L&T shares climb as Q3 standalone profit jumps 18% YoY to ₹2,832 crore

Larsen & Toubro shares advanced after the engineering giant posted an 18% year-on-year rise in standalone Q3 profit, backed by steady revenue growth and strong order inflows. Despite a one-time provision impacting consolidated earnings, operational performance remained resilient across core business segments.

Shares of Larsen & Toubro (L&T) gained nearly 3 percent after the infrastructure and engineering major reported solid standalone earnings for the third quarter of FY26. The company posted a 17.78 percent year-on-year increase in standalone net profit at ₹2,832.08 crore, supported by an 8.34 percent rise in revenue from operations to ₹37,902.84 crore compared with the same quarter last year.

However, on a consolidated basis, profit after tax (PAT) fell 4.27 percent year-on-year to ₹3,215.11 crore, even as revenue climbed 10.48 percent to ₹71,449.70 crore. The decline in consolidated profit was largely due to a one-time provision of ₹1,191 crore (net of tax and non-controlling interest) toward employee benefits under the new labour codes. This was treated as an exceptional item during the quarter.

Operationally, the company delivered strong performance. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 19 percent to ₹7,417 crore, while EBITDA margin improved to 10.4 percent from 9.7 percent a year earlier. Profit before tax (PBT) surged 34.27 percent to ₹7,160.98 crore, reflecting better execution and cost efficiencies.

L&T also reported robust order inflows during the quarter. The company secured new orders worth ₹1,35,581 crore in Q3 FY26, up 17 percent year-on-year. International orders accounted for ₹66,848 crore, or 49 percent of total inflows. As of December 31, 2025, the group’s consolidated order book stood at ₹7,33,161 crore, marking a 30 percent rise from the previous year, with overseas projects again contributing nearly half.

Segment-wise, the Infrastructure Projects business recorded orders of ₹61,876 crore, up 26 percent, with revenues rising 5 percent to ₹33,700 crore. EBITDA margin in this segment improved to 6.1 percent. The Energy Projects division secured orders worth ₹46,049 crore, up 19 percent, while revenue increased 15 percent to ₹12,726 crore, though margins dipped due to early-stage project execution and cost pressures.

Hi-Tech Manufacturing saw order inflow decline sharply but reported strong revenue growth of 34 percent to ₹3,267 crore, with margins stable at 18.3 percent. IT & Technology Services posted 12 percent revenue growth at ₹13,526 crore, maintaining healthy profitability. Financial Services and the Realty-led “Others” segment also delivered solid gains.

Chairman and Managing Director S.N. Subrahmanyan highlighted that the company achieved its highest-ever quarterly order inflow, with the Projects & Manufacturing portfolio crossing ₹1 lakh crore for the first time. He expressed optimism about sustained growth, supported by domestic capital expenditure, policy support for manufacturing, and global opportunities in infrastructure, AI, and urban development.

Looking ahead, L&T expects India’s resilient economic growth, easing inflation, and government spending on infrastructure and technology to drive demand. The company said it remains well positioned through geographic diversification, disciplined execution, and technology-led initiatives to enhance long-term stakeholder value.