Mumbai, July 29, 2025 :
A strong start into FY 26
Robust growth across all key parameters
Order Inflow ↑33%, Revenue ↑16%, PAT ↑30%
Larsen & Toubro received orders worth ₹ 94,453 crore at the Group level during the quarter ended June 30, 2025. The Company registered a y-o-y growth of 33% aided by a strong ordering momentum witnessed across diverse businesses. During the quarter, orders were received across multiple businesses like Thermal BTG, Renewables, Power Transmission & Distribution, Hydel, Non-Ferrous Metals, Offshore & Onshore businesses of Hydrocarbon, Commercial and Residential projects. International orders stood at ₹ 48,675 crore, accounting for 52% of the total order inflow.
The consolidated order book of the group as on June 30, 2025, was at ₹ 612,761 crore, a growth of 6% over Mar’25. The share of international orders is 46%.
The Company achieved consolidated revenues of ₹ 63,679 crore for the quarter ended June 30, 2025 registering a y-o-y growth of 16% with healthy execution witnessed in its key Projects & Manufacturing (P&M) portfolio. International revenues during the quarter were at ₹ 32,994 crore which constituted 52% of the total revenues.
The Company, for the quarter ended June 30, 2025, posted a Consolidated Profit After Tax (PAT) of ₹ 3,617 crore, registering a y-o-y growth of 30%.
Commenting on the results, S.N. Subrahmanyan, Chairman and Managing Director said: “This quarter we have performed well across all financial parameters. At a Group level, we registered once again, the highest order inflow for Q1 ever. Besides improved performance on all P&L parameters, the return ratios have also moved higher.
The projects and manufacturing businesses of the Company continues to perform well.
The record order book of ₹ 6 lakh crore+ is a testimony of our proven expertise in the domains of engineering, construction, manufacturing, and project management.
This being a terminal year of our Lakshya’26 five-year plan, I am pleased to say that so far, our journey in the last four years has been good and we are on track to achieve/surpass the specified targets across all financial parameters.
Further, our new-age businesses like Semiconductor, Data Centers, Green Energy and Digital Platforms have been successfully incubated in the current strategic plan and we expect these businesses to contribute meaningfully over the next 5 years. Besides enabling portfolio level diversification, these businesses reinforce our presence in technology driven sectors and to stay future ready.”
Infrastructure Projects Segment
The Infrastructure Projects segment secured order inflow of ₹ 41,024 crore, during the quarter ended June 30, 2025, registering a moderate growth of 2% over the corresponding quarter of the previous year. International orders constituted 69% of the total order inflow of the segment during the quarter aided by receipt of major orders in the Renewables and Transmission & Distribution businesses.
The segment order book stood at ₹ 370,390 crore as on June 30, 2025, with the share of international orders at 42%.
For the quarter ended June 30, 2025, customer revenues were at ₹ 28,757 crore, registering a y-o-y growth of 7%. International revenues constituted 40% of the total customer revenues of the segment during the quarter.
The EBITDA margin of the segment during the quarter ended June 30, 2025 was at 5.7%, in line with the corresponding quarter of the previous year.
Energy Projects Segment
The Energy Projects segment secured orders valued at ₹ 31,420 crore during the quarter ended June 30, 2025, registering a more than 100% growth on y-o-y basis with receipt of multiple BTG packages in the CarbonLite Solutions business. International order inflows constituted 24% of the total order inflow during the quarter.
The segment order book stood at ₹ 186,401 crore as on June 30, 2025, with the international order book constituting 65% of the total.
For the quarter ended June 30, 2025, the customer revenues stood at ₹ 12,470 crore registering a robust growth of 47% y-o-y led by an execution ramp up in international projects of the Hydrocarbon business. International revenues constituted 71% of the total customer revenues of the segment during the quarter.
The segment’s EBITDA margin stood at 7.3% for the quarter ended June 30, 2025, compared to 8.7% in the corresponding quarter of the previous year. Margin variation is reflective of the varying project execution status within the portfolio.
Hi-Tech Manufacturing Segment
The segment secured orders valued at ₹ 1,889 crore for the quarter ended June 30, 2025, a 49% decline over the corresponding quarter of the previous year primarily attributable to a high base in the Precision Engineering & Systems (PES) business. Export orders constituted 52% of the total order inflow of the segment during the quarter.
