Larsen & Toubro Limited (LT)
₹3,627.10 -0.13% last close, 16 Oct
Q2 FY27 results
📅 Next results: 27 Oct 2026 (board meeting)Larsen & Toubro Limited's board meets on 27 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Larsen & Toubro's revenue was ₹67,942 Cr (+6.7% year on year, -17.9% on the previous quarter), and net profit ₹4,988 Cr (+15.5% year on year); the operating margin was 9.0%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹67,942 | +6.7% | -17.9% |
| Operating profit | ₹6,116 | -3.2% | -41.3% |
| Net profit | ₹4,988 | +15.5% | -18.7% |
| EPS (₹) | 29.97 | +14.0% | -22.6% |
| Operating margin | 9.0% | — | — |
LT delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 61.21% of the LT shares traded on NSE were taken to delivery, against the stock's own 20-session average of 60.28%. That is close to its usual level. In LT futures, open interest rose 1.31% while the futures price fell 0.17%: short buildup (new short positions).
Delivery in the last 5 sessions: 53.4% · 61.4% · 56.8% · 55.3% · 61.2%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Larsen & Toubro Limited announced that four internal executives have been promoted to Senior Vice President and categorized under Senior Management Personnel (SMP) effective retroactively from July 1, 2026. The promoted executives include Dr. C Jayakumar (Head - Corporate HR), Mr. Suresh Kumar Narang (Head - CarbonLite Solutions IC), Mr. S Ramkumar (Head - Transportation Infrastructure IC), and Mr. Sriraman T (Head - Residential, Commercial Buildings & Factories IC). All four appointees are long-standing company veterans with tenure ranging between 16 and 38 years at L&T. The promotions reflect standard internal leadership progression across critical operational clusters.
- 4 executives promoted to Senior Vice President and classified as Senior Management Personnel (SMP)
- Promotions effective retroactively from July 1, 2026, pursuant to promotion circulars dated October 6, 2026
- Dr. C Jayakumar has over 38 years of HR experience and joined L&T on May 4, 1988
- Mr. Suresh Kumar Narang joined L&T on February 10, 2010, and has headed L&T Energy-CarbonLite Solutions since April 2026
- Mr. S Ramkumar and Mr. Sriraman T joined L&T on July 24, 1991, and July 1, 1993, respectively
L&T Energy CarbonLite Solutions has secured a Limited Notice to Proceed (LNTP) for the main plant package of the 2x800 MW Chandrapura thermal power plant from DVC CIL Power Private Ltd. Per L&T's classification, a 'Major' order falls in the range of ₹5,000 Cr to ₹10,000 Cr, representing approximately 1.7% to 3.4% of its TTM revenue (₹2,90,137 Cr). The full Notice to Proceed will be issued following environmental clearances and the completion of the LNTP period. L&T's scope encompasses design, engineering, manufacturing, supply, erection, and commissioning of key equipment including Boilers, Turbines, and Generators.
- Order classified as 'Major', corresponding to an order value of ₹5,000 Cr to ₹10,000 Cr
- Project covers the main plant package for a 1,600 MW (2x800 MW) ultra-supercritical thermal plant in Jharkhand
- Awarded by DVC CIL Power Private Ltd, a joint venture between Damodar Valley Corporation and Coal India Ltd
- Scope includes Boilers, Steam Turbines, Generators, Electrostatic Precipitators, and balance of plant works
Larsen & Toubro's Power Transmission & Distribution (PT&D) business vertical has won multiple EPC orders classified as 'Mega', indicating an aggregate value between ₹10,000 Cr and ₹15,000 Cr. At the midpoint of ₹12,500 Cr, this represents ~4.3% of L&T's TTM revenue of ₹290,137 Cr. The wins span 380 kV transmission and substation packages in Saudi Arabia, 132/11 kV substations in the UAE, and a domestic transmission project in Visakhapatnam, India. The contracts bolster L&T's international and domestic grid-strengthening and renewable energy evacuation pipeline.
- Contracts classified as 'Mega', carrying an aggregate value between ₹10,000 Cr and ₹15,000 Cr
- Estimated order value equates to ~3.4% to 5.2% of L&T's TTM revenue of ₹290,137 Cr
- International wins include 380 kV transmission/substations in Saudi Arabia and 132/11 kV substations with cabling in the UAE
- Domestic win secured in Visakhapatnam from a leading private sector developer for transmission lines and substations
Larsen & Toubro Limited (L&T) has announced an extension for the completion of its stake disposal in L&T Metro Rail (Hyderabad) Limited. The estimated completion date has been revised to December 31, 2026, from earlier planned dates following prior intimations on April 29, 2026, and July 1, 2026. All other terms and conditions disclosed earlier remain unchanged. The divestment is part of L&T's ongoing asset-monetization and capital-light strategy to offload the Hyderabad metro concession.
