L&T Q3 FY26 Results: Profit Dips on One-Time Provision, Revenue and Orders Stay Strong

Larsen and Toubro (L&T), India’s largest engineering and construction conglomerate, reported a 4.3 percent year-on-year decline in consolidated net profit for the third quarter ended December 31, 2025. The company posted a net profit of Rs 3,215 crore, impacted by a one-time provision related to employee benefits following the implementation of new labour codes.

The exceptional provision, amounting to Rs 1,191 crore net of tax and non-controlling interest, was classified under exceptional items. Excluding this one-off impact, the company’s underlying performance remained resilient, supported by steady execution across its core businesses.

Revenue from operations for the quarter rose 10.5 percent to Rs 71,450 crore, compared with Rs 64,668 crore in the corresponding period last year. L&T said the growth was driven by improved execution momentum across its Projects and Manufacturing portfolio, covering infrastructure, heavy engineering and technology-led segments. International revenues stood at Rs 38,775 crore, accounting for 54 percent of total revenues during the quarter.

Operating performance also showed strength, with earnings before interest, taxes, depreciation and amortisation increasing 18.5 percent year-on-year to Rs 7,417 crore. EBITDA margins expanded to 10.38 percent from 9.67 percent a year earlier, reflecting operating leverage and improved project execution.

Order inflows during the quarter reached Rs 1.36 lakh crore, marking a 17 percent year-on-year increase. International orders contributed Rs 66,848 crore, nearly half of the total inflows. The company said the orders spanned diverse sectors including power, hydrocarbons, renewable energy, transmission and distribution, and transportation infrastructure.

L&T’s consolidated order book stood at Rs 7.33 lakh crore as of December 31, 2025, registering a 30 percent increase over the previous year. Management said the robust order book provides strong revenue visibility over the medium term.

Commenting on the performance, Chairman and Managing Director S N Subrahmanyan said the quarter marked a milestone, with the company recording its highest-ever quarterly order inflow. He added that sustained capital expenditure, policy support for domestic manufacturing, and growing digital and artificial intelligence investments continue to support long-term growth prospects.