The management of infrastructure major Larsen & Toubro (L&T) on July 29 expressed confidence in the company's ability to meet its order inflow guidance of 10 percent for 2025-26 after L&T saw its order inflows rise 33 percent on year in Q1FY26 to Rs 94,453 crore.
"L&T has started FY26 strong and we are encouraged by the order inflows seen in Q1FY26, there is no reason for us to revise our order inflow guidelines for the year," L&T's Chief Financial Officer R Shankar Raman said.
While the 33 percent growth in order inflows seen in Q1FY26 was mainly due to a low base of Rs 70,936 crore from a year ago, as domestic order inflows in Q1FY25 were impacted due to the model code of conduct kicking in before the 2024 Lok Sabha Elections in India. L&T reported an average order inflow of Rs 75,703 crore in 2023-24 and Rs 89,158 crore in 2024-25.
The Lok Sabha elections were held in India from 19 April to 1 June 2024 in seven phases and the Model Code of Conduct came into effect from March 16, 2024 after the Election Commission of India announced the dates of the election.
Larsen & Toubro won orders worth Rs 3,56,631 crore at the group level during the year ended March 31, 2025, registering a y-o-y growth of 18 percent, and the company's management guided for a 10 percent growth of its order inflows in FY26 on May 8, 2025.
The management of L&T on July 29 added that there are opportunities worth Rs 15 trillion from project orders that the company will look to bid for in the rest of the ongoing financial year 2025-26. L&T's management had in May said that it was eyeing opportunities worth Rs 19 trillion in FY26.
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.
Shankar Raman added that L&T is also encouraged by the rise in private capital expenditure by smaller industrial segments in India at a time when large scale industrial capital expenditure by the Indian private sector continues to remain subdued.
He added that across India and the countries that are part of the Gulf Cooperation Council (GCC) around 70 percent of L&T's orderbook is made up of orders from private sector clients.
L&T is also bullish that India's energy demand is likely to continue to rise in the coming few years, especially on the back of growing demand for AI, datacenters in the country.
Shankar Raman also said that L&T is focusing its efforts to ensure that its order inflows in the infra segment grow faster than the 2.3 percent on year growth seen in Q1FY26. The company is hopeful of wining large infra orders in the space of water management in the coming months.
Shankar Raman also said that the economies of India and the GCC countries continue to move forward despite the geo-political disruptions seen around the world. He added that L&T has seen its international orderbook grow faster than domestic orderbook for the past year and six months.
Speaking about L&T's operating margins, Shankar Raman explained that L&T's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins declined to 9.9 percent in Q1FY16 from 10.2 percent mainly due to a fall in the company's EBITDA margin for IT & Technology Services segment.
Despite the fall in the company's EBITDA margin for IT & Technology Services segment L&T is currently not planning to offload employees
"L&T Mindtree does not have a surplus of employees at the moment," Shankar Raman said.
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