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News Topical, Digital Desk : Larsen & Toubro (L&T) has reported strong results for the September quarter (Q2FY26). The company's consolidated profit came in at ₹3,926 crore, compared to market expectations of ₹3,750 crore. This means the company has outperformed expectations on the profit front. In the same quarter last year, the company's profit was ₹3,395 crore. This represents a year-on-year (YoY) increase of approximately 15.6%.
However, the company lagged slightly on the revenue front. For the quarter, L&T's revenue was ₹67,983 crore, compared to market expectations of ₹69,950 crore.
Revenue in the same quarter last year was ₹61,554 crore, representing a year-over-year increase of approximately 10.5%, but falling short of expectations. EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) was ₹6,806.5 crore, compared to expectations of ₹6,980 crore. This also showed a slight underperformance at the operating level. This directly impacted EBITDA margins, which fell to 10%—a slight decline compared to last year's 10.4%. This level was in line with market expectations, but a slight weakness compared to last year was clearly visible. Both the company's revenue and profits improved year-over-year , but operating efficiency was slightly impacted. Margins remained under pressure due to delays in project execution and some input costs. However, the order book and strong demand in the infrastructure, power, and manufacturing segments are supporting the company's future. Brokerages will now monitor the company's margin recovery and order inflow. A positive sign for the market is that the company has surpassed expectations in terms of profitability, which indicates that the core business remains strong. What it means for investors: In a heavily leveraged stock like L&T, quarterly results set the trend. Improved profitability will maintain investor confidence, but weak revenue and margins demand improvement in the coming quarters. If the company's order book and project pipeline remain strong, positive sentiment on the stock could persist in the long term. The company says it expects continued high capex (capital expenditure) spending in key markets like India and the Middle East. This means that in the coming years, these sectors will see increased investment in infrastructure, power, and energy projects, which will continue to generate new projects and orders for the company. This quarter, the company received orders worth ₹1,15,784 crore, of which 65%, or ₹75,561 crore, came from the international market. This demonstrates L&T's continued strengthening global reach and project execution capabilities. The company's consolidated order book has reached ₹6,67,047 crore—one of its highest levels ever. Such a large order book indicates strong revenue visibility for the company in the coming years.
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