Engineering and construction heavyweight Larsen & Toubro (L&T) closed FY26 with a steady operational performance and record order momentum, even as its March quarter profit saw a marginal dip due to a high base.
The company reported a 3% decline in consolidated net profit for Q4 FY26 at ₹5,326 crore, compared with ₹5,497 crore a year ago. The moderation, however, was largely optical, last year’s numbers included an exceptional gain of ₹475 crore.
Stripping out that effect, the underlying performance remains resilient. Revenue for the quarter grew a healthy 11% year-on-year to ₹82,762 crore, driven by consistent execution across segments.
But the real story lies beyond the quarterly optics.
Record order inflows signal strong growth visibility
L&T capped the year with order inflows crossing the ₹4 lakh crore mark, an all-time high that underlines its positioning across domestic and global infrastructure opportunities. In Q4 alone, the company bagged orders worth ₹89,772 crore, with international contracts contributing a dominant 67%.
Large-ticket wins spanned across commercial and residential buildings, roads and runways, urban transport, power transmission, and hydrocarbon onshore businesses, highlighting L&T’s diversified execution engine.
Chairman and Managing Director S N Subrahmanyan summed it up succinctly: the company’s strategy of combining a strong domestic base with a growing international footprint is now paying off in scale and consistency.
FY26: growth with strategic investments
For the full year, L&T reported consolidated revenue of ₹2,85,874 crore, marking a 12% year-on-year growth. Net profit stood at ₹16,084 crore, which included a one-time provision of ₹1,155 crore linked to employee benefits following the implementation of new labour codes.
International business continues to be a key growth lever. Overseas revenues came in at ₹1,53,738 crore, contributing 54% to total revenue, an indicator of improved execution across global projects and manufacturing portfolios.
Segment watch: infrastructure and energy lead the charge
The Infrastructure Projects segment remained the backbone of growth, clocking order inflows of ₹1,99,064 crore for the year, up 15% YoY. The order book swelled to ₹4,22,562 crore, with nearly half coming from international markets.
The Energy Projects segment emerged as the standout performer, with order inflows surging 56% YoY to ₹1,36,921 crore, driven by strong traction in hydrocarbon and carbon-lite solutions. Its order book now stands at ₹2,58,472 crore, with a significant global skew.
In contrast, the Hi-Tech Manufacturing segment saw a slowdown, with order inflows declining due to a high base and deferred orders, particularly in the Precision Engineering & Systems business.
Services businesses deliver steady performance
The IT & Technology Services segment posted a stable 12% growth in annual revenues at ₹53,497 crore, with international billing contributing a robust 92%. Margins remained steady at 19.5%, reflecting operational discipline.
Meanwhile, the Financial Services arm continued its growth trajectory, with income rising 14% YoY and the loan book expanding 25% to ₹1,21,728 crore—driven largely by retail lending, which now accounts for 98% of the portfolio.
Mixed trends in development and other segments
The Development Projects segment witnessed a modest decline due to lower plant load factors and absence of monetisation gains seen last year. Similarly, the “Others” segment, which includes realty, industrial valves, and construction equipment, remained largely stable.
Dividend and outlook
Reflecting confidence in its financial position, L&T’s board has recommended a final dividend of ₹38 per share, subject to shareholder approval.