Larsen & Toubro Limited has announced its audited financial results for the quarter and year ended March 31, 2026, reporting a year of robust performance marked by record order inflows and steady revenue growth. The Board of Directors, which met on May 5, 2026, approved the results and recommended a final dividend of ₹38 per share of face value ₹2 each for the financial year ended March 31, 2026, up from the previous year's final dividend of ₹34 per share. The dividend will be paid after shareholder approval at the ensuing Annual General Meeting, tentatively by June 10, 2026. The record date for determining entitlement to the dividend has been fixed as Friday, May 22, 2026.

Financial Performance Overview

The company achieved consolidated revenues of ₹285,874 crore for the year ended March 31, 2026, registering a year-on-year growth of 12%, driven by steady execution progress across businesses. International revenues during the year stood at ₹153,738 crore, constituting 54% of total revenues. For the quarter ended March 31, 2026, the company reported consolidated revenues of ₹82,762 crore, reflecting an 11% year-on-year growth, with international revenues of ₹43,747 crore contributing 53% of total revenues.

Profitability metrics showed strong improvement. The company posted a Recurring Profit After Tax (PAT) of ₹17,238 crore for the year, registering an 18% year-on-year growth. The total Consolidated PAT for the year stood at ₹16,084 crore, which includes a one-time material provision of ₹1,155 crore (net of tax & NCI) towards employee benefits arising from the implementation of new labour codes, classified under Exceptional Item. For the quarter, the Recurring PAT was ₹5,289 crore, a growth of 5% on a year-on-year basis, while the total Consolidated PAT for the quarter was ₹5,326 crore, reflecting a decline of 3%. The year-on-year decline in Consolidated PAT for the quarter is primarily attributable to an exceptional gain (net of tax & NCI) of ₹475 crore in the previous year.

Order Inflows and Order Book

Larsen & Toubro Group secured orders worth ₹435,590 crore during the year, registering a 22% year-on-year growth — a record high for the company. Order inflows covered multiple geographies and a diverse set of businesses, including Buildings & Factories, Transportation Infrastructure, Heavy Civil Infrastructure, Power Transmission & Distribution, Renewables, Minerals & Metals, Thermal BTG, and the Hydrocarbon businesses. International orders stood at ₹251,078 crore, contributing 58% to the total order inflow. For the quarter ended March 31, 2026, the company recorded consolidated order inflows of ₹89,772 crore, with international orders of ₹59,994 crore contributing 67% of the total.

The Group's consolidated order book as of March 31, 2026, stood at an all-time high of ₹740,327 crore, reflecting a 28% growth over March 2025. International orders constituted 52% of the overall order book.

Segment Performance

The following table presents the key segment-wise performance metrics for the full year:

Note 1 – Financial Services (NIM + Fees %):

Note 2 – Development Projects EBIT (₹ crore):

The quarterly segment performance is presented below:

Infrastructure Projects

The Infrastructure Projects segment secured order inflows of ₹199,064 crore during the year, registering a growth of 15% year-on-year, aided by major orders in the Renewables, Power Transmission & Distribution, and Heavy Civil Infrastructure businesses. International orders constituted 59% of the total order inflow. For the quarter, the segment secured orders of ₹43,477 crore, a growth of 26% over the corresponding quarter of the previous year, with international orders contributing 67%. The segment order book stood at ₹422,562 crore as of March 31, 2026, with international orders contributing 48%. Customer revenues for the year were ₹133,910 crore, a 3% year-on-year growth, with subdued performance largely attributable to execution challenges in domestic water jobs impacted by project funding constraints. The EBITDA margin improved to 6.9% from 6.4% in the previous year, driven by execution cost savings.

Energy Projects

The Energy Projects segment secured orders valued at ₹136,921 crore during the year, registering a strong growth of 56% year-on-year, aided by high-value orders in both the Hydrocarbon and CarbonLite Solutions businesses. International order inflow constituted 60% of the total. For the quarter, the segment secured orders of ₹21,296 crore, a year-on-year decline of 34%, largely due to a high-base effect, with international orders constituting 80%. The segment order book stood at ₹258,472 crore as of March 31, 2026, with the international order book representing 67%. Customer revenues for the year were ₹54,865 crore, a healthy growth of 35% year-on-year, with international revenues constituting 74%. The EBITDA margin was 6.8% for the year, compared to 8.5% in the previous year, primarily due to cost inflation in a few legacy jobs in the Hydrocarbon business.

Hi-Tech Manufacturing

The Hi-Tech Manufacturing segment reported order inflows of ₹8,366 crore during the year, a decline of 54% over the previous year, attributable to a high base effect in the Precision Engineering & Systems business. Export orders accounted for 32% of the total order inflow. The segment order book stood at ₹35,312 crore as of March 31, 2026, with export orders contributing 13%. Customer revenues for the year were ₹14,109 crore, a healthy growth of 46% year-on-year, driven by improved execution progress in both businesses. The EBITDA margin was 16.7% for the year, compared to 17.3% in the previous year.

IT & Technology Services

The IT & Technology Services segment recorded customer revenues of ₹53,497 crore for the year, registering a year-on-year growth of 12%, largely reflecting continued customer engagement across various markets. International billing contributed 92% of the total customer revenues. For the quarter, the segment reported customer revenues of ₹14,078 crore, a year-on-year growth of 13%. The segment delivered an EBITDA margin of 19.5% for the year, in line with the previous year.