- Target completion date revised to December 31, 2026
- Pertains to disposal of stake in L&T Metro Rail (Hyderabad) Limited
- Follows earlier regulatory intimations dated April 29, 2026, and July 1, 2026
- All other terms and conditions of the transaction remain unchanged
Larsen & Toubro's Transportation Infrastructure business has formally executed two contracts with Dubai's Roads and Transport Authority (RTA) for the Latifa Bint Hamdan Corridor. The orders are classified as one 'large' (₹2,500 to ₹5,000 Cr) and one 'significant' (₹1,000 to ₹2,500 Cr), implying an aggregate contract value between ₹3,500 Cr and ₹7,500 Cr. Both projects, covering bridges, tunnels, interchanges, and cycling tracks across a 12 km corridor, are scheduled for completion by the end of 2028. At the midpoint of ₹5,500 Cr, the win represents ~1.9% of L&T's TTM revenue of ₹2,90,137 Cr.
- Secured twin contracts classified as one 'large' (₹2,500 to ₹5,000 Cr) and one 'significant' (₹1,000 to ₹2,500 Cr)
- Aggregate order value estimated between ₹3,500 Cr and ₹7,500 Cr (~1.2% to 2.6% of TTM revenue)
- Projects cover development of the 12 km Latifa Bint Hamdan Corridor with completion scheduled by end of 2028
- Corridor designed to accommodate ~16,000 vehicles per hour and over 130,000 trips daily
Larsen & Toubro's wholly owned subsidiary, L&T Semiconductor Technologies (LTSCT), unveiled 40 products at SEMICON India 2026. The portfolio includes LTSCT's first 1200V Silicon Carbide (SiC) MOSFET platform designed for EV chargers and microgrids, alongside a taped-out BLDC motor controller. LTSCT also showcased four indigenously designed modules for smart metering, automotive, and digital payments. While financially non-material in the immediate term against L&T's TTM revenue of ₹290,137 Cr, it represents concrete R&D execution for L&T's new fabless semiconductor vertical.
- Unveiled 40 products at SEMICON India 2026 under LTSCT
- Introduced first 1200V Silicon Carbide (SiC) MOSFET platform for power conversion
- Taped out an integrated, fully designed-in-India BLDC motor controller
- Showcased 4 indigenously designed Connectivity & RF modules for metering, auto, and payments
Larsen & Toubro announced that SEBI-registered provider Niche99 ESG Ratings assigned the company an ESG score of 63, placing it in the 'Performer' category on September 15, 2026. The rating was prepared independently using public domain data without an active engagement by L&T. The disclosure was made pursuant to Regulation 30 compliance following communication received on September 16, 2026.
- Niche99 ESG Ratings assigned an ESG score of 63 to L&T
- Categorized under the 'Performer' category effective September 15, 2026
- Unsolicited assessment independently prepared using publicly available domain data
- Information received by the company on September 16, 2026, and disclosed on September 17, 2026
Larsen & Toubro Limited has informed the exchanges about its participation in multiple analyst and institutional investor conferences scheduled between September 21 and September 24, 2026. The engagements include the CLSA Investor Forum in Hong Kong (Sept 21), J.P. Morgan India Conference in Mumbai (Sept 21), BOFA Asia Pacific Conference in Hong Kong (Sept 22), and a Goldman Sachs Non-Deal Roadshow in Singapore (Sept 23-24). The company stated that presentations will follow existing materials already available on public exchange websites. These meetings are routine investor outreach interactions with no unpublished price-sensitive information shared.
- CLSA Investor Forum 2026 attendance in Hong Kong on 21st September 2026 at 06:30 AM IST
- J.P. Morgan India Conference scheduled in Mumbai on 21st September 2026 at 09:00 AM IST
- BOFA 2026 Asia Pacific Conference participation in Hong Kong on 22nd September 2026 at 06:30 AM IST
- Goldman Sachs Singapore NDR scheduled across 23rd & 24th September 2026 at 06:30 AM IST
- All interactions will be in-person with investor groups using existing public presentations
Larsen & Toubro Limited has approved the allotment of 28,903 equity shares under its Employee Stock Option Schemes following a Nomination & Remuneration Committee circular resolution on September 15, 2026. The newly issued shares rank pari-passu with existing equity shares. Given the company's market cap of Rs 6,26,627 Cr, the total value of these newly alloted shares is approximately Rs 11.13 Cr (based on the market price of Rs 3,850.7), representing a negligible dilution of ~0.002%. This is a standard administrative share issuance for employee compensation.
