L&T Q2 results: Net profit rises 15.6% to ₹3.9K cr, revenue up 10.4%

Firm received new orders worth ₹1.15 trillion in September quarter, up 44.64% Y-o-Y

Engineering and construction major Larsen & Toubro (L&T) on Wednesday reported a 15.6 per cent year-on-year (Y-o-Y) rise in net profit for the second quarter (Q2) of 2025-26 (FY26) to ₹3,926 crore, driven by higher revenue. Revenue from operations during the quarter increased 10.4 per cent to ₹67,984 crore.

 

S. N. Subrahmanyan, chairperson and managing director, said the company delivered a well-rounded performance across all key financial metrics.

 

“Our ability to repeatedly secure large orders across segments and geographies is a true testimony to our leadership in the engineering, procurement, and construction space. The consistent execution across a diverse portfolio highlights our strength in navigating both local and global challenges,” he said.

 

 

However, profit missed the Bloomberg analysts’ estimate of ₹4,004.7 crore, and revenue fell short of the projected ₹70,478.1 crore.

 

L&T’s other income during the July–September quarter rose 25.7 per cent to ₹1,384.28 crore.

 

Earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at ₹6,806 crore, up 7 per cent Y-o-Y. The Ebitda margin was 10 per cent, compared with 10.3 per cent in the same quarter last year.

 

R Shankar Raman, whole-time director and chief financial officer, said the quarter presented challenges amid volatile domestic and global conditions.

 

“The quarter and indeed the half year were by no means easy. Several moving parts affected both domestic and international markets. Amid this turbulence, we stayed focused, consolidated our market presence, strengthened partnerships, and remained competitive. It’s these efforts that helped us perform consistently, quarter after quarter,” he said.

 

Total expenses during the quarter rose 10.4 per cent to ₹63,031.7 crore.

 

Infra arm leads ₹1.15 trillion order haul

 

L&T received new orders worth ₹1.15 trillion during the quarter, up 44.6 per cent. International orders stood at ₹75,561 crore, accounting for 65 per cent of the total inflow. Domestic orders in Q2FY26 rose 34 per cent to about ₹40,000 crore.

 

“For domestic orders, the bulk of the heavy lifting came from the infrastructure segment,” Raman said.

 

The consolidated order book stood at ₹6.67 trillion at the end of September 2025, up 30.7 per cent Y-o-Y. International orders made up about 49 per cent of the total.

 

The company said global growth continues to be constrained by rising trade protectionism and regional conflicts.

 

Global gross domestic product growth is projected lower at 3 per cent, weighed down by policy uncertainty, trade frictions, and supply-chain disruptions.

 

It added that the Gulf Cooperation Council economies are likely to remain stable, supported by a rebound in oil output, steady inflation, and continued investment in non-oil sectors.

 

“Against this economic backdrop, the company has the capability and flexibility to rebalance its strategy and benefit from the evolving business environment. We remain focused on emerging opportunities, investing in new businesses, and driving sustainable long-term growth for stakeholders,” L&T said.

 

Sequentially, revenue rose 6.8 per cent and profit increased 8.5 per cent. On Wednesday, L&T’s shares closed at ₹3,951.7 on the BSE.

 

In the first half (H1) of FY26, revenue grew 12.8 per cent to ₹1.31 trillion, while profit rose 22 per cent to ₹7,543.3 crore. The company secured orders worth ₹2.1 trillion, a 39 per cent Y-o-Y increase. International orders at ₹1.24 trillion accounted for 59 per cent of total inflows.

 

“In H1FY26, international orders grew 51 per cent, while domestic orders increased 26 per cent. Nearly 51 per cent of the total order inflow came from the private sector — a welcome relief from the subdued private-sector activity last year,” Raman said.

 

L&T’s debt-to-equity ratio stood at 1.09 as of September 30, 2025, compared with 1.17 a year earlier.