Financial Services

The Financial Services segment recorded income from operations of ₹17,283 crore during the year, registering a year-on-year growth of 14%, primarily driven by focused and higher disbursements in the retail business. For the quarter, income from operations was ₹4,669 crore, a year-on-year growth of 22%. The total Loan Book stood at ₹121,728 crore as of March 31, 2026, reflecting a 25% growth compared to ₹97,762 crore in March 2025, with the Retail Loan Book constituting 98% of the total. The segment recorded a Profit Before Tax (PBT) of ₹4,032 crore for the year, compared to ₹3,491 crore in the previous year.

Development Projects

The Development Projects segment recorded customer revenues of ₹5,117 crore during the year, a decline of 5% year-on-year, attributable to a lower Plant Load Factor (PLF) at the Nabha Thermal Power Plant and the absence of revenue from any transit-oriented development monetisation. The segment recorded an EBIT of ₹539 crore for the year, lower than the ₹716 crore reported in the previous year, which had included monetisation of commercial property by the Hyderabad Metro SPV.

Others

The "Others" segment — comprising Realty, Industrial Valves, Construction Equipment & Mining Machinery, and Rubber Processing Machinery — recorded customer revenues of ₹7,093 crore for the year, compared to ₹7,065 crore in the previous year. Export sales constituted 15% of total customer revenues. The EBITDA margin improved to 31.3% from 29.2% in the previous year, primarily aided by improved product mix.

Management Commentary

Commenting on the results, S N Subrahmanyan, Chairman and Managing Director, said: "The year concluded on a strong note, supported by good financial performance across segments. Order inflow for the year exceeded a record ₹4 lakh crore — a clear reflection of our strategy, built on a strong domestic base complemented by a significant international presence, enabling the Company to exploit global opportunities. During the year, we have executed Agreements for divesting our full stakes in Nabha Power Limited and L&T Metro Rail (Hyderabad) Limited. We expect the closure of these transactions by 30th June 2026. This aligns with our stated strategy to exit from the Concessions portfolio. As this being the terminal year of our Lakshya'26 plan, I am happy to say that we have achieved most of the targets we set for ourselves, whether in terms of order book, revenue or exits from non-core businesses. We embark on another 5-year journey of Lakshya'31 to make the organisation future-ready through accelerated adoption of AI & digital technologies and investments in data centers, green energy, industrial electronics & semiconductor technologies."

Board Appointments and Corporate Governance

The Board approved several key leadership changes at its meeting. The following table summarises the appointments and re-appointments:

Mr. Vijay Sankar is the Chairman of The Sanmar Group, headquartered in Chennai, with manufacturing facilities in Mexico, Egypt, and several locations across South India, and a turnover of approximately US$ 1.6 billion. He holds an MBA from the J L Kellogg Graduate School of Management, Northwestern University, and is a qualified Chartered Accountant. Mr. Pramit Jhaveri presently acts as advisor and mentor to start-ups, corporates, and family offices, and is a Senior Advisor to Premji Invest and PJT Partners. He previously served as Chief Executive Officer of Citibank India from 2010 to 2019. Mr. R. Shankar Raman is a qualified Chartered Accountant and Cost Accountant who joined L&T Group in November 1994 and was appointed as CFO of Larsen & Toubro Limited in September 2011. Mr. P. Ramakrishnan is a Chartered Accountant with 33 years of experience with L&T, currently serving as Senior Vice President – Corporate Accounts, Taxation & Investor Relations, and has previously held the position of CFO of L&T Technology Services.

The company has fixed Friday, June 5, 2026, as the date for the 81st Annual General Meeting (AGM), to be held at 3:00 p.m. (IST) through Video Conferencing. Friday, May 29, 2026, has been fixed as the Cut-off Date for ascertaining members eligible for e-voting. The Integrated Annual Report for FY 2025-26 will be electronically sent to members.

Outlook

The Indian economy demonstrated resilience in FY 2025-26. The global environment remains challenging, characterised by geopolitical matters resulting in disrupted trade conditions. India's GDP growth is supported by sustained domestic demand and public capital expenditure, with private sector investments also having improved. India's service sector and digital economy, which are relatively less exposed to disruptions in the Middle East, are expected to remain key growth engines, with momentum sustained by continued expansion in fintech, cloud technologies, AI-enabled services, and the rise of Global Capability Centers (GCCs). The company remains focused on maximising shareholder value by driving operational excellence through AI & digital initiatives, maintaining working capital discipline, prudent capital allocation, and ensuring effective and profitable execution of its robust order book.

Larsen & Toubro has allotted 35,981 equity shares to eligible grantees who exercised their options under the Company's Employee Stock Option Schemes. The allotment was approved by the Nomination & Remuneration Committee (NRC) of the Board on May 5, 2026, as communicated through a regulatory filing addressed to BSE Limited and the National Stock Exchange of India Limited.

ESOP Allotment Details

The key details of the allotment are outlined in the table below:

Share Ranking and Parity

The newly allotted equity shares will rank pari-passu with the existing equity shares of Larsen & Toubro in all respects. This means the allotted shares carry the same rights and entitlements as the existing equity shares of the Company. The regulatory disclosure was signed by Subramanian Narayan, Company Secretary & Compliance Officer of Larsen & Toubro, and submitted to the stock exchanges in compliance with applicable listing obligations.