Larsen & Toubro Financial Breakdown: Revenue, Profit, Ratios
Larsen & Toubro (L&T) is India's largest engineering and construction conglomerate, with businesses spanning infrastructure, energy, manufacturing and technology services. The company reported its September-quarter (Q2 FY27) results on 27 October 2026, posting a 33% jump in profit and a record quarterly order inflow. This breakdown looks at L&T's latest results, its five-year financial trend, balance-sheet strength, key ratios, segment mix, shareholding and how it compares with a listed EPC peer.
All figures below are consolidated, unless stated otherwise. FY refers to the April–March financial year; Q2 FY27 is the quarter ended 30 September 2026.
Business Overview
Founded in 1938 and headquartered in Mumbai, L&T operates through segments including Infrastructure & Utilities, Energy–Conventional (hydrocarbon), Energy–Green, Manufacturing & Products, and Technology, Platforms & Services (which includes its listed IT and financial-services arms). The group is professionally managed — it has no promoter shareholder — and earns well over half its revenue outside India. Chairman and Managing Director S. N. Subrahmanyan said after the Q2 FY27 results that the record order book of Rs 8.5 lakh crore "provides multi-year revenue visibility".
Q2 FY27 Results: Profit Up 33%, Record Order Inflows
L&T's September 2026 quarter was driven by faster execution and a surge in new orders, even as margins narrowed. The stock rose about 6% on 28 October 2026, touching Rs 3,892, after the results.
| Q2 FY27 metric | Value | Year-ago (Q2 FY26) | Change |
|---|---|---|---|
| Revenue from operations | Rs 78,750 crore | Rs 67,984 crore | +16% |
| Profit after tax (PAT) | Rs 5,202 crore | Rs 3,926 crore | +33% (32.5%) |
| EBITDA | Rs 6,840 crore | Rs 6,810 crore | ~flat (+0.4%) |
| EBITDA margin | 8.7% | 10.0% | -130 bps |
| Order inflows (quarter) | Rs 1,47,665 crore | Rs 1,15,784 crore | +28% |
| Order book (30 Sep 2026) | Rs 8,53,514 crore | — | +15% vs Mar 2026 |
Key points from the quarter:
- Record inflows: Q2 FY27 order inflows of Rs 1,47,665 crore were the highest ever for a quarter, with international orders of Rs 92,375 crore contributing 63%.
- International mix: International revenue was Rs 45,870 crore, or 58% of the quarter's revenue; 54% of the order book is international.
- Margin pressure: EBITDA was nearly flat despite 16% revenue growth, as margins softened across the portfolio and the revenue mix shifted toward manufacturing-related businesses.
- Half-year picture: For H1 FY27 (April–September 2026), revenue rose 11% to Rs 1,46,692 crore and PAT rose 24% to Rs 9,325 crore.
Revenue and Profit Trend: FY22–FY26
L&T's revenue has compounded at about 16.4% a year over the last five years, and profit has grown slightly faster, at about 16.8% a year.
| Financial year | Revenue (Rs crore) | Net profit (Rs crore) | EPS (Rs) | Dividend per share (Rs) |
|---|---|---|---|---|
| FY22 | 1,58,788 | 10,291 | 61.65 | 22.00 |
| FY23 | 1,86,270 | 12,625 | 74.45 | 24.00 |
| FY24 | 2,25,271 | 15,570 | 93.88 | 34.00 |
| FY25 | 2,59,859 | 17,687 | 109.28 | 34.00 |
| FY26 | 2,91,635 | 19,159 | 116.88 | 38.00 |
FY26 revenue growth of 12.2% was slower than the five-year average, and net profit grew 8.3% in FY26. Q4 FY26 alone brought in revenue of Rs 82,762 crore, up 11.25% year-on-year, underlining the seasonally strong March quarter for EPC execution.
Profitability and Margins
- Net margin: L&T converted 6.6% of FY26 revenue into net profit, against 6.8% in FY25 — a thin margin typical of EPC contracting, where scale rather than margin drives profit.
- EBITDA margin: 13.8% in FY26 versus 14.4% in FY25, and down to 8.7% in Q2 FY27 on the consolidated P&L measure used in quarterly reporting.
- Returns: Return on equity of about 18.6% and return on capital employed of about 16.0% in FY26, both above their five-year medians.
- Cash flow: FY26 operating cash flow was Rs 16,741 crore against capital expenditure of Rs 4,809 crore, leaving free cash flow of about Rs 11,932 crore.
Balance Sheet Strength
- Debt-to-equity: About 1.1–1.2x in FY26 (1.15x per one data portal) — above the construction-industry average of about 0.39x, reflecting debt carried by its financial-services and project businesses as well as working capital for large projects.
- Equity base: Shareholders' equity grew from about Rs 95,374 crore in FY22 to about Rs 1,28,530 crore in FY26.
