L&T Q2 FY26: Order Book Swells as Infra & Energy Lead Surge

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Larsen & Toubro reports a strong September quarter with a 45% rise in quarterly order inflows, 10% revenue growth, and 16% profit surge.

By S JHA

Mumbai, October 29, 2025 — Engineering and construction giant Larsen & Toubro (L&T) reported a robust second quarter for FY26, riding on surging order inflows and steady execution across infrastructure and energy segments.

For the half-year ended September 30, 2025, L&T secured orders worth ₹2,10,237 crore, marking a 39% year-on-year rise. In Q2 alone, order inflows touched ₹1,15,784 crore, up 45% year-on-year — reflecting strong momentum across Public Spaces, Data Centres, Metro, Renewables, and Hydrocarbon sectors.

The company’s order book stood at ₹6,67,047 crore as of September 2025, a 15% increase over March 2025, with international orders contributing 49% of the total backlog.

Revenue & Profit Up on Broad-Based Execution

L&T reported consolidated revenues of ₹1,31,662 crore for H1 FY26, up 13%, driven by infrastructure, energy, and technology services.
For Q2 FY26, revenue rose 10% year-on-year to ₹67,984 crore, with international business contributing 56%.

Profit after tax (PAT) for H1 FY26 came in at ₹7,543 crore, a 22% jump. Quarterly PAT stood at ₹3,926 crore, up 16% year-on-year, underscoring operational efficiency and improved execution margins.

Segment Highlights

Infrastructure Projects: ₹52,686 crore in new orders (+6% YoY); ₹31,759 crore revenue (down 1% YoY due to monsoon delays); EBITDA margin at 6.3%.
Energy Projects: ₹38,156 crore in orders (up 100% YoY), ₹13,082 crore revenue (+48% YoY); strong hydrocarbon execution drove growth.
Hi-Tech Manufacturing: ₹2,582 crore orders (-34% YoY); ₹2,754 crore revenue (+33% YoY) with improved margins at 14.7%.
IT & Technology Services: ₹13,274 crore revenue; continued strong performance in digital engineering and tech-enabled operations.

Strategic Move: Hyderabad Metro Divestment

Chairman & MD S. N. Subrahmanyan announced that L&T reached an in-principle agreement with the Telangana government to divest its stake in L&T Metro Rail (Hyderabad) — a key step under the Lakshya 2026 roadmap to exit public concession businesses.

“Our consistent order wins and disciplined execution reaffirm L&T’s leadership in EPC and technology-led growth. The Hyderabad Metro divestment aligns with our focus on capital efficiency and future-ready businesses,” Subrahmanyan said.

Financial Health & Outlook

L&T maintained a debt-equity ratio of 1.09 and current ratio of 1.25, reflecting a healthy balance sheet. The management expressed confidence in India’s 6.5–7% GDP growth and strong capex momentum across India and the Middle East.

Despite global economic uncertainty, the company remains bullish on infrastructure, renewables, and hydrocarbons, expecting sustained order traction in the coming quarters.

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