Larsen & Toubro reported strong results for Q2 and H1 FY26, driven by significant order inflows and improved execution. Q2 saw a 45% increase in order inflow to ₹1158 bn and a 10% rise in revenue to ₹680 bn. Strategic partnerships in renewables, green energy, and semiconductor businesses contributed to growth. The company also reached an understanding for the stake sale in Hyderabad Metro.
Key Financial Highlights
Larsen & Toubro (L&T) announced robust financial performance for Q2 and H1 FY26. Key highlights include:
- Order Inflow: ₹1158 bn, up 45% year-over-year.
- Revenue: ₹680 bn, a 10% increase year-over-year.
- Order Book: ₹6670 bn, reflecting a 31% year-over-year growth.
- Profit After Tax: ₹39 bn, a 16% increase year-over-year.
- Return on Equity: 17.2%, up 110 bps year-over-year.
Segment Performance
The company experienced growth across various segments:
- Infrastructure Projects: Reported a slight revenue decrease but an improved EBITDA margin of 6.3%.
- Energy Projects: Showed a revenue increase, driven by international projects, but a slight decrease in EBITDA margin to 7.3%.
- Hi-Tech Manufacturing: Displayed strong revenue growth and an improved EBITDA margin of 14.7%.
- IT & Technology Services: Demonstrated revenue growth, but a slight decline in EBITDA margin to 20.2%.
Order Inflow and Outlook
L&T’s order book remains strong, with international orders constituting 49%. The company anticipates continued growth, supported by a robust prospect pipeline of approximately ₹10.4 trn for the near term. This is driven by both domestic and international opportunities, particularly in Infrastructure and Energy sectors.
Strategic Initiatives
L&T is focused on strategic partnerships across Renewables, Green Energy, Defence, and Semiconductor businesses. The company also reached an in-principle understanding with the Government of Telangana for the stake sale in Hyderabad Metro, marking a significant milestone.
Source: BSE