- Allotment of 28,903 equity shares approved on September 15, 2026
- Allotment conducted pursuant to exercise of options under Employee Stock Option Schemes
- The new shares rank pari-passu with existing equity shares in all respects
Larsen & Toubro Limited (L&T) has allotted 50,000 rated, unsecured, redeemable, non-convertible debentures (NCDs) aggregating to ₹500 crore on a private placement basis. The 3-year NCDs carry an annual coupon rate of 7.40% and will mature on September 9, 2029. In a novel structure, the NCDs are issued in tokenised form on NSDL's Distributed Ledger Technology (DLT) platform and will be listed on the NSE debt segment. The issue size is minimal relative to L&T's scale, representing ~0.17% of TTM revenue (₹2,90,137 crore) and ~3.95% of existing debt (₹12,658 crore).
- Allotted 50,000 tokenised NCDs of face value ₹1,00,000 each aggregating to ₹500 crore
- Coupon fixed at 7.40% per annum, payable annually
- 3-year tenure with maturity scheduled for September 9, 2029
- Issued via private placement on NSDL's Distributed Ledger Technology (DLT) platform for listing on NSE debt segment
Larsen & Toubro has raised ₹500 crore through 3-year tokenised bonds under SEBI's newly introduced blockchain-based tokenisation framework. The issuance utilizes Distributed Ledger Technology (DLT) with fund settlements executed via Central Bank Digital Currency (CBDC) wallets. Financially, the ₹500 crore fundraise is minor compared to L&T's total debt of ₹12,658 crore (~3.9%) and market cap of ₹6,47,668 crore (~0.08%). The move serves primarily as a technological milestone in treasury operations rather than a material capital event.
- Raised ₹500 crore becoming India's first private corporate to issue tokenised bonds
- Bonds carry a tenure of 3 years
- Issued under SEBI's Distributed Ledger Technology (DLT) framework
- Fund settlement facilitated through Central Bank Digital Currency (CBDC) wallet
Larsen & Toubro's Energy Hydrocarbon Offshore vertical has secured a 'Large' contract from Oil & Natural Gas Corporation (ONGC). Per L&T's standard classification, a 'Large' project is valued between ₹2,500 Cr and ₹5,000 Cr, representing approximately 0.9% to 1.7% of L&T's TTM revenue of ₹2,90,137 Cr. The scope involves EPCIC of three well-head platforms, one riser platform, subsea pipelines/cables, and brownfield modifications off India's west coast for the ADR-I and NLM-14 projects. This order further supports the company's robust order book, which stood at ₹6,67,041 Cr as of September 2025.
- Order classified as 'Large', indicating a value range of ₹2,500 Cr to ₹5,000 Cr
- Client is Oil & Natural Gas Corporation (ONGC) for the ADR-I and NLM-14 offshore developments
- Scope covers EPCIC of 3 new well-head platforms and 1 riser platform along with subsea infrastructure
- Order represents roughly 0.9%–1.7% of TTM revenue (₹2,90,137 Cr)
CRISIL Ratings Limited on September 3, 2026, reaffirmed Larsen & Toubro Limited's Non-Convertible Debentures (NCDs) rating at 'CRISIL AAA' with a 'Stable' outlook. The agency also reaffirmed the ratings on the company's bank loan facilities and fixed deposits at 'CRISIL AAA/Stable' and commercial paper at 'CRISIL A1+'. The top-tier credit rating reflects L&T's dominant market position in the EPC sector, low gearing (Debt/Equity of 0.17x), and strong financial flexibility.
- CRISIL assigned/reaffirmed NCD rating at 'CRISIL AAA/Stable' on September 3, 2026
- Bank loan facilities and fixed deposits reaffirmed at 'CRISIL AAA/Stable'
- Commercial paper rating reaffirmed at the highest short-term tier of 'CRISIL A1+'
India Ratings & Research has reaffirmed Larsen & Toubro's Non-Convertible Debentures (NCDs) rating at 'IND AAA' with a Stable Outlook. Additionally, the rating agency affirmed the company's Commercial Paper rating at the highest short-term tier of 'IND A1+'. The affirmation reflects L&T's premier market position in EPC turnkey execution, robust order book, and low balance sheet leverage with a Debt-to-Equity ratio of 0.17.
