Larsen and Toubro reported a 33 per cent rise in consolidated net profit to Rs 5,202 crore for the second quarter of financial year 2026-27, the company said on 27 October 2026. The profit in the same quarter last year was Rs 3,926 crore. The result covered the three months ended 30 September 2026. Larsen and Toubro, often called L&T, is one of India’s largest engineering and construction groups, with work in infrastructure, energy, buildings, defence and technology services.
Consolidated revenue from operations rose 16 per cent year on year to Rs 78,750 crore, from Rs 67,984 crore in the second quarter of financial year 2025-26. The company said the rise was driven by faster progress in the projects, products and manufacturing portfolio. International revenue was Rs 45,870 crore in the quarter, which was 58 per cent of total revenue. The share of international revenue shows how much of the group’s work now comes from outside India.
Earnings before interest, tax, depreciation and amortisation, known as EBITDA, rose 1 per cent year on year to Rs 6,845 crore, from Rs 6,807 crore a year earlier. The EBITDA margin narrowed to 8.6 per cent, from 10.01 per cent a year earlier. The margin figure measures how much operating profit the company kept from each rupee of revenue, and the narrowing shows that costs rose faster than revenue in some parts of the business, even though total profit rose.
Larsen order inflow hits record level
Larsen secured orders worth Rs 147,665 crore in the quarter, a rise of 28 per cent year on year. The company described that figure as a record quarterly order inflow. International orders were Rs 92,375 crore, which was 63 per cent of total order inflow. Large order wins came from hydrocarbon offshore and onshore work, CarbonLite Solutions, public spaces and airports, and power transmission and distribution. Those sectors together made up a large share of the new work won in the quarter.
The consolidated order book stood at Rs 853,514 crore at 30 September 2026, a rise of 15 per cent over March 2026. International orders made up 54 per cent of the order book. The order book is the value of work that has been won but not yet completed, and it gives a view of future revenue as that work is executed over several years. A larger order book does not guarantee profit, since execution costs and timelines can change, but it does show the scale of work under contract.
Larsen margin narrows despite profit rise
The contrast between rising profit and a narrower margin was a key feature of the quarter. Revenue rose 16 per cent, but EBITDA rose only 1 per cent, which points to cost pressure in parts of the business. Reports on Larsen results pointed to cost pressure in water and effluent treatment projects, early stage work in CarbonLite Solutions, and higher costs across the portfolio. The mix of work also mattered, since projects, products and manufacturing work often carries lower margins than technology services work.
S. N. Subrahmanyan, chairman and managing director of Larsen and Toubro, said Larsen had delivered a strong quarter in a changing geopolitical setting. He said the performance reflected continued customer confidence and the ability to secure large orders across sectors and geographies. He also said focused execution across projects, products and manufacturing supported higher revenue growth, and that the order book at Rs 8.5 lakh crore provided visibility for revenue over several years. The quote was given in the company’s statement on the results.
What Larsen results show about infrastructure
The results point to continued demand for large infrastructure, energy and industrial work, both in India and abroad. International orders made up almost two thirds of new orders in the quarter, which shows that overseas work is now a major driver for the group. Domestic work remains large in absolute terms, but the growth in international orders was faster in the quarter. The order book of Rs 853,514 crore will take several years to execute, and the pace of that execution will shape revenue in future quarters.
For Larsen investors, the next test will be whether margins recover as the new orders move into execution. If costs ease and the mix of work shifts, margins could widen again. If cost pressure continues, profit growth may lag revenue growth, as it did in this quarter on the EBITDA measure. Larsen ended the second quarter with consolidated profit of Rs 5,202 crore and revenue of Rs 78,750 crore.