The order book of the segment was at ₹ 39,162 crore as on June 30, 2025, with the share of export orders at 12%.
For the quarter ended June 30, 2025, customer revenues were at ₹ 3,227 crore registering a growth of 75% y-o-y attributable to improved execution in both the Heavy Engineering and Precision Engineering & Systems businesses. International revenues constituted 25% of the total customer revenues for the segment during the quarter.
The EBITDA margin of the segment was at 15.1% for the quarter ended June 30, 2025 which was lower compared to the previous year at 17.4%. The reduction in segment margin is primarily attributable to key orders in the PES business that are currently in the early stages of execution and hence do not accrue margin.
IT & Technology Services (IT&TS) Segment
The segment recorded customer revenues of ₹ 12,619 crore for the quarter ended June 30, 2025, registering a y-o-y growth of 10%, largely in line with the cautious IT&TS spending across the developed world. International billing contributed 92% of the total customer revenues.
The EBITDA margin for the segment was lower at 19.5% for the quarter ended June 30, 2025 compared to 20.0% in the corresponding quarter of the previous year. The decline is largely attributable to incremental costs incurred towards the newly incubated businesses.
Financial Services Segment
The segment recorded income from operations at ₹ 3,971 crore during the quarter ended June 30, 2025, registering y-o-y growth of 8% mainly attributable to the focused higher disbursements in the retail business.
The total Loan Book as of June 2025 is at ₹ 102,314 crore grew by 5% as compared with March 2025 at ₹ 97,762 crore. The Retail loan book now constitutes 98% of the total loan book as on June 30, 2025.
The segment PBT for the quarter ended June 30, 2025 at ₹ 943 crore, is in line with corresponding quarter of the previous year.
Development Projects Segment
The segment recorded customer revenues of ₹ 1,242 crore during the quarter ended June 30, 2025 registering decline of 6% y-o-y largely attributable to lower Plant Load Factor (PLF) at the Nabha thermal power plant.
The segment EBIT for the quarter ended June 30, 2025 at ₹ 143 crore remains in line with the corresponding quarter of the previous year.
“Others” Segment
“Others” segment comprises (a) Realty (b) Industrial Valves (c) Construction Equipment & Mining Machinery and (d) Rubber Processing Machinery.
Customer revenues of the segment during the quarter ended June 30, 2025 was at ₹ 1,393 crore aided by higher handover of residential units in the Realty business, registering a modest growth of 1% y-o-y.
Export sales constituted 15% of the total customer revenues of the segment during the quarter, majorly relating to Industrial Valves business.
The EBITDA margin for the segment was higher at 32.9% for the quarter ended June 30, 2025 compared to 23.4% in the corresponding quarter of the previous year. A higher contribution from Realty and a favorable sales mix in Industrial Machinery & Products aids margin improvement.
Note:
The key parameters of the Group and Segment Performance for the quarter ended June 30, 2025, are shown in Annexure 1.
Segment composition is provided in Annexure 2.
Outlook
The Indian economy demonstrated resilience in an otherwise volatile quarter, punctuated by trade-tariff stresses and conflicts in the West Asia. Strong balance sheets, political /policy stability, and demographic & digitalization opportunities continue to drive domestic growth. Key high-frequency indicators in the services and manufacturing sectors continue to signal broad-based growth. The easing of inflation, a favorable monsoon and the RBI’s 50 bps reduction in the repo rate at its recently concluded June meeting could further aid the growth momentum in the economy.
Global economic activity is expected to remain subdued with an uneven momentum. Regional growth patterns have become more fragmented, as geopolitical and policy uncertainties reshape the economic outlook.
The GCC, led by Saudi Arabia, is likely to sustain the investment momentum in both the physical and digital infrastructure of the region. However, any further escalation of conflicts in the region could increase the uncertainty for financial markets, energy prices, investments, and global trade flows.
Given the prevailing economic environment, the Company remains focused on sustained execution of its large order book, scaling up the new businesses and capitalize on the emerging opportunities. The Company continues to pursue its stated objective of delivering profitable growth through its diverse business portfolio and multi geography presence.
Background:
Larsen & Toubro is a USD 30 billion Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing, and Services, operating across multiple geographies. A strong, customer–focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for eight decades.
CFS AD Q1 FY26