- Non-Convertible Debentures (NCDs) rating affirmed at 'IND AAA' with a Stable Outlook
- Commercial Paper credit rating affirmed at 'IND A1+'
- Rating action confirmed by India Ratings & Research Private Limited on September 1, 2026
The National Company Law Tribunal (NCLT), Mumbai Bench, has admitted the Joint Company Scheme Petition for the Scheme of Arrangement between Larsen & Toubro Limited (Transferor) and L&T Realty Properties Limited (Transferee). The order, passed on August 18, 2026, and uploaded on September 1, 2026, schedules the final hearing of the petition for October 6, 2026. Prior steps, including convening the equity shareholders' meeting and issuing notices to creditors, have been completed pursuant to earlier NCLT directions. Statutory notices are now being served to regulators, including the Regional Director (MCA), RoC Mumbai, and Income Tax authorities, with a 30-day response window.
- NCLT Mumbai Bench admitted the Scheme of Arrangement petition between L&T and L&T Realty Properties Limited via order dated August 18, 2026.
- Next hearing date for the petition is scheduled for October 6, 2026.
- Notices issued to statutory authorities under Section 230(5) with a 30-day window to submit representations.
- Newspaper advertisements directed in Business Standard (English) and Loksatta (Marathi) in Mumbai editions.
Financial Performance
Revenue Growth by Segment
Group revenue grew 10% YoY to INR 68,000 Cr (Rs 680 Bn) in Q2 FY26. Segment growth: Energy Projects grew 48% (INR 13,082 Cr), Hi-Tech Manufacturing grew 33% (INR 2,754 Cr), IT & Technology Services grew 13% (INR 13,274 Cr), and Financial Services grew 9% (INR 4,166 Cr). Infrastructure Projects revenue was subdued/flat at INR 31,759 Cr, while Others (Realty/CE) declined 14% to INR 1,420 Cr.
Geographic Revenue Split
International revenue contributed 56% (INR 38,080 Cr) of total revenue in Q2 FY26, up from 52% in Q2 FY25. Domestic revenue contributed 44% (INR 29,920 Cr). For H1 FY26, international revenue was 54% of the total.
Profitability Margins
Group EBITDA margin was 10.0% in Q2 FY26, down 30 bps from 10.3% YoY. Net Profit (PAT) grew 16% YoY to INR 3,900 Cr (Rs 39 Bn). Return on Equity (ROE) improved 110 bps to 17.2% on a trailing 12-month basis.
EBITDA Margin
Group EBITDA margin is 10.0%. Segment EBITDA margins: Hi-Tech Manufacturing 14.7% (up 190 bps), Infrastructure 6.3% (up 30 bps), IT & TS 20.2% (down 80 bps), and Energy Projects 7.3% (down 160 bps). The Projects & Manufacturing (P&M) portfolio margin improved to 7.8% from 7.6% YoY.
Capital Expenditure
Net investment in fixed assets (including intangibles and investment property) for H1 FY26 was INR 2,430 Cr (Rs 24.3 Bn), a significant increase from INR 1,410 Cr in H1 FY25.
Credit Rating & Borrowing
L&T secured a USD 700 million sustainability-linked facility from a commercial bank. Group finance costs decreased 14% YoY to INR 760 Cr (Rs 7.6 Bn) in Q2 FY26 due to lower rates and average borrowing levels at the Parent company.
Operational Drivers
Raw Materials
Manufacturing, Construction and Operating (MCO) expenses represent 64.1% of revenue (INR 43,590 Cr). Staff costs represent 19.1% of revenue (INR 12,990 Cr). Specific materials include steel, cement, and specialized components for EPC and Hi-Tech Manufacturing.
Import Sources
Not specifically disclosed, but 49% of the order book is international, primarily sourced for projects in the Middle East and India.
Key Suppliers
Not disclosed in available documents; however, key clients include National Oil Companies (NOCs) in the Middle East.
Capacity Expansion
The Order Book expanded 31% YoY to INR 667,041 Cr (Rs 6.67 trillion) as of September 2025, providing strong revenue visibility. Precision Engineering prospects are valued at INR 25,100 Cr.
