🏢 Introduction
India’s infrastructure giant Larsen & Toubro Ltd (L&T) announced its Q2 FY2025–26 financial results, delivering another quarter of strong revenue growth, record order inflows, and healthy margins.
The company’s results reflect its solid position in the engineering, construction, manufacturing, and IT services segments, driven by sustained infrastructure demand in India and strong project execution both domestically and internationally.
In this article, we break down L&T’s Q2 FY2025–26 results, comparing them with Q1 FY2025–26 and Q2 FY2024–25, along with insights from management on the company’s strategic outlook for the rest of the fiscal year.
📊 L&T Financial Performance Summary
| Particulars (₹ in crore) | Q2 FY2025–26 | Q1 FY2025–26 | Q2 FY2024–25 |
|---|---|---|---|
| Revenue from Operations | 57,255 | 54,620 | 51,024 |
| Net Profit (PAT) | 3,965 | 3,422 | 3,222 |
| EBITDA | 6,925 | 6,247 | 5,798 |
| EBITDA Margin (%) | 12.1% | 11.4% | 11.3% |
| Order Inflow | ₹76,800 cr | ₹62,500 cr | ₹65,300 cr |
| Order Book (End of Q2) | ₹4.82 lakh cr | ₹4.62 lakh cr | ₹4.12 lakh cr |
Source: Company filings, BSE release, and management commentary
💹 Revenue and Growth Overview
L&T reported a consolidated revenue of ₹57,255 crore for Q2 FY2025–26, marking a 12.2% year-on-year increase and 4.8% sequential growth over Q1 FY2025–26.
The growth was primarily led by:
Strong execution of large-scale infrastructure and power projects in India and the Middle East.
Steady contribution from the IT & Technology Services (L&T Technology Services, LTI Mindtree) segment.
Improved performance in the manufacturing and hydrocarbon business.
The company stated that public sector investments in roads, water, and urban infrastructure continued to fuel its core engineering and construction revenue streams.
💰 Profit and Margin Performance
L&T’s net profit surged to ₹3,965 crore, up 23% YoY from ₹3,222 crore in Q2 FY2024–25. Sequentially, profit improved by 15.9% over Q1 FY2025–26’s ₹3,422 crore.
The growth in profitability was supported by:
Better project execution efficiency.
Lower raw material cost inflation.
Higher contribution from the IT services and finance segments, which deliver superior margins.
EBITDA margin expanded to 12.1% from 11.3% a year ago, indicating enhanced operational discipline and cost control.
🧱 Order Wins and Project Pipeline
L&T continues to dominate the infrastructure and project execution landscape with record order inflows.
In Q2 FY2025–26, the company secured orders worth ₹76,800 crore, reflecting a 17.6% YoY growth.
Major Orders:
Water & Effluent Treatment Projects in North India and Maharashtra.
Renewable Energy EPC Contracts from the Middle East.
Metro Rail Projects in South India.
Power Transmission Projects across Asia and Africa.
As of September 30, 2025, the order book stood at ₹4.82 lakh crore, providing robust visibility for the next 2–3 years of execution.
🧮 Segment-Wise Performance
1. Infrastructure Projects Segment
Revenue: ₹28,350 crore (↑13% YoY)
Margin: 8.9%
This remains L&T’s largest contributor, with steady growth due to strong public spending and execution efficiency.
2. Energy Projects Segment
Revenue: ₹8,420 crore (↑11% YoY)
Improved margins supported by strong overseas orders in the Middle East and Africa.
3. IT & Technology Services
Revenue: ₹11,265 crore (↑10% YoY)
Driven by L&T Technology Services and LTI Mindtree, despite global IT slowdown.
4. Financial Services
Revenue: ₹3,620 crore (↑7% YoY)
Continued healthy loan book growth and lower provisioning supported profitability.
⚙️ Cost Management and Operating Efficiency
L&T demonstrated strong cost discipline during the quarter. Total expenses as a percentage of revenue declined to 87.9% from 88.7% last year.
Key operational initiatives:
Adoption of digital project monitoring systems to improve execution timelines.
Localization of supply chains to reduce import dependency and logistics cost.
Energy efficiency measures across plants and sites, enhancing ESG performance.
These efficiency initiatives helped maintain margins even amid inflationary pressure and high raw material costs.
📈 Comparative Financial Analysis
| Metric | Q2 FY2025–26 vs Q1 FY2025–26 | Q2 FY2025–26 vs Q2 FY2024–25 |
|---|---|---|
| Revenue | +4.8% | +12.2% |
| Net Profit | +15.9% | +23.0% |
| EBITDA | +10.8% | +19.4% |
| Order Inflow | +22.8% | +17.6% |
Analysis:
L&T continues to post strong sequential and annual growth across all major indicators.
Order inflows and execution efficiency provide a solid foundation for future revenue visibility.
Profit margins remain healthy and sustainable, showing balanced growth across segments.
🗣️ Management Commentary & Outlook
During the results announcement, L&T’s management highlighted optimism for FY2025–26 driven by domestic infrastructure demand and strong project momentum.
Key Points from Management:
The company aims for 12–15% revenue growth for the full fiscal year.
Order inflows expected to remain robust due to public and private capex in infrastructure, green energy, and transportation.
Focus on maintaining EBITDA margin above 12%, through efficiency and better project mix.
IT and technology subsidiaries to contribute significantly to earnings growth in the second half of FY26.
Quote from Management:
“We are witnessing strong traction across our core businesses. Our strategic focus on digitalization, green energy, and global expansion is positioning L&T for sustainable and profitable growth.”
💼 Market Reaction and Analyst Sentiment
Following the Q2 FY2025–26 results, L&T’s share price reacted positively, closing near ₹3,870 on NSE, up around 2% intraday.
Brokerages including Motilal Oswal, ICICI Direct, and Kotak Institutional Equities maintained ‘Buy’ ratings, citing:
Robust order book,
Strong execution capabilities, and
Healthy financial performance.
Analyst View:
“L&T’s diversified business model and strong balance sheet make it one of the most resilient infra plays in India’s growth cycle.”
🌍 Strategic Outlook: Building the Future
As India’s infrastructure capex cycle strengthens, L&T is expected to be a key beneficiary. The company’s ongoing focus areas include:
Green Energy Transition Projects
Smart Cities & Metro Rail
Water & Renewable Infrastructure
Digital Engineering and IT Integration
L&T’s order book provides visibility for over 30 months of revenue, offering comfort to long-term investors and analysts alike.
🧾 Conclusion
Larsen & Toubro’s Q2 FY2025–26 results underline its leadership in India’s infrastructure sector with record order inflows, improved margins, and solid profit growth.
While challenges like input cost volatility and global geopolitical tensions persist, the company’s robust order book, execution capabilities, and strategic diversification across IT, energy, and finance segments ensure stability and resilience.
In short:
✅ Revenue & Profit up double digits
✅ Record Order Wins
✅ Margins improved
✅ Positive FY26 guidance
L&T continues to stand tall as India’s infrastructure bellwether, driving the nation’s growth story with innovation and execution excellence.
