Summary of this article
L&T shares jumped 4.5% after Q1 FY26 profit rose 30% YoY.
Order inflows came in at Rs 94,453 crore, of which 52% came from international markets.
Revenue grew 16% YoY, while EBITDA margin slipped to 9.9%.
Brokerages say above estimates Q1 earnings, see strong order pipeline.
Larsen & Toubro (L&T) share price jumped as much as 4.5 per cent in early trade on July 30 to hit an intraday high of Rs 3,652.70 per share on the NSE. The rally came after the engineering major posted strong quarterly earnings for the period ended June 30, 2025 (Q1 FY26). The stock was among the top gainers on the benchmark index, as investors cheered the company’s strong earnings beat despite a minor dip in profitability margins.
The company reported a 30 per cent year-on-year (YoY) jump in consolidated net profit at Rs 3,617 crore. Revenue from operations rose 16 per cent YoY to Rs 63,679 crore.
Earnings before interests, taxes, depreciation, and amortisation (Ebitda) rose 13 per cent YoY to Rs 6,318 crore, though margins reduced slightly to 9.9 per cent from 10.2 per cent in the same quarter last year.
L&T Order Book FY26
L&T received order inflows worth Rs 94,453 crore at the group level in Q1 FY26, a 33 per cent YoY growth on the back of strong demand across key business segments.
The company secured orders in Thermal BTG, Renewables, Power Transmission & Distribution, Hydel, Non-Ferrous Metals, Hydrocarbon (offshore and onshore), and commercial and residential projects.
International orders came in at Rs 48,675 crore, contributing 52 per cent to the total order inflow. As of June 30, 2025, L&T’s consolidated order book stood at Rs 6,12,761 crore, up 6 per cent from March 2025. Of the total, international projects make up 46 per cent.
"At a group level, we registered once again, the highest order inflow for Q1 ever," said SN Subrahmanyan, Chairman and Managing Director, L&T.
What Brokerages Say
Motilal Oswal said L&T delivered better-than-expected revenue and profit for Q1 FY26, supported by strong order inflows and faster project execution, particularly in international markets. The brokerage said that the company’s core engineering and construction (E&C) business outperformed on new order wins, led by large contracts in the energy and infrastructure segments.
It also noted that L&T maintained healthy working capital levels and showed improvement in return on equity. However, margins in the core E&C business remained flat despite expectations of gradual improvement, the brokerage said.
Motilal Oswal also pointed out that the company’s pipeline of potential orders has grown significantly, which suggests strong prospects for future inflows, especially in the Gulf region where L&T aims to expand in renewable energy, clean energy, and transmission projects.
JM Financial too said that L&T surprised on the upside in Q1 FY26 with its order inflows, which according to the brokerage came in stronger than expected.
The brokerage also noted that L&T’s revenue and operating profit were broadly in line with forecasts, while margins stayed largely stable despite some pressure in a few segments.
