Larsen & Toubro (L&T) has released its Integrated Annual Report for FY 2025-26, highlighting a year of record order inflows and steady financial progress. The company achieved 12% revenue growth, reaching ₹2.86 lakh crore, and a robust 18% growth in recurring profit after tax. L&T continues to lead in core engineering and construction, while expanding its footprint in emerging tech-led sectors and sustainable green infrastructure.
Strong Financial and Operational Performance
For the financial year 2025-26, L&T reported a record-breaking order book size of ₹7.40 lakh crore, reflecting a 28% year-on-year growth. International orders played a significant role, now accounting for 52% of the total order book. The company’s revenue for the year stood at ₹2.86 lakh crore, with a recurring profit after tax of ₹17,238 crore.
Strategic Business Highlights
L&T has successfully executed its Lakshya 2026 strategic plan and has now initiated the next five-year growth trajectory, Lakshya 2031. Key highlights from the company’s diverse portfolio include:
- Infrastructure & Construction: Continued leadership with significant projects like the Navi Mumbai International Airport and Patna Medical College and Hospital.
- Energy & Sustainability: ‘Green Business’ remains a strategic focus, now contributing 51% of standalone revenues, driven by investments in renewable energy and green hydrogen infrastructure.
- Technology & Services: Rebranding of IT services to LTM Limited as an AI-centric partner, alongside growth in L&T Technology Services and L&T Finance.
- Manufacturing: Heavy Engineering successfully manufactured high-end reactors for international clients, emphasizing the ‘Aatmanirbharta’ vision.
Future-Ready Technology and ESG Commitment
L&T continues to integrate advanced technologies like AI, IoT, and GenAI into project life-cycles, having digitally connected over 17,000 assets pan-L&T. Furthermore, the company is deeply committed to ESG goals, with a target of achieving Carbon Neutrality by 2040 and Water Neutrality by 2035. During the year, L&T planted over 1 million saplings and positively impacted 1.9 million lives through its CSR initiatives.
Strategic Capital Allocation
The company maintains a disciplined approach to capital allocation and debt management. As a result of strategic divestments and efficient working capital management, the Group Net Debt: Equity ratio improved to 0.35:1 in FY 2025-26 from 0.6:1 in the previous year. The Board has recommended a final dividend of ₹38 per share, reflecting its ongoing focus on delivering value to shareholders.
Source: BSE
