Larsen & Toubro (LT) Q3 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly order inflow of INR 1,356 billion (₹135,581 crore), up 17% YoY, with strong domestic and international momentum; order book reached INR 7.33 trillion (₹733,161 crore), up 30% YoY, with 49% international share.

• Group revenues grew 10% YoY to INR 714 billion (₹71,450 crore), with recurring PAT up 31% YoY to INR 44 billion (₹4,406 crore); reported PAT declined due to a one-time INR 11.9 billion (₹1,191 crore) labour code provision.

• Net working capital to revenue ratio improved to 8.2%, a 450 bps YoY improvement.

• Return on equity improved to 16.5%, up 40 bps YoY.

Financial highlights

• Group EBITDA margin (excl. other income) improved to 10.4% from 9.7% YoY, driven by operational efficiencies.

• Cash flow from operations (excluding Financial Services) at INR 79 billion for the quarter, up from INR 21 billion YoY; 9M FY26 at INR 184 billion, up from INR 83 billion YoY.

• Projects and manufacturing order inflow at INR 1,164 billion, up 18% YoY; domestic up 30%, international up 7%.

• Return on equity at 16.5%, up 40 bps YoY; excluding labour code impact, ROE at 17.6%.

• Exceptional item of INR 11.9 billion (₹1,191 crore) due to one-time provision for employee benefits from new labour codes.

Outlook and guidance

• Expects to exceed 10% order inflow guidance for FY26, driven by strong nine-month performance and robust prospects pipeline of INR 5.9 trillion.

• Confident of achieving 15% full-year revenue growth, with Q4 expected to see customary execution ramp-up.

• Projects and manufacturing EBITDA margin target of 8.5% for FY26 remains intact.

• Revised net working capital to revenue target to around 10% by year-end.

• Company aims to capitalize on emerging opportunities through geographic expansion, efficient execution, and focus on cost and cash flow management.