Engineering and construction major Larsen and Toubro (L&T) on July 29 reported a consolidated net profit for the quarter ended June 2025 at Rs 3,617 crore, up 30 percent compared to Rs 2,786 crore in the same quarter last year. Revenue from operations rose 15.5 percent to Rs 63,679 crore in Q1FY26 as against Rs 55,120 crore in the year-ago period.
On July 29, L&T's shares closed nearly 2 percent higher at Rs 3,488 apiece.L&T's net profit came in higher than market expectations and its revenues surpassed the market's view.
According to a Moneycontrol poll of six brokerages, the net profit of the engineering, procurement, and construction (EPC) major was expected to grow 25 percent year-on-year (YoY) to Rs 3,469 crore. The brokerages added that a combination of weak order inflows, segmental margin pressure, and a cautious project conversion cycle, especially in the Middle East, may limit upside in the near term.
The firm’s consolidated revenue was projected to rise 15 percent YoY to Rs 63,451 crore, while EBITDA (earnings before interest, taxes, depreciation, and amortisation) is expected to remain flat at 10.2 percent.
The company said the order inflow for the quarter ended June 30, 2025 stood at Rs 94,453 crore, registering a growth of 33 percent over the corresponding quarter of the previous year due to the strong ordering momentum from countries in the Middle East
International orders stood at Rs 48,675 crore for the quarter ended June 2025 much higher than the Rs 32,598 crore seen in the same period in 2024-25. International orders constituted 52 percent of L&T’s total order inflows.
The consolidated order book of the group was at Rs 6,12,761 crore as on June 30, 2025, with international orders having a share of 46 percent, L&T said.
The order book of Rs 4,75,809 crore represents a growth of 28 percent over Rs 4,90,881 crore as on June 30, 2024 and Rs 4,12,648 crore as on June 30, 2023 and Rs 3,63,448 crore as on June 30, 2022, the company said.
OUTLOOK
Going forward, L&T expects India's economic growth momentum to continue in the medium term facilitated by both public and private capital investment.
“Key high-frequency indicators in the services and manufacturing sectors continue to signal broad-based growth. The easing of inflation, a favorable monsoon and the RBI’s 50 bps reduction in the repo rate at its recently concluded June meeting could further aid the growth momentum in the economy,” L&T said.
However, on the international front L&T expects global economic activity to remain subdued with an uneven momentum.
“Regional growth patterns have become more fragmented, as geopolitical and policy uncertainties reshape the economic outlook,” the company said.
Within the international market L&T expects the countries that are part of the Gulf Cooperation Council, led by Saudi Arabia, to sustain the investment momentum in both the physical and digital infrastructure of the region.
The infrastructure major warned that despite its optimism around the GCC any further escalation of conflicts in the region could increase the uncertainty for financial markets, energy prices, investments, and global trade flows.
L&T Chairman and Managing Director SN Subrahmanyan said that the Union Budget released yesterday presented a detailed roadmap towards pursuit of a Viksit Bharat by 2047.
"With the expected policy continuation in India, the tailwinds in the Indian economic growth is likely to continue which will facilitate the Group to achieve its Lakshya 26 targets," Subrahmanyan said.
He added that L&T has achieved steady growth across all financial parameters in Q1 FY 2024-25, despite the geopolitical situation across the globe.
"Amidst various transformational shifts happening worldwide, we are well-positioned to grasp these opportunities with our expertise in our traditional P&M business and technology driven new-age businesses," Subrahmanyan added.
Back in May 2025 L&T had said that there are opportunities worth Rs 19 trillion from project orders that the company will look to bid for in the ongoing financial year 2025-26.
L&T's Chief Financial Officer R Shankar Raman while speaking at the company's post Q4FY25 earnings conference call, said that around 64 percent of the prospective order pipeline of Rs 19 trillion will come from international projects.
He added that on the back of a successful year in 2024-25, the next 12 months looks encouraging for L&T to aspire to grow on the large base of order inflows by around 10 percent in FY26.
L&T's management also guided for a revenue growth of 15 percent on year in FY26 while maintaining core operating margins at 8.3 percent in the current financial year.
L&T ended 2024-25 with topline growth of 16 percent at Rs 2.5 lakh crore from Rs. nearly Rs 2.21 lakh crore in 2023-24. Similarly, the company's order inflow during FY25 stood at Rs 3.5 lakh crore, up 18 percent when compared with an order inflow of Rs 3 lakh crore seen in FY24.
Infrastructure Projects Segment
Segment-wise, L&T’s infrastructure projects segment secured order inflows of Rs 41,024 crore, during the quarter that ended June 30, 2025, which was slightly higher than order worth Rs 40,053 crore secured in the same period last year and Rs 40,051 crore secured in the same quarter in FY24.
The segment order book stood at Rs 370,390 crore as of June 30, 2025, with the share of international orders at 42 percent. The segment order book stood at Rs 324,879 crore as of June 30, 2024.
Revenues from the segment rose 6.8 percent on year to Rs 29031.36 crore while profit from the segment rose 6.1 percent on year to Rs 1,273.27 crore.
The operating profit margin from the segment fell to 5.7 percent in Q1FY26 from 5.8 percent in the same period a year ago.
L&T's infrastructure projects segment had seen a sequential fall in operating margins for the seven quarters as the company won infrastructure projects at very aggressive prices after the post-COVID-19, post-Russia-Ukraine (conflict) period in 2022-23.
However, the company's chief financial officer R Shankar Raman had said that L&T expects its operating margin to start improving from the next financial year as orders won at aggressive prices in 2022-23 will complete execution and new orders start being carried out.
Energy Projects Segment
L&T secured order inflows of Rs 31,420 crore in this segment, during the quarter that ended June 30, 2025, which was nearly 3.5 times higher when compared to the corresponding quarter of the previous year when the company had won orders worth Rs 8,792 crore.
Energy Projects' Segment order book stood at Rs 186,401 crore as on June 30, 2025, with the international order book constituting 65 percent of the total order book.
Revenues from the segment rose 46.8 percent on year to Rs 12,474.31 crore while profit from the segment rose 25.8 percent on year to Rs 841.87 crore.
The EBITDA margin of the segment came in at 7.3 percent for the quarter that ended June 30, 2025, lower than the 8.7 percent over the corresponding quarter of the previous year.
L&T said that the margin variation was reflective of the varying project execution status within the portfolio.
Hi-Tech Manufacturing Segment
L&T secured order inflows of Rs 1,889 crore in this segment, during the quarter that ended June 30, 2025, which was half when compared to the corresponding quarter of the previous year when the company had secured projects worth Rs 3,677 crore.
The Hi-Tech Manufacturing Segment order book stood at Rs 39,162 crore as of June 30, 2025, with the international order book constituting 12 percent of the order book.
Revenues from the segment rose 75 percent on year to Rs 3362.11 crore while profit from the segment rose 61 percent on year to Rs 429.35 crore.
The EBITDA margin for the segment was at 15.1 percent for the quarter as compared to 17.4 percent in the corresponding quarter of the previous year.
IT & Technology Services Segment
L&T's revenues from this segment rose to Rs 12679.04 crore during the quarter that ended June 30, 2025, which was 9.7 percent higher when compared to the corresponding quarter of the previous year.
International billing contributed 92 percent of the total customer revenues of the segment.
Profit from the segment rose 7 percent on the year to Rs 2045.33 crore. The EBITDA margin for the segment was at 19.5 percent for the quarter as compared to 20 percent in the corresponding quarter of the previous year.
The segment margin fell due to lower utilization levels in LTIMindtree.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
