Infrastructure major Larsen & Toubro (L&T) on Tuesday reported a 3 per cent year-on-year (Y-o-Y) decline in consolidated net profit at ₹5,325.60 crore for the fourth quarter of 2025-26 (FY26).
The slide in profit during the quarter was on account of exceptional Y-o-Y gains.
There was also limited impact from the West Asia conflict, the company’s management said in a post-results call.
The company’s revenue from operations rose 11 per cent Y-o-Y to ₹82,762.16 crore in Q4FY26.
During the quarter, L&T saw consolidated order inflow of ₹89,772 crore, securing orders across sectors. They included commercial and residential buildings, roads and runways, urban transport, transmission and distribution and the hydrocarbon onshore businesses.
The group’s consolidated order book as on March 31, 2026, stood at ₹7.4 trillion, reflecting a Y-o-Y growth of 28 per cent. International orders constituted 52 per cent of the overall order book.
The board of directors recommended a final dividend of ₹38 per share, subject to the approval of shareholders.
For the full 2025-26, L&T reported 7 per cent Y-o-Y growth in consolidated net profit at ₹16,084 crore.
Revenue from operations for the entire year rose 12 per cent to ₹2.85 trillion.
The company secured orders worth ₹4.35 trillion, registering 22 per cent growth for the year ended March 31, 2026.
During the year, L&T divested full stakes in Nabha Power Ltd and L&T Metro Rail (Hyderabad) Ltd, aligning with the company’s strategy to exit from the concessions portfolio, said chairman and managing director S N Subrahmanyan.
The transactions are expected to close by June 30.
L&T expects the West Asia conflict to weigh on its performance in the first half of 2026–27, citing potential supply chain disruptions and rising input costs, said Subrahmanyan. It anticipates 10-12 per cent growth in revenue and stable margins for FY27.
Segment-wise performance
The core infrastructure segment secured orders of ₹43,477 crore during the quarter ended March 31, registering growth of 26 per cent from the previous financial year.
International orders constituted 67 per cent of the total order inflow for the quarter. As on March 31, the segment order book stood at ₹4.22 trillion, with international orders contributing 48 per cent to the total.
The energy projects segment secured orders valued at ₹21,296 crore during Q4FY26, registering a decline of 34 per cent Y-o-Y largely due to high-base effect. International orders constituted 80 per cent of the total order inflow for the quarter.
The hi-tech manufacturing segment also reported 24 per cent decline in order inflows during Q4, largely due to the deferment of targeted orders.
IT & technology services (IT&TS) segment reported customer revenues of ₹14,078 crore during the quarter, registering a 13 per cent Y-o-Y growth.
The financial services segment reported 22 per cent growth in income from operations at ₹4,669 crore during the quarter.
L&T said the global environment remains challenging characterised by geopolitical issues resulting in disrupted trade conditions.
India’s services sector and digital economy, which are relatively less exposed to disruptions in West Asia, are expected to remain key growth engines, it said.
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