Larsen & Toubro (L&T) has reported a robust performance for Q4 FY26 and the full fiscal year, delivering sustained growth and a solid balance sheet. The company achieved a record annual order inflow of ₹4,356 billion, representing a 22% year-on-year growth. Revenue for the year reached ₹2,859 billion, an increase of 12%, while Recurring PAT grew by 18% to ₹172 billion, reflecting strong execution momentum across its diverse business segments.
Financial Performance Highlights
L&T concluded FY26 with significant financial milestones. The company’s annual revenue grew by 12% to ₹2,859 billion, supported by strong performance in its Hi-Tech Manufacturing, Energy, and Financial Services segments. Recurring PAT for the year stood at ₹172 billion, marking an 18% year-on-year growth. Notably, the Net Working Capital to Revenue ratio saw a 690bps improvement, reaching a multi-year low of 4.1%.
Record Order Inflow and Order Book
The company achieved another year of record order inflows, totaling ₹4,356 billion (a 22% YoY increase), bolstered by multiple ‘Ultra Mega’ orders valued at over ₹150 billion each. This has resulted in a robust order book of ₹7,403 billion, which grew by 28% compared to the previous year. International orders currently constitute 52% of the total order book, indicating a healthy global footprint.
Segment Analysis
- Infrastructure Projects: Revenue grew by 3% for the full year, with margins seeing an uptick to 6.9%.
- Energy Projects: Demonstrated strong momentum with 35% revenue growth, supported by significant execution progress on a large order book.
- Hi-Tech Manufacturing: Achieved strong revenue growth of 46%, driven by nuclear equipment orders and solid execution in Precision Engineering & Systems.
- IT & Technology Services: Delivered 12% revenue growth, with operational efficiencies driving consistent margins.
Strategic Outlook: Lakshya 31
L&T has unveiled its Lakshya 31 strategic plan, focusing on ‘Strengthening the Core’ and ‘TECHing the LEAP’. The company targets a 10-12% CAGR in order inflows and 12-15% CAGR in revenue through FY31. Strategic focus areas include scaling new growth engines like Data Centers, Green Hydrogen, Semiconductor Design, and Electronic Products Manufacturing, while maintaining capital efficiency and sustainable returns for shareholders.
Divestments and Balance Sheet Strength
L&T has signed Sale and Purchase Agreements (SPAs) for the divestment of Nabha Power and Hyderabad Metro, with completion expected by June 30, 2026. These assets have been classified as ‘Held for Sale’, reflecting the company’s commitment to unlocking value and focusing on its core engineering and technology businesses.
Source: BSE