Raw Material Costs
MCO expenses grew 10% YoY to INR 43,590 Cr, strictly in line with activity levels. Procurement strategies focus on managing international project execution and cost overruns in domestic hydrocarbon projects.
Manufacturing Efficiency
Operational efficiencies aided margin improvement in Heavy Engineering. Precision Engineering margins (PES) were lower due to a larger share of early-stage jobs and development project costs.
Logistics & Distribution
Not disclosed as a specific percentage of revenue; however, SG&A expenses (INR 2,900 Cr) were reflective of increased operations and forex variations.
Strategic Growth
Expected Growth Rate
15%
Growth Strategy
Growth will be driven by a ramp-up in execution during H2 FY26, which is seasonally busier for Infrastructure. The strategy includes securing 'ultra-mega' hydrocarbon opportunities in the Middle East, capitalizing on a INR 10.4 trillion prospect pipeline, and achieving 98% retailization in the Financial Services loan book. Newly incubated businesses in Semiconductor design, Data Centers, and Digital Platforms are also expected to scale.
Products & Services
EPC projects for Infrastructure and Energy, Hydrocarbon plants, Precision Engineering systems, Heavy Engineering equipment, Residential and Commercial Realty units, and Retail Financial Loans.
Brand Portfolio
L&T, LTIMindtree, LTTS, L&T Finance, Nabha Power, CarbonLite Solutions.
New Products/Services
CarbonLite Solutions (CLS) for sustainable energy, Semiconductor design, Data Centers, and Digital Platforms. CLS revenue growth is reflective of a higher order book.
Market Expansion
Expansion is focused on the Middle East for Hydrocarbon projects and the Indian private sector for high-tech manufacturing facilities (Semiconductor fabs, Solar PV plants).
Market Share & Ranking
Not disclosed as a specific percentage, but the company is pursuing 'ultra-mega' opportunities, indicating a dominant market position in EPC.
Strategic Alliances
In-principle understanding with the Government of Telangana for the takeover of debt and equity of L&T Metro Rail Hyderabad SPV. JV/Associates PAT share was a loss of INR 10 Cr in Q2 FY26.
External Factors
Industry Trends
The industry is shifting toward sustainable energy (CarbonLite) and private sector demand for high-tech infrastructure (Data Centers, fabs). L&T is positioning for this via its 'Lakshya 2026' plan and new business incubations.
Competitive Landscape
Faces domestic and international competition in EPC. Energy segment margins are currently impacted by 'competitively priced' projects nearing completion.
Competitive Moat
Moat is sustained by a massive INR 6.67 trillion order book, a robust risk management system, and cost leadership through capital efficiency (10.2% NWC/Sales). Diversification across P&M and Services provides a hedge against sector-specific cycles.
Macro Economic Sensitivity
Sensitive to Indian GDP growth, fiscal deficits, and economic growth in target export countries. Interest rate prevailing in the economy affects fiscal costs.
Consumer Behavior
Shift toward retail loans in the Financial Services segment, achieving 98% retailization ahead of 2026 targets.
Geopolitical Risks
High exposure to the Middle East (49% of order book). Geopolitics are interrogated internally to manage risk exposure.
Regulatory & Governance
Industry Regulations
Operations are subject to government policies, fiscal deficits, and investment regulations in India and international target countries.
Environmental Compliance
Sustainability-linked facility of USD 700 million is tied to KPIs for GHG emission intensity and freshwater withdrawal.
Taxation Policy Impact
Tax expense for Q2 FY26 was INR 1,650 Cr (Rs 16.5 Bn), representing a 14% increase YoY.
Legal Contingencies
A litigation-related provision in respect of Nabha Power impacted the Development Projects segment margin in Q2 FY26. Total JV/Associate PAT share was INR -10 Cr.
Risk Analysis
Key Uncertainties
3% of the total order book is classified as slow-moving. Cost overruns in Energy projects nearing completion are expected to persist in the near term.
Geographic Concentration Risk
49% of the order book is concentrated in international markets, primarily the Middle East. 56% of Q2 revenue was international.
Third Party Dependencies
Dependency on government allocations for projects like the Jal Jeevan Mission (Water segment) affects execution momentum.
Technology Obsolescence Risk
Mitigated by investments in Semiconductor design, Data Centers, and Digital Platforms to stay ahead of technology shifts.
Credit & Counterparty Risk
Financial Services segment maintains a Provision Coverage Ratio (PCR) of 70% and a healthy RoA of 2.41%.
