Larsen & Toubro (L&T) has released its Integrated Annual Report for FY 2025-26, highlighting a year of steady progress despite global geopolitical challenges. The company achieved record order inflows of ₹4.36 lakh crore, a 22% growth, and reached an all-time high order book of ₹7.40 lakh crore. With a 12% revenue growth to ₹2.86 lakh crore and an 18% increase in recurring PAT, L&T continues to deliver consistent performance through technological innovation.
Financial and Operational Performance
During the financial year 2025-26, the L&T Group demonstrated resilient performance. Key financial highlights include a group revenue of ₹2.86 lakh crore, representing a 12% growth. Recurring Profit After Tax (PAT) stood at ₹17,238 crore, an 18% increase over the previous year. The company’s balance sheet has significantly strengthened, with the Net Debt : Equity ratio improving from 0.6:1 in 2024-25 to 0.35:1 in 2025-26. The Board of Directors has recommended a final dividend of ₹38 per share.
Strategic Growth and Business Verticals
L&T has successfully executed its Lakshya 2026 plan and is now transitioning to Lakshya 2031, its next 5-year strategic growth plan. The group’s portfolio remains well-diversified, with international orders now contributing 52% of the order book. Key operational highlights include:
- Infrastructure & Construction: Continued leadership in large-scale EPC projects, with major inaugurations like the Navi Mumbai International Airport Phase 1.
- Energy: Focused on conventional and green energy projects, with a record order book driven by demand in the GCC region.
- Hi-Tech Manufacturing: Pioneer in import substitution, including the successful production of India’s first industry-manufactured PSLV rocket.
- Services (IT & Tech): Rebranding of LTIMindtree to LTM Limited as an AI-centric ‘Business Creativity Partner’.
Commitment to Technology and ESG
Technology continues to serve as an accelerator for the company, with 17,000+ assets now digitally connected to a central IoT platform. The company has developed over 100 proprietary algorithms, 34 of which are fully operational. Furthermore, L&T has embedded ESG principles into its strategy, with ‘Green Business’ accounting for 51% of standalone revenues. Notable sustainability achievements include the planting of over 1 million saplings and securing India’s first listed sustainability-linked bond worth ₹500 crore.
Outlook for FY 2026-27
Looking ahead, L&T anticipates sustained demand across infrastructure, hydrocarbon, and renewable energy sectors in both domestic and international markets. The company remains focused on cash conservation, working capital management, and a selective approach to project bidding to ensure long-term value creation. With a strong order backlog and a pivot towards future-ready sectors like semiconductor technology and green hydrogen, the company is well-positioned for consistent growth.
Source: BSE
