L&T Q3 Results FY26: Record ₹1.36 Trillion Orders Drive 31% Core Profit Growth
- Revenue: ₹714 billion (up 10% YoY)
- Recurring PAT: ₹44 billion (up 31% YoY)
- Reported PAT: ₹32 billion (down 4% YoY)
- Order inflow: ₹1.36 trillion (up 17% YoY)
- Order book: ₹7.33 trillion (up 30% YoY)
- EBITDA margin: 10.4% (up 70 bps YoY)
Quick Answers: L&T Q3 FY26
How were L&T Q3 FY26 results?
Larsen & Toubro reported strong operating performance with 10% revenue growth and 31% rise in recurring profit, driven by record order inflows and improved margins.
Why did reported profit decline despite strong core earnings?
Reported profit declined due to a one-time employee benefit provision under new labour code regulations.
What is the size of L&T’s order book after Q3 FY26?
The consolidated order book reached ₹7.33 trillion, providing multi-year revenue visibility.
Is the infrastructure capex cycle still strong?
Yes. Record order inflows indicate a strong multi-year infrastructure and energy capex cycle.
L&T Q3 Results FY26 Earnings Overview
Larsen & Toubro reported a strong set of operational numbers for the quarter ended December 2025, with double-digit revenue growth and sharp expansion in recurring profitability. The company delivered strong execution across infrastructure, energy, and technology segments, according to the company’s official Q3 FY26 results presentation.
L&T Q3 Results FY26: Consolidated Financial Performance
| Metric | Q3 FY26 | YoY Change |
|---|---|---|
| Revenue | ₹714 billion | +10% |
| EBITDA Margin | 10.4% | +70 bps |
| Recurring PAT | ₹44 billion | +31% |
| Reported PAT | ₹32 billion | −4% |
| Order Inflow | ₹1.36 trillion | +17% |
| Order Book | ₹7.33 trillion | +30% |
Record Order Inflows Signal Multi-Year Visibility
The company reported record quarterly order inflows of ₹1.36 trillion, reflecting strong infrastructure and energy investment momentum. The consolidated order book reached ₹7.33 trillion, up 30% year-on-year, providing multi-year revenue visibility.
International orders accounted for nearly half of the order book, driven by strong demand in the Middle East.
L&T Q3 Results FY26: Segment-Wise Performance
Infrastructure Projects
The infrastructure segment delivered around 5% revenue growth, supported by execution across transportation, heavy civil, and urban infrastructure projects. EBITDA margin improved to about 6.1% due to better project mix.
Energy Projects
The energy segment recorded around 15% revenue growth, supported by hydrocarbon and renewable energy projects. However, margins declined due to cost overruns in certain legacy contracts.
Hi-Tech Manufacturing
This segment delivered strong 34% revenue growth, supported by defence and engineering orders. EBITDA margins remained stable at around 18%.
IT and Technology Services
The IT segment grew around 12% year-on-year, with EBITDA margins improving to nearly 19.7%.
Order Book Composition
- Infrastructure: 58%
- Energy: 34%
- Hi-tech manufacturing: 5%
Geographic mix:
- India: 51%
- Middle East: 37%
- Rest of world: 12%
Profitability Trends
Group EBITDA margin improved by 70 basis points to 10.4%, driven by better execution and segment mix. Recurring net profit rose 31% year-on-year, reflecting strong core operating performance.
Balance Sheet and Cash Flow
- Net debt to equity: 0.54
- Operating cash flow: ₹79 billion
The company’s balance sheet improved due to strong operating cash generation and disciplined capital allocation.
Capital Flow and Sector Implications
This suggests that the infrastructure capex cycle and energy investment cycle are entering a multi-year expansion phase.
L&T Q3 Results FY26: Key Growth Drivers Ahead
These trends are consistent with the broader themes highlighted in the Infrastructure Sector Earnings and Capital Flows analysis.
- Government infrastructure spending, along with strong commercial vehicle demand seen in recent results such as Ashok Leyland Q3 Results
- Urbanisation and transportation projects, along with steel demand trends reflected in Tata Steel Q3 Results
- Global energy transition investments
- Defence manufacturing growth
- Technology and digital services demand
Key Risks to Monitor
- Cost overruns in legacy hydrocarbon projects
- Execution risks in international projects
- Commodity price volatility
- Currency fluctuations
- Delays in project approvals
L&T Q3 Results FY26: Institutional View
L&T delivered a strong operating quarter with double-digit revenue growth, strong recurring profit expansion, and record order inflows. The decline in reported profit is largely accounting-driven and does not reflect operational weakness.
The strong order book provides multi-year revenue visibility, positioning the company as a key beneficiary of the infrastructure and energy capex cycle.
Outlook
With a record order book and strong execution pipeline, the company is expected to maintain steady revenue growth and stable margins over the medium term. Government capex, private investment revival, and global energy spending remain key growth drivers.
Conclusion
L&T’s Q3 FY26 results highlight strong core earnings momentum, record order inflows, and improving margins. The company remains well positioned to benefit from the multi-year infrastructure and energy investment cycle.
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