Larsen & Toubro LimitedQ2 FY27 Results & Financial Update
Larsen & Toubro Limited: Q2 FY27 consolidated results and company financials – revenue ₹78,749.94 Cr, PAT ₹5,949.15 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Larsen & Toubro Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
L&T reported consolidated revenues of ₹78,750 crore for the quarter ended September 30, 2026, marking a 16% year-on-year growth driven by accelerated execution progress across its Projects, Products & Manufacturing (PPM) portfolio. International revenues stood at ₹45,870 crore, representing 58% of total quarterly revenues.
Order momentum remained robust, with the company securing record quarterly order inflows worth ₹147,665 crore, up 28% year-on-year, led by high-value wins in Hydrocarbon Offshore & Onshore, CarbonLite Solutions, Public Spaces & Airports, and Power Transmission & Distribution.
International orders accounted for 63% of the total order inflow during the quarter, bringing the cumulative group consolidated order book to a record ₹853,514 crore as of September 30, 2026, reflecting a 15% growth over March 2026.
Operational profitability as measured by EBITDA was ₹6,845 crore with an EBITDA margin of 8.7%, compared to 10.0% in Q2 FY26, moderated by early-cycle execution profiles in emerging segments and cost pressures.
The company successfully concluded a private placement of tokenized non-convertible debentures (Demat 2.0) on September 9, 2026, raising ₹500 crore, with full utilization reported against general business purposes without deviation.
01 · Business model
What does Larsen & Toubro do?
Larsen & Toubro Limited (L&T) is a prominent Indian multinational conglomerate operating across critical economic pillars including engineering, procurement, and construction (EPC) projects, hi-tech manufacturing, defense, and digital platforms and services.
The group's operational scope spans several core segments: Infrastructure & Utilities, Conventional Energy, Green Energy, Manufacturing & Products, Technology, Platforms & Services, Financial Services, Realty, and Development Projects.
L&T derives a substantial portion of its revenue internationally, acting as a primary contractor for large-scale public and private infrastructure, hydrocarbons, power transmission, and heavy engineering works globally.
02 · Historical context
What shaped the business before this quarter
Effective April 1, 2026, the company realigned its operating structure under the Lakshya 2031 strategic plan, renaming erstwhile Infrastructure Projects to Infrastructure & Utilities, Energy Projects to Energy-Conventional, and carving out Renewables and Offshore Wind into Energy-Green.
The group completed the divestment of Nabha Power Limited on June 25, 2026, reclassifying its historical contributions within the Development Projects segment.
In line with a Share Purchase Agreement with HMRL, Hyderabad Metro operations were accounted for until April 30, 2026, with continuing assets classified as held for sale.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹78,749.94 Cr | ₹67,941.74 Cr |
| Total income | ₹81,056.20 Cr | ₹70,318.47 Cr |
| Profit before tax | ₹7,641.06 Cr | ₹6,922.26 Cr |
| Profit after tax | ₹5,949.15 Cr | ₹4,988.03 Cr |
| EPS | ₹37.81 | ₹29.96 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Accelerated execution across Projects, Products & Manufacturing segments propelled operating revenue to ₹78,750 crore, up 16% year-on-year.
International revenue reached ₹45,870 crore, constituting 58% of the total quarterly top-line, bolstered by robust overseas project deliveries.
Infrastructure & Utilities contributed ₹25,133 crore (up 6% y-o-y), Conventional Energy contributed ₹17,285 crore (up 29% y-o-y), Green Energy recorded ₹11,493 crore (up 43% y-o-y), and Technology, Platforms & Services generated ₹14,826 crore (up 11% y-o-y).
Revenue growth was supported by accelerated progress and improved execution across domestic private sector projects and international sites within the PPM portfolio.
International billing reached Rs. 45,870 crore during the quarter, accounting for 58% of total consolidated revenue.
Customer revenues expanded in Energy - Conventional (up 29% YoY to Rs. 17,285 crore), Energy - Green (up 43% YoY to Rs. 11,493 crore), and Manufacturing & Products (up 34% YoY to Rs. 4,480 crore) due to improved execution milestones and ramp-up in solar and offshore wind jobs.
What drove margins
Consolidated EBITDA margin stood at 8.7% for Q2 FY27 compared to 10.0% in Q2 FY26, impacted by cost pressures and early-stage execution mix in the CarbonLite Solutions business.
The Manufacturing & Products segment expanded its EBITDA margin to 15.7% from 13.5% a year ago, reflecting a more favorable project execution profile.
Infrastructure & Utilities recorded an EBITDA margin of 5.7% compared to 6.2% a year ago, affected by cost pressures and changes in sales mix.
