (2.4 percent) to the total.
Infrastructure Projects Segment: Order inflow was supported by strong international momentum, with a robust pipeline of ~Rs. 8 trillion projected over the next nine months. Segment revenue and margins were largely influenced by the stage of execution across various sub-segments.
Energy Projects Segment: Hydrocarbon business saw a healthy order inflow, driven by multiple onshore & offshore packages. The CarbonLite Solutions (CLS) segment also benefited from the receipt of several BTG packages. Revenue growth in Hydrocarbon was supported by an acceleration in project execution. Segment EBITDA margin was primarily affected by a higher share of revenue from competitively priced jobs in Hydrocarbon.
Hi-Tech Manufacturing Segment: Heavy Engineering order inflow was impacted by project deferrals, while PES saw a decline due to a high base. Despite this, revenue growth was strong across both Heavy Engineering and PES, driven by improved execution. Margins in PES remained lower, as key projects were still in their early phases, while margin improvements in Heavy Engineering were aided by operational efficiencies.
IT & Technology Services Segment: LTIMindtree revenue growth was driven by Manufacturing & Resources and BFSI verticals. Meanwhile, L&T Technology Services (LTTS) reported revenue growth led by the Technology and Sustainability segments. Variations in the segment margin were attributed to costs associated with newly incubated businesses of digital platforms, data centers, and semiconductor design.
Others Segment: This segment mainly includes the Realty and Industrial Machinery & Products businesses. Revenue growth was largely supported by an increase in residential unit handovers within the Realty business. However, a decline in machinery sales impacted the performance of the Industrial Machinery & Products division. Higher EBITDA contribution from Realty and a favourable sales mix in Industrial Machinery & Products aid margin improvement.
Management Guidance
The company’s guidance for FY26 remains unchanged. L&T expects group order inflows to grow by 10 percent and group revenues to increase by 15 percent for FY26. The Net Working Capital-to-Revenue ratio is projected to be maintained at 12 percent by March 2026. For the Projects and Manufacturing portfolio, the company continues to target an EBITDA margin in the range of 8.3 percent to 8.5 percent for the full year.
Written by Shivani Singh
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