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Infrastructure major Larsen & Toubro (L&T) reported a marginal decline in consolidated profitability for the December quarter of FY26, even as revenue growth remained robust and the order book expanded sharply. The company posted a consolidated profit after tax of INR 3,215 crore, down 4.2% year-on-year, primarily due to higher operating expenses during the quarter. Revenue from operations, however, increased to INR 71,450 crore from INR 64,668 crore in the year-ago period, reflecting strong execution across projects. Total expenses rose to INR 65,729.76 crore, exerting pressure on margins. Meanwhile, L&T's consolidated order book stood at INR 7.33 lakh crore at the end of December, marking a 30% annual increase, with international projects accounting for nearly half of the total.
Larsen & Toubro (L&T) reported a 4.2% year-on-year decline in consolidated profit after tax for the December quarter of FY26, as higher expenses offset strong revenue growth during the period. According to a regulatory filing made earlier this week, the engineering and infrastructure major posted a consolidated profit of INR 3,215 crore for the October-December quarter, compared with INR 3,359 crore in the corresponding quarter of the previous financial year. Advertisement
Despite the moderation in profitability, the company delivered a healthy top-line performance. Revenue from operations during the quarter rose to INR 71,450 crore, up from INR 64,668 crore a year earlier, reflecting sustained execution momentum across its diversified portfolio of engineering, construction and manufacturing businesses.
The decline in net profit was primarily attributed to a rise in costs. Total expenses for the quarter increased to INR 65,729.76 crore, compared with INR 60,302.62 crore in the year-ago period, indicating margin pressures amid a high-volume execution environment.
L&T's order inflows and backlog continued to strengthen during the period. As of the end of December, the group's consolidated order book stood at INR 7.33 lakh crore, registering a 30% increase compared to December 2024. International projects accounted for 49% of the total order book, underscoring the company's growing global footprint and diversified revenue base.
Management indicated that the broader economic and infrastructure ecosystem remains supportive. The company expressed optimism that pro-growth momentum would continue, supported by sustained capital expenditure and further policy initiatives aimed at strengthening domestic manufacturing. It also highlighted expectations of fiscal incentives to support the expansion of India's digital and artificial intelligence ecosystem.
As the group continues to scale up operations, L&T reiterated its focus on technology-led growth, disciplined execution and long-term value creation for stakeholders. The company operates across multiple geographies and sectors, including engineering, procurement and construction, hi-tech manufacturing and services, positioning it to benefit from both domestic infrastructure spending and international project opportunities.
While rising costs weighed on short-term profitability, the expanding order book and revenue growth point to sustained medium-term visibility for the infrastructure major.
Source - PTI
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