Larsen & Toubro Ltd. (L&T) reported a 33% year-on-year increase in consolidated net profit for the September quarter of fiscal 2027, beating analyst estimates, while revenue also exceeded expectations. The engineering and construction major recorded its highest-ever quarterly order inflow, taking its order book to a record Rs 8.53 lakh crore.
L&T reported quarterly order inflow of Rs 1.47 lakh crore, its highest-ever for a single quarter, marking 28% year-on-year growth. The order book stood at Rs 8.53 lakh crore as of September 30, 2026, also a record for the company. Order inflow for the first half of fiscal 2027 reached Rs 2.55 lakh crore, up 22% year-on-year.
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Domestic orders grew 27% during the September quarter, while international orders increased 22%. Around 75% of L&T's international order book is from Middle Eastern countries, highlighting the region's importance to the company's order pipeline.
R. Shankar Raman, President and Whole-Time Director – Finance at L&T, said the company was not changing its guidance. He added that if the company maintains its historical order win ratio of 20%-25%, it could see similar order inflows in the second half of the financial year.
READ | L&T Q2 Print: Net Profit, Revenue Beat Estimates; Orderbook Jumps 28%
Conventional energy order inflows doubled year-on-year, providing another source of growth for the engineering and construction major.
L&T Flags Logistics Delays, Rising Costs And Margin Pressure
Despite the strong order pipeline, L&T flagged execution and cost-related challenges that could affect revenue recognition and profitability. Speaking to NDTV Profit, the company said the pace of execution on domestic orders was proceeding normally. However, some international orders had been affected by logistics delays.
L&T said delays in resolving these disruptions could push back revenue generation from affected projects. International disruptions have also forced the company to increasingly source materials from local markets. The company is facing higher logistics expenses, input costs and wages, all of which are putting pressure on margins.
The contrast between strong order inflows and weaker operating margins remains a key factor for investors to monitor. While the record order book provides revenue visibility, the pace at which projects are executed and costs are managed will influence how much of that growth translates into earnings.
L&T Maintains Guidance Despite Margin Pressure
L&T has retained its existing guidance, even as margins in some businesses remain under pressure. The Projects and Manufacturing (P&M) business reported a margin of 7% in the first half of fiscal 2027, compared with the 7.8% margin guided for the full financial year.
Raman also highlighted the slowdown in the water business as one of the major concerns for the company.
The first-half performance and the challenges around logistics, wages and input costs will be important considerations as L&T works towards its full-year targets. The company's ability to convert its record order book into revenue while protecting margins will remain a key focus in the coming quarters.
L&T Q2 Performance
Consolidated net profit rose to Rs 5,202 crore from Rs 3,926 crore in the corresponding quarter last year. Profit exceeded the consensus estimate of Rs 4,342 crore.
Revenue increased 16% year-on-year to Rs 78,750 crore from Rs 67,984 crore, compared with the estimate of Rs 73,303 crore.
However, operating performance remained subdued. Earnings before interest, taxes, depreciation and amortisation (Ebitda) increased around 1% to Rs 6,845 crore from Rs 6,806 crore, marginally below the estimate of Rs 6,999 crore.
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The Ebitda margin contracted to 8.7% from 10% a year earlier, also falling short of the estimated 9.54%.
L&T reported growth across several business segments in the September quarter, although the pace varied by division. The Infrastructure and Utilities business reported revenue of Rs 25,554 crore, up 6% year-on-year, while earnings before interest and tax (EBIT) increased 1% to Rs 1,144 crore.
The Green Energy business recorded revenue growth of 43% to Rs 11,494 crore. EBIT rose 37% to Rs 669 crore. The Manufacturing and Products business reported revenue of Rs 4,639 crore, up 31% year-on-year, while EBIT increased 58% to Rs 610 crore. Conventional Energy revenue rose 28% to Rs 17,289 crore, while EBIT increased 13% to Rs 1,158 crore.
The Technology business reported revenue growth of 11% to Rs 14,938 crore, with EBIT also increasing 11% to Rs 2,443 crore. Financial Services revenue increased 27% to Rs 5,307 crore, while EBIT rose 33% to Rs 1,319 crore.
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