- Market size: Market capitalisation of roughly Rs 4.95–4.98 lakh crore, with a 52-week range of Rs 3,288–Rs 4,440 and a trailing P/E of roughly 28–30x.
- Working capital: Cash conversion cycle of about -14 days in FY26.
Segment Split: Where Q2 FY27 Revenue Came From
| Segment (Q2 FY27) | Revenue (Rs crore) | Year-on-year growth |
|---|---|---|
| Infrastructure & Utilities | 25,133 | +6% |
| Energy–Conventional (hydrocarbon) | 17,285 | +29% |
| Technology, Platforms & Services | 14,826 | +11% |
| Energy–Green (solar, offshore wind) | 11,493 | +43% |
| Manufacturing & Products | 4,480 | +34% |
The segment table covers the company's main reported businesses; the balance of consolidated revenue comes from other operations and eliminations. Energy was the standout: conventional energy order inflows more than doubled to Rs 78,413 crore in the quarter, and green-energy revenue jumped 43% on solar and offshore wind execution. L&T has also announced a venture with NVIDIA under the IndiaAI Mission to build sovereign AI-factory infrastructure in India.
Key Ratios at a Glance (FY26)
| Ratio | FY26 value |
|---|---|
| Return on equity (ROE) | ~18.6% |
| Return on capital employed (ROCE) | ~16.0% |
| Debt-to-equity | ~1.15x |
| Net profit margin | ~6.6% |
| EBITDA margin | ~13.8% |
| Dividend yield (TTM) | ~1.0% |
| Trailing P/E | ~28–30x |
Shareholding Pattern
L&T is unusual among large Indian companies in having no promoter holding at all — it is a widely held, professionally managed company, so there is no promoter pledge risk either. As of the September 2026 quarter, institutions held about 62.3% of the shares, including mutual funds at about 19.4% and insurance companies at about 19.3%.
Dividend History
L&T has paid a dividend in each of the last 20 financial years up to FY26. The dividend per share rose from Rs 22.00 in FY22 to Rs 38.00 in FY26, a payout ratio of about 33% of FY26 earnings per share, with a trailing dividend yield of about 1.04%.
Peer Comparison
Against a pure-play EPC peer, L&T's scale advantage is stark — it is roughly twelve times KEC International's revenue — while its profitability ratios sit in a similar EPC band.
| Company (FY26) | Revenue (Rs crore) | Net profit (Rs crore) | Order book (Rs crore) | Market cap (approx.) |
|---|---|---|---|---|
| Larsen & Toubro | 2,91,635 | 19,159 | 8,53,514 (Sep 2026) | ~Rs 4.95 lakh crore |
| KEC International | 23,556 | 606 | 36,267 (Mar 2026) | ~Rs 8,830 crore |
KEC's FY26 revenue grew 8% and its operating profit grew 18%, with a return on equity of about 9.8% — well below L&T's ~18.6%.
Key Risks to Watch
- Margin pressure: Q2 FY27 showed EBITDA flat on 16% revenue growth; if the mix keeps shifting toward lower-margin manufacturing and product work, margins may stay soft.
- Working capital and debt: Debt-to-equity above 1x and EPC working-capital swings can constrain flexibility.
- Geopolitical and execution risk: 54% of the order book is international, exposing execution to Middle East logistics, commodity prices and geopolitical disruption.
- Valuation: At roughly 28–30x trailing earnings, the stock prices in continued double-digit growth; any order-flow slowdown would test that multiple.
Conclusion
L&T's Q2 FY27 results reinforce its position as India's EPC bellwether: revenue up 16%, profit up 33%, a record Rs 1.48 lakh crore of quarterly inflows and an Rs 8.53 lakh crore order book that secures years of work. The five-year trend — revenue nearly doubling from Rs 1.59 lakh crore to Rs 2.92 lakh crore — shows durable compounding, but the quarter also flags the watch items: thinning margins, elevated leverage and a rich valuation. For readers tracking India's infrastructure cycle, the order book, not any single quarter's margin, is the number that matters most.
Disclaimer: This article is for educational and informational purposes only and is not investment advice. Figures are sourced from company results coverage, exchange filings and financial data portals; please verify figures from the company's official filings before making any investment decision.
Frequently Asked Questions
What was L&T's profit in Q2 FY27?
Consolidated profit after tax was Rs 5,202 crore in the quarter ended 30 September 2026, up 32.5% from Rs 3,926 crore a year earlier.
How big is L&T's order book?
Rs 8,53,514 crore as of 30 September 2026, up 15% from March 2026, with 54% from international orders.
What is L&T's revenue trend?
Consolidated revenue rose from Rs 1,58,788 crore in FY22 to Rs 2,91,635 crore in FY26, a compound annual growth rate of about 16.4%.
Does L&T have a promoter?
No — L&T has 0% promoter holding and is professionally managed; institutions hold about 62% of the shares.
What dividend did L&T pay for FY26?
Rs 38.00 per share, up from Rs 34.00 in FY25, a payout ratio of about 33% of earnings per share.