Larsen & Toubro’s March-quarter revenue rose on steady execution across businesses, but reported profit declined year-on-year due to the impact of an exceptional gain recorded in the previous year.

Larsen & Toubro Ltd reported a 3.1% year-on-year decline in consolidated net profit at ₹5,326 crore for the quarter ended March 31, 2026, compared with ₹5,497 crore in the corresponding quarter last year.

Revenue from operations rose 11.3% YoY to ₹82,762.2 crore, against ₹74,392 crore a year earlier. International revenues stood at ₹43,747 crore, contributing 53% of the company’s total quarterly revenue.

EBITDA rose 5% YoY to ₹8,611 crore, compared with ₹8,203 crore in Q4FY25. However, EBITDA margin contracted to 10.4% from 11% a year earlier.

Profit hit by base effect

The fall in reported profit came despite higher revenue and EBITDA. L&T said recurring PAT for the quarter stood at ₹5,289 crore, up 5% YoY, while total consolidated PAT declined 3% to ₹5,326 crore. The company attributed the year-on-year decline in consolidated PAT primarily to an exceptional gain of ₹475 crore recorded in the previous year.

In its analyst presentation, L&T said recurring PAT growth reflected higher activity levels and treasury management, partly offset by losses from joint ventures. It also said Q4FY26 exceptional items included part reversal of labour code provision, while Q4FY25 included partial reversal of an earlier impairment.

Order book hits record high

L&T’s order inflow for Q4FY26 stood at ₹89,772 crore, with international orders at ₹59,994 crore, or 67% of the total quarterly order inflow. The company said it secured several high-value orders during the quarter across commercial and residential buildings, roads and runways, urban transport, transmission and distribution, and hydrocarbon onshore businesses.

For FY26, group order inflows rose 22% YoY to a record ₹4,35,590 crore, while the consolidated order book stood at an all-time high of ₹7,40,327 crore, up 28% over March 2025. International orders made up 52% of the overall order book.

Commenting on the results, L&T Chairman and Managing Director S.N. Subrahmanyan said, “The year concluded on a strong note, supported by good financial performance across segments. Order inflow for the year exceeded a record ₹4 lakh crore — a clear reflection of our strategy, built on a strong domestic base complemented by a significant international presence, enabling the Company to exploit global opportunities.”

Segment performance

The company said revenue growth in the quarter was driven by Hi-Tech Manufacturing, Energy and Financial Services, partly offset by subdued progress in Infrastructure Projects. The analyst presentation showed Hi-Tech Manufacturing revenue rising 45% YoY, Energy revenue growing 36%, and Financial Services income from operations rising 22% in Q4FY26.

L&T said Infrastructure Projects saw softer revenue growth due to subdued progress in domestic and international projects, while Energy Projects benefited from execution progress on a large order book, although margins were impacted by cost overruns and close-out costs in legacy projects.

Lakshya’31 and strategic focus

Subrahmanyan said L&T had achieved most of the targets set under its Lakshya’26 plan, including order book, revenue and exits from non-core businesses.

He said the company would now begin its next five-year journey under Lakshya’31, aimed at making the organisation future-ready through accelerated adoption of AI and digital technologies and investments in data centres, green energy, industrial electronics and semiconductor technologies.

He added that L&T’s diversified portfolio positions it to capture both near-term and long-term opportunities, while its growing international presence underlines its ability to compete globally.

Dividend and CFO appointment

The board recommended a final dividend of ₹38 per share of face value ₹2 each for FY26, subject to shareholder approval. L&T has fixed May 22, 2026 as the record date for determining shareholder entitlement.

The board also approved the appointment of P. Ramakrishnan as chief financial officer and key managerial personnel of the company with effect from July 1, 2026. Current CFO R. Shankar Raman will cease to be CFO from the close of business hours on June 30, 2026, while continuing as President and Whole-time Director – Finance, subject to approvals.

Shares of L&T ended 0.63% lower at ₹4,075 apiece on the NSE on Tuesday. The stock has surged over 22% in the past year, outperforming the benchmark Nifty 50 index that has fallen nearly 2% during the same period.