Energy - Conventional EBITDA margin stood at 7.4% down from 8.2% YoY, attributed to a higher proportion of orders in early stages of execution within the CarbonLite Solutions business.
Technology, Platforms & Services segment delivered an EBITDA margin of 19.5% compared to 20.0% in the corresponding previous period, moderated by higher manpower costs and adverse foreign exchange variations.
05 · Demand, customers & order book
Where demand is coming from
Consolidated order book reached an all-time high of ₹853,514 crore as of September 30, 2026, reflecting a 15% increase over March 2026.
Group order inflows reached ₹147,665 crore for the quarter, up 28% year-on-year, providing multi-year revenue visibility.
Group secured orders worth Rs. 147,665 crore during Q2 FY27, registering a 28% year-on-year growth led by Hydrocarbon Offshore and Onshore, CarbonLite Solutions, Public Spaces & Airports, and Power Transmission & Distribution.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Secured order inflows of ₹35,509 crore (down 13% y-o-y due to select target order deferments) with an order book of ₹361,368 crore and an EBITDA margin of 5.7%.
Recorded order inflows exceeding 100% growth at ₹78,413 crore driven by Hydrocarbon and CarbonLite Solutions, taking the segment order book to ₹286,888 crore with a 7.4% EBITDA margin.
Secured ₹6,558 crore in orders (down 45% due to solar business deferrals) with customer revenues surging 43% to ₹11,493 crore and an EBITDA margin of 6.0%.
Delivered customer revenues of ₹14,826 crore with an EBITDA margin of 19.5%, experiencing slight moderation due to higher manpower costs and adverse forex variations.
Recorded customer revenues of Rs. 25,133 crore (up 6% YoY) and secured order inflows of Rs. 35,509 crore, with an order book standing at Rs. 361,368 crore.
Achieved customer revenues of Rs. 17,285 crore (up 29% YoY) and order inflows of Rs. 78,413 crore, driven by Hydrocarbon and CarbonLite Solutions wins; order book reached Rs. 286,888 crore.
Posted customer revenues of Rs. 11,493 crore (up 43% YoY) driven by solar job ramp-ups and offshore wind execution; order book stood at Rs. 143,597 crore.
Reported customer revenues of Rs. 4,480 crore (up 34% YoY) and an EBITDA margin of 15.7%, supported by Precision Engineering & Systems export orders.
Recorded customer revenues of Rs. 14,826 crore (up 11% YoY) backed by sustained client spending across the IT&TS sector.
Customer revenues were Rs. 225 crore, reflecting a decline due to fewer residential unit handovers during the quarter; order book stood at Rs. 18,400 crore.
Geography and market mix
International markets accounted for 63% (₹92,375 crore) of total order inflows during Q2 FY27 and 54% of the cumulative ₹8.5 lakh crore order book.
Overseas billings constituted 58% of total consolidated revenues, underlining strong geographic diversification across the Middle East and international markets.
International order inflows for Q2 FY27 stood at Rs. 92,375 crore, contributing 63% to total order intake.
International orders constituted 54% of the overall consolidated order book of Rs. 853,514 crore as of September 30, 2026.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Projects, capex and execution
Cash outflows for purchase of property, plant, equipment, and intangible assets amounted to ₹2,563.06 crore for the half-year ended September 30, 2026.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Portfolio realigned into specialized segments including Energy-Green and Manufacturing & Products to enhance strategic focus, capital allocation efficiency, and operational agility.
Entered into a Business Transfer Agreement and Share Purchase Agreement on August 11, 2026, to transfer its Data Center, Cloud Service, and L&T Network Services business to Vyoma.AI Limited, with completion expected in Q3 FY27.
Management emphasized continued investments in innovation, digital capabilities, and technology-led businesses to support long-term sustainable growth.
09 · Reported developments
What changed operationally
Achieved record quarterly order inflows of ₹147,665 crore, driving total order book to ₹8.5 lakh crore.
Consolidated PAT grew 33% year-on-year to ₹5,202 crore for the quarter.
Achieved highest-ever quarterly order inflows and an all-time high order book of over Rs. 8.5 lakh crore, providing multi-year revenue visibility.
10 · Pressure points & risks
What is not going smoothly
Infrastructure & Utilities and Energy-Green order inflows declined 13% and 45% respectively year-on-year due to target order deferments and solar business timing.
Infrastructure & Utilities order inflow declined 13% YoY due to the deferment of select targeted orders, while Energy - Green order inflow declined 45% YoY on account of deferrals in the Solar business.
