Larsen & Toubro (LT) Q4 25/26 earnings summary

Executive summary

• Achieved record order inflows of ₹4,356 bn (up 22% YoY), with international orders comprising 52%–58% of the order book.

• Revenue grew 12% YoY to ₹2,859 bn, driven by strong performance in Hi-Tech Manufacturing, Energy, and Financial Services.

• Recurring PAT for FY26 was ₹172 bn, up 18% YoY; reported PAT was ₹161 bn, impacted by a one-time labour code provision.

• Strategic exits from Nabha Power and Hyderabad Metro Rail; assets classified as held for sale.

• ESG initiatives advanced, including India's first ESG bond issuance and upgraded MSCI rating.

Financial highlights

• Order book reached ₹7,403 bn as of March 2026, up 28% YoY; international revenues comprised 53%–54%.

• EBITDA margin for FY26 at 10.2%, stable YoY; Q4 margin at 10.4%.

• Net working capital to revenue ratio improved to 4.1%, a multi-year low.

• Cash flow from operations (excluding Financial Services) increased 87% YoY to ₹355 bn.

• Debt-equity ratio improved to 0.95; net debt/equity at 0.35.

Outlook and guidance

• FY27 guidance: 10%–12% growth in order inflows and revenue, with a softer H1 due to supply chain disruptions.

• Five-year Lakshya 2031 plan targets 10%–12% order inflow CAGR, 12%–15% revenue CAGR, and 16%–17% ROE.

• Strategic focus on Data Centers, Green Hydrogen, and Semiconductor Design.

• Working capital expected to normalize to around 10% in FY27.

• Margins for Projects, Products & Manufacturing expected to remain stable at 7.8% in FY27.