L&T Q4 FY26 profit dips 3% to ₹5,326 crore; order book hits record ₹7.4 lakh crore
Synopsis
L&T's headline profit dipped 3% in Q4 FY26, but the real story is its record ₹7.4 lakh crore order book — up 28% year-on-year — with international orders driving over half the pipeline. Recurring profit actually grew 5%, suggesting the decline is a base-effect distortion, not a structural weakness.
Key Takeaways
L&T posted consolidated net profit of ₹5,326 crore in Q4 FY26 , down 3 per cent from ₹5,497 crore in Q4 FY25.
The decline reflects a high base effect — Q4 FY25 included an exceptional gain of ₹475 crore ; recurring PAT rose 5 per cent to ₹5,289 crore .
Quarterly revenue grew 11 per cent to ₹82,762 crore ; EBITDA up 5 per cent to ₹8,610 crore .
Order book hit a record ₹7,40,327 crore as of 31 March 2026 , up 28 per cent year-on-year .
Full-year FY26 order inflows rose 22 per cent to ₹4,35,590 crore ; revenue up 12 per cent to ₹2,85,874 crore .
Board recommended a final dividend of ₹38 per share , subject to shareholder approval.
Larsen & Toubro (L&T) reported a 3 per cent decline in consolidated net profit to ₹5,326 crore for the March quarter (Q4 FY26), according to its stock exchange filing. The dip was largely a base effect — the year-ago quarter had included an exceptional gain of ₹475 crore, which inflated the Q4 FY25 figure of ₹5,497 crore. Strip out that one-time item, and recurring profit after tax actually rose 5 per cent to ₹5,289 crore.
Revenue and Operational Performance
Revenue for the quarter climbed 11 per cent year-on-year to ₹82,762 crore, driven by steady execution across business segments. International revenues contributed ₹43,747 crore, accounting for 53 per cent of total revenue — underscoring the company's deepening global footprint.
EBITDA rose 5 per cent to ₹8,610 crore, though margins moderated to 10.4 per cent from 11 per cent a year earlier, reflecting cost pressures and a shift in execution mix across projects.
Record Order Book Signals Strong Pipeline
Order inflows during the quarter remained robust at ₹89,772 crore, with international orders accounting for a significant 67 per cent share. The company's consolidated order book reached a record ₹7,40,327 crore as of 31 March 2026, a 28 per cent rise year-on-year — providing strong revenue visibility for the coming years. This is the highest order backlog in L&T's history, and notably, more than half of it originates from outside India.
Full-Year FY26 Highlights
For the full financial year FY26, L&T reported a 22 per cent increase in order inflows to ₹4,35,590 crore, while full-year revenue grew 12 per cent to ₹2,85,874 crore. The board has recommended a final dividend of ₹38 per share, subject to shareholder approval.
Management Outlook
Management stated that the company ended the year on a strong note, citing broad-based performance across its businesses. The company reiterated its strategic focus on international opportunities, technology-driven growth, and disciplined capital allocation. With a record order backlog and international momentum, L&T enters FY27 with one of the most visible earnings pipelines among India's large-cap engineering majors.
Point of View
But it is a statistical artefact of last year's exceptional gain — not a sign of operational stress. The more consequential number is the ₹7.4 lakh crore order book, which gives L&T earnings cover well into FY28. The real question is margin: at 10.4 per cent EBITDA, L&T is running below its own historical band, and with international projects — now over half the book — carrying execution complexity, margin recovery is not guaranteed. If cost pressures persist into FY27, the record backlog could mask a quiet profitability squeeze.
NationPress
9 Aug 2026
Frequently Asked Questions
Why did L&T's Q4 FY26 profit fall despite strong revenue growth?
L&T's net profit declined 3 per cent to ₹5,326 crore primarily due to a high base effect — Q4 FY25 had included an exceptional one-time gain of ₹475 crore. Excluding that gain, recurring profit after tax actually grew 5 per cent to ₹5,289 crore.
What is L&T's order book as of March 2026?
L&T's consolidated order book stood at a record ₹7,40,327 crore as of 31 March 2026, up 28 per cent year-on-year. International orders account for a significant share of the pipeline, reflecting the company's growing global presence.
How did L&T perform for the full financial year FY26?
For the full year FY26, L&T reported a 22 per cent increase in order inflows to ₹4,35,590 crore and a 12 per cent rise in revenue to ₹2,85,874 crore, indicating broad-based business momentum across segments.
What dividend has L&T recommended for FY26?
L&T's board has recommended a final dividend of ₹38 per share for FY26, subject to approval by shareholders at the upcoming annual general meeting.
Why did L&T's EBITDA margins fall in Q4 FY26?
EBITDA margins moderated to 10.4 per cent from 11 per cent a year earlier, due to cost pressures and changes in the execution mix across projects. Management has not provided a specific timeline for margin recovery.
