Larsen & Toubro Earnings Summary — Q4 FY2026
Larsen & Toubro Delivers Robust Q4 Performance with 11% Revenue Growth and Net Profit Surge
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 17.9% sequentially in Q1 FY2027.
- Revenue of ₹67,942 Cr is 6.7% higher year-on-year.
- Revenue has compounded at 0.6% annualised over the last 10 quarters.
- Net profit of ₹4,123 Cr is 14.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -2.8% annualised across the period.
- Operating margin stands at 12.0% in Q1 FY2027.
- Operating margin compressed by 61 bps year-on-year.
- Over the last two years operating margin has contracted by 79 bps.
- PBT margin is 10.2%.
- Expenses grew 7.4% against revenue growth of 6.7%.
- Operating profit of ₹8,149 Cr is 1.6% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 55/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 67,942 | 82,762 | 71,450 | 67,984 | 63,679 | 74,392 | 64,668 | 61,555 | 55,120 | 67,079 |
| Expenses | Stable | 59,793 | 72,343 | 62,259 | 59,470 | 55,655 | 64,516 | 56,770 | 53,638 | 48,074 | