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Mumbai: India’s greatest infrastructure conglomerate Larsen & Toubro (L&T) crossed a brand new milestone within the first quarter of FY26, with its total order e book surpassing ₹6 trillion for the primary time—pushed by a booming Center East pipeline and regular home execution. The orderbook on the finish of Q1 was ₹6.12 trillion, up from ₹5.79 trillion as of 31 March 2025.
“Each India and the Center East, our two major geographies for many of our companies, continued to maneuver forward,” R. Shankar Raman, the corporate’s whole-time director and chief monetary officer mentioned in a submit earnings name on Tuesday. “Our technique to concentrate on India and Center East tasks companies is paying off.”
Within the quarter, the corporate acquired contemporary enterprise value ₹945 crore, a 3rd greater than in the identical interval final 12 months. Simply over half of this enterprise was from abroad.
The corporate has additionally recognized about ₹15 trillion of order pipeline–enterprise that it’ll bid for. That is up from about ₹12 trillion 1 / 4 in the past. Nearly three quarters of this chance is from abroad, primarily the Center East. Sometimes, L&T converts a couple of fourth of its order pipeline into enterprise.
The corporate, which introduced its Q1 outcomes on Tuesday, reported sturdy progress in income and revenues whilst profitability fell marginally. Consolidated revenue was up 30% year-on-year (y-o-y) to ₹3,617 crore. Income was up 16% y-o-y to ₹63,679 crore, with worldwide enterprise accounting for 52%. In Q1 of FY25, about 48% of its revenues got here from worldwide tasks.
Earnings earlier than curiosity, tax, depreciation and amortization (Ebitda), an alternate fiscal metric, grew 13% y-o-y to ₹6,318 crore. Nevertheless, Ebitda margin shrank by 30 foundation factors to 9.9% over the identical interval.
Among the many firm’s key enterprise segments, income progress was the sharpest within the power tasks enterprise, which can be the third largest contributor to the highest line. The section reported a income of ₹12,470 crore, up by nearly 50% from final 12 months. Order inflows nearly quadrupled to ₹31,420 crore. Nevertheless, order influx within the enterprise tends to be lumpy and inconsistent, Shankar Raman warned.
The biggest contributor, infrastructure tasks, noticed its income develop 7% y-o-y to ₹28,757 crore. Order influx was largely flat at ₹40,053 crore.
Within the home market, industrial capex was nonetheless subdued, Shankar Raman admitted. He attributed this to international uncertainty given the a number of ongoing wars and commerce disputes. Nevertheless, personal capex was flowing in different segments like hospitals and information centres, amongst others, he mentioned.
On Tuesday, L&T introduced profitable an order valued upwards of ₹15,000 crore in its hydrocarbon offshore enterprise vertical. This is among the firm’s largest orders ever. The order is from an unnamed however “prestigious” consumer within the Center East, the corporate mentioned in a press launch. The challenge contains engineering, procurement, development and set up of a number of offshore constructions, together with the upgradation of current services.
“The offshore hydrocarbon enterprise is topline and margin accretive,” mentioned Nirav Karkera, head of analysis at Fisdom, a wealth administration agency. “Provided that L&T has current capabilities right here, it must be margin accretive for them sooner in comparison with others.”
IT jitters
Whereas Shankar Raman reassured his firm’s shareholders, his commentary on L&T’s IT and IT companies companies did little to assuage the nerves of the roughly 120,000 workers in its IT division who can be on the sting after market chief Tata Consultancy Providers (TCS) introduced retrenching over 12,000 jobs over the weekend.
L&T will concentrate on having the correct competencies because the market demand within the IT companies sector evolves, Shankar Raman mentioned, echoing the sentiment of TCS chief govt officer Okay. Krithivasan when he introduced the corporate’s choice to let go of about 2% of its workforce, primarily center and senior administration, attributable to ability mismatch.
L&T has not reached a stage the place surplus expertise must be laid off, its CFO mentioned. “However having mentioned that, consistently we should consider if now we have the correct skillset,” he warned. L&T’s IT division contains listed firms LTIMindtree and L&T Know-how Providers Ltd.
The IT and IT companies section, which is the second largest contributor to L&T’s consolidated revenues and is a comparatively massive revenue contributor, noticed its prime line develop by a tenth y-o-y to ₹12,619 crore. Its Ebitda margin fell by 50 foundation factors to 19.5%.
Fisdom’s Karkera expressed confidence within the firm’s IT prospects. “When the outlook is bleak for all the sector, you’ll be able to’t blame them. They’ve anyway been working an environment friendly enterprise, and when that is over, they’ll come out stronger than their friends,” he mentioned.
L&T’s shares ended 2.13% greater on the BSE on Tuesday at ₹3,495.10. The earnings had been introduced after market hours. The benchmark BSE Sensex ended the session 0.55% greater.
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