L&T Q3FY26 results: Profit falls 4% to ₹3,215 crore on Labour Codes' costs

Engineering and construction major Larsen & Toubro (L&T) on Wednesday reported a consolidated net profit of ₹3,215 crore in the third quarter of the financial year 2025-26 (Q3FY26), down 4.3 per cent from ₹3358.84 crore during the same period last year. On a sequential basis, net profit declined by 18.1 per cent from ₹3926.09 crore.

 

The company attributed the decline in profit to one-time costs arising from the implementation of the new Labour codes. "The company posted a recurring profit after tax (PAT) of ₹4,406 crore for the quarter ended December 31, 2025, registering an year-on-year (Y-o-Y) growth of 31 per cent. The total consolidated PAT for the quarter at ₹3,215 crore includes a one-time material provision of ₹1,191 crore towards employee benefits arising from the implementation of the new Labour codes," the company said in a BSE filing. 

 

L&T's revenue from operations for the quarter rose 10.49 per cent Y-o-Y to ₹71,449.7 crore, from ₹64,667.78 crore in Q3FY25. Sequentially, revenue increased 5.1 per cent from ₹67,983.53 crore.

 

L&T Q3 order book

The company said that its consolidated order book as on December 31, 2025, stood at ₹733,161 crore, reflecting a 30 per cent growth Y-o-Y. International orders constituted 49 per cent of the overall order book. 

 

"We have witnessed another landmark quarter for the Company as we posted our highest ever quarterly order inflow. For the first time, the quarterly order inflow in our Projects & Manufacturing (P&M) portfolio has exceeded the ₹1 trillion mark - a clear reflection of our capabilities and the inherent strength of our business model," said S N Subrahmanyan, chairman and managing director of L&T.

 

"Consequently, the order book of the company has surpassed the ₹7 trillion mark. This growth is driven by our unwavering commitment to provide sustainable execution, leveraging cutting-edge technology and seamlessly integrating ESG principles into our business framework," he added.

 

L&T Q3 financial highlights

L&T reported an Ebitda of ₹7,417 crore during the quarter, up 19 per cent Y-o-Y. Ebitda margin stood at 10.4 per cent, up from 9.7 per cent during the same quarter last year. 

Shares of L&T closed largely flat at ₹3793.65 apiece on the BSE on Wednesday, ahead of the result announcement.