11 · Items worth noticing
The line items that can distort a quick read
Assets and liabilities of L&T Metro Rail (Hyderabad) Limited and data center operations continue to be classified as 'Held for Sale' as of September 30, 2026.
Tax expense for Q2 FY27 was recorded at Rs. 1,725.91 crore, comprising current tax of Rs. 2,062.97 crore and deferred tax credit of Rs. 337.06 crore.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Net cash generated from operating activities for the half-year ended September 30, 2026, was ₹5,750.53 crore compared to ₹3,816.13 crore in H1 FY25.
Working capital absorbed liquidity via a ₹7,761.39 crore increase in trade and other receivables, offset by a ₹17,678.72 crore increase in trade and other payables.
Net cash generated from operating activities for the half-year ended September 30, 2026, was Rs. 5,750.53 crore compared to Rs. 3,816.13 crore in the corresponding previous period.
Capital allocation & funding
Total consolidated borrowings stood at ₹69,934.69 crore in non-current liabilities and ₹37,510.91 crore in current liabilities as of September 30, 2026.
The company raised Rs. 500 crores via private placement of tokenised non-convertible debentures (Demat 2.0) on September 9, 2026, with nil deviation in utilization as of September 30, 2026.
Consolidated debt-to-equity ratio stood at 1.02 as of September 30, 2026, and 1.12 when including borrowings classified under 'Held for Sale'.
13 · Management guidance & targets
What management is targeting from here
Management noted that RBI forecasts real GDP growth of 7.1% for FY 2026-27, supported by domestic demand, private investment, and infrastructure spending, despite repo rate increases to 5.50%.
Management noted that India is expected to remain among the fastest-growing major economies, with RBI forecasting real GDP growth of 7.1% for FY 2026-27 supported by domestic demand and infrastructure spending.
14 · Beyond the numbers
What changed beyond the numbers
Reported update
Stock Option Allotment
Allotted 1,65,811 equity shares of face value ₹2 each under employee stock option schemes during the quarter.
Reported update
Auditor Review
The financial results were subjected to a limited review by statutory auditors M S K A & Associates LLP, with unmodified conclusions.
15 · Previous-quarter changes
What changed since the previous quarter
Revenue from operations expanded from ₹67,941.74 crore in Q1 FY27 to ₹78,749.94 crore in Q2 FY27.
Consolidated revenue increased by 15.91% sequentially from Rs. 67,941.74 crore in Q1 FY27 to Rs. 78,749.94 crore in Q2 FY27.
16 · Key Q&A
The quarter, answered directly
What does Larsen & Toubro do?
Larsen & Toubro Limited (L&T) is a prominent Indian multinational conglomerate operating across critical economic pillars including engineering, procurement, and construction (EPC) projects, hi-tech manufacturing, defense, and digital platforms and services.
What is the clearest takeaway from Q2 FY27?
L&T reported consolidated revenues of ₹78,750 crore for the quarter ended September 30, 2026, marking a 16% year-on-year growth driven by accelerated execution progress across its Projects, Products & Manufacturing (PPM) portfolio. International revenues stood at ₹45,870 crore, representing 58% of total quarterly revenues.
What drove revenue or demand?
Accelerated execution across Projects, Products & Manufacturing segments propelled operating revenue to ₹78,750 crore, up 16% year-on-year.
What mattered most for margins or profitability?
Consolidated EBITDA margin stood at 8.7% for Q2 FY27 compared to 10.0% in Q2 FY26, impacted by cost pressures and early-stage execution mix in the CarbonLite Solutions business.
What changed operationally beyond the headline numbers?
Cash outflows for purchase of property, plant, equipment, and intangible assets amounted to ₹2,563.06 crore for the half-year ended September 30, 2026.
What is management guiding or targeting from here?
Management noted that RBI forecasts real GDP growth of 7.1% for FY 2026-27, supported by domestic demand, private investment, and infrastructure spending, despite repo rate increases to 5.50%.
17 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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18 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Completion of Data Center Transfer: Track the completion of the transfer of Data Center, Cloud Service, and network services businesses to Vyoma.AI Limited expected in Q3 FY27.
- 02
Order Book Conversion: Monitor the execution pace and revenue realization from the record ₹8.53 lakh crore order book across international and domestic segments.
- 03
Execution of Order Book: Track the pace of execution across the Rs. 8.5 lakh crore order book, particularly in Hydrocarbon and Infrastructure segments.
- 04
Completion of Disposals: Monitor the completion of the Hyderabad Metro divestment and Data Center business transfer slated for Q3 FY27.
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