Larsen & Toubro reported a 14% year-on-year increase in consolidated profit after tax (PAT) to ₹4,123 crore for the quarter ended June 30, 2026, surpassing analyst estimates of ₹3,490 crore. The bottom-line growth was primarily driven by a significant 31% reduction in finance costs to ₹539 crore, which offset a 3% decline in consolidated EBITDA to ₹6,116 crore. Consolidated revenues from operations rose 7% to ₹67,942 crore, beating the estimated ₹66,500 crore, with international revenues contributing 51% of the total. The Board of Directors approved these unaudited financial results on July 28, 2026.

The Board meeting, held in Mumbai, also sanctioned the Scheme of Amalgamation between Larsen & Toubro Limited and its wholly owned subsidiary, L&T Power Development Limited (LTPDL). The merger, subject to approval by the National Company Law Tribunal (NCLT) Mumbai bench, aims to rationalize administrative efforts, streamline management structures, and centralize pending litigations associated with the power development portfolio. Upon effectiveness, shares held by the parent company in LTPDL will be cancelled without cash consideration or new equity issuance. The company flagged that growth may face challenges from supply chain disruptions and high energy prices.

Financial Performance Overview

Group order inflows surged 14% year-on-year to ₹1,08,014 crore, bolstered by significant wins in residential buildings, transportation infrastructure, ferrous metals, offshore wind, and heavy engineering. International orders accounted for 56% of the total inflow. The consolidated order book expanded 5% quarter-on-quarter to ₹7,78,954 crore as of June 30, 2026. Management highlighted a strong addressable prospects pipeline of approximately ₹15 trillion for the near term.

The following table summarizes key financial metrics against prior year performance and analyst estimates:

Despite revenue growth, consolidated EBITDA contracted 3% to ₹6,116 crore, falling short of the estimated ₹6,410 crore. The EBITDA margin came in at 9.00%, below both the prior year's 9.92% and the estimated 9.60%. This margin compression was evident across several segments, including Infrastructure & Utilities and Manufacturing & Products.

Segment Highlights

The Energy – Green segment emerged as a key growth driver, securing orders worth ₹33,042 crore, a 58% increase year-on-year, largely due to ultra-mega orders in offshore wind. However, customer revenues for this segment fell 11% to ₹5,607 crore due to supply chain disruptions in the solar business stemming from conflicts in West Asia. Its EBITDA margin narrowed slightly to 6.0% from 6.1%.

The Infrastructure & Utilities segment saw order inflows more than double to ₹44,357 crore, though customer revenues dipped 3% to ₹21,858 crore amid execution challenges in water and effluent treatment. Its EBITDA margin narrowed to 5.1% from 5.5%, impacted by credit provisions for delayed receivables. Conversely, the Technology, Platforms & Services segment grew revenues 15% to ₹14,627 crore, maintaining a strong EBITDA margin of 19.2%. The Energy – Conventional segment saw revenue rise 14% to ₹14,239 crore with a stable EBITDA margin of 7.6%.

What the Numbers Show

The quarterly results present a mixed picture — strong top-line and bottom-line performance against estimates, but operational margin pressure relative to both the prior year and consensus expectations. While revenues rose 7% and net profit jumped 14%, EBITDA declined 3% and missed estimates by a notable margin. The improvement in bottom-line profitability was supported by a significant 31% reduction in finance costs rather than core operational margin expansion. The contraction in EBITDA margin from 9.92% to 9.00%, against an estimate of 9.60%, underscores continued pressure on operational earnings despite higher sales volumes and robust order inflows. Additionally, working capital management showed signs of strain, with net cash from operations before financing activities declining to ₹62.8 billion from ₹70.3 billion in the prior year quarter, driven by adverse changes in working capital.

Larsen & Toubro Limited has accepted the resignation of V. Sukumar Hebbar, who served as Senior Vice President & IC Head for the Transportation Infrastructure Integrated Company (IC). His resignation is effective from the close of business hours on July 27, 2026, and he has ceased to be a Senior Management Personnel of the company with immediate effect from that date.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR). The filing also references master circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, which governs such disclosures.

Resignation Details

The following table outlines the key details of the management change as per the regulatory filing:

Subramanian Narayan, Company Secretary & Compliance Officer (ACS 16354), signed the communication on July 28, 2026, confirming that the information has been submitted to both the BSE Limited and the National Stock Exchange of India Limited.

Impact on Operations

V. Sukumar Hebbar’s departure marks a leadership change within the Transportation Infrastructure segment, a core business vertical for Larsen & Toubro. The company has not provided further details regarding the reason for the resignation or the immediate succession plan in this initial disclosure. Shareholders and investors should monitor subsequent filings for updates on interim arrangements or permanent appointments to fill this senior leadership role.