Engineering and construction major Larsen & Toubro (L&T) reported a robust performance for the quarter ended September 30, 2025 (Q2FY26) on October 29, 2025, posting a 16% year-on-year (YoY) rise in consolidated net profit to ₹3,926 crore, compared to ₹3,395 crore in the same quarter last year. Sequentially, profit increased by 8.5% from ₹3,617 crore.
The company’s performance was powered by a surge in order inflows, reflecting strong demand across multiple sectors and geographies. According to a BSE filing, orders worth ₹1.15 trillion were secured during the quarter, with 65% of these coming from international markets.
Revenue Growth and Market Performance
L&T’s revenue from operations rose 10% YoY to ₹67,984 crore, compared to ₹61,555 crore in Q2FY25, supported by healthy execution across business segments. On a sequential basis, revenue improved by 6.8%.
Despite broader market volatility, L&T shares closed marginally lower at ₹3,957 on October 29, 2025, following the results announcement.
Segment-Wise Performance Overview
L&T’s diversified business portfolio continues to demonstrate resilience across key segments:
- Infrastructure Projects:
Order inflow stood at ₹52,686 crore, up 6% YoY. However, revenue declined 1% to ₹31,759 crore due to extended monsoon conditions and slower progress in certain water projects. - Energy Projects:
A strong quarter for the energy vertical, with order inflows more than doubling to ₹38,156 crore, led by hydrocarbon projects. Revenue rose 48% to ₹13,082 crore, reflecting higher international execution. - Hi-Tech Manufacturing:
Orders stood at ₹2,582 crore, down 34% due to deferred orders. However, revenue increased 33% to ₹2,754 crore owing to improved execution efficiency. - IT & Technology Services:
Order inflow and revenue both increased 13% YoY to ₹13,274 crore, supported by improved sectoral spending. - Financial Services:
Order inflows grew 8.6% to ₹4,166 crore, while income also rose 9%, driven by higher retail disbursements. - Development Projects:
Order inflow reached ₹1,531 crore, up 10.6%, and revenue increased 10% to ₹1,533 crore.
Robust Order Pipeline and International Presence
The company reported a 45% YoY increase in order inflows, with a total of ₹1,15,784 crore worth of new orders booked during the quarter. These included projects in public spaces, data centres, metro systems, hydel and tunnel projects, renewables, and hydrocarbon sectors.
For the half-year ended September 30, 2025, L&T secured orders worth ₹2,10,237 crore, marking a 39% YoY growth, with international orders contributing 59% of the total at ₹1,24,236 crore.
L&T said the consistent execution of projects across geographies underscores its strength in navigating both local and global challenges, maintaining momentum despite adverse weather conditions.
Financial Highlights
- Revenue: ₹67,984 crore
- Profit: ₹3,926 crore
- Earnings per Share (EPS): ₹28.54 (basic) and ₹28.53 (diluted)
- Order Inflow: ₹1.15 trillion (₹1,15,784 crore)
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Conclusion
Larsen & Toubro’s Q2FY26 performance underscores its leadership in engineering and construction, backed by a strong order pipeline and sustained demand across key markets. The company’s focus on expanding its international footprint, investing in technology-led businesses, and driving operational excellence positions it well for long-term growth and resilience.
As India and the Middle East continue to witness higher capex activity, L&T’s broad-based capabilities across infrastructure, energy, and technology place it at the forefront of the next wave of engineering-driven development.
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