Engineering and infrastructure major Larsen & Toubro (L&T) reported a strong start to FY27, posting a 14% year-on-year increase in consolidated net profit for the April-June quarter, driven by healthy order inflows, steady revenue growth and higher treasury income. The company also retained its full-year growth guidance, signalling confidence in its business outlook despite global uncertainties.
L&T’s consolidated net profit rose to ₹4,122.85 crore during the first quarter from ₹3,617.19 crore a year ago, beating analysts’ expectations. Revenue from operations increased nearly 7% to ₹67,942 crore, supported by strong execution across its infrastructure, manufacturing and services businesses.
A key highlight of the quarter was the company’s robust order inflow. L&T secured fresh orders worth ₹1.08 lakh crore, up 14% from the same period last year. International markets contributed about 56% of the total new orders, reflecting the company’s growing global footprint. Major contracts came from sectors including transportation, buildings, heavy engineering, offshore wind and metals.
The strong order pipeline further strengthened L&T’s order book, providing healthy revenue visibility for the coming quarters. Management said continued investments in infrastructure, energy and industrial projects in India, along with opportunities overseas, are expected to support long-term growth.
Despite the strong earnings, operating margins came under pressure. EBITDA stood at ₹6,116 crore, while the EBITDA margin narrowed to 9% from 9.9% a year earlier. The company attributed the decline to delays in project execution, supply-chain disruptions in West Asia, foreign exchange headwinds in its IT business and higher expected credit-loss provisions.
Executives said geopolitical tensions in the Middle East disrupted the movement of materials and slowed execution of some projects during the quarter. However, they expressed confidence that execution would improve in the coming months as supply chains stabilise.
Higher treasury income and lower finance costs helped offset part of the pressure on operating performance, boosting the company’s bottom line.
The quarterly performance was well received by investors, with L&T shares rising about 3% after the results. Brokerage firms maintained a positive outlook, citing strong order momentum, a healthy project pipeline and sustained government spending on infrastructure.
Analysts believe L&T remains well positioned to benefit from India’s capital expenditure cycle, driven by investments in roads, railways, renewable energy, urban infrastructure and defence. They also highlighted the company’s diversified presence across engineering, technology services, manufacturing and financial services as a key strength.
While some brokerages noted that project execution was slightly weaker than expected during the quarter, they viewed it as a temporary issue rather than a structural concern. They expect execution to gather pace in the second half of the financial year.
Looking ahead, L&T retained its FY27 guidance of 10-12% growth in both revenue and order inflows while expecting margins to remain broadly stable. With a record order book, strong domestic demand and expanding international opportunities, the company remains optimistic about sustaining growth through the rest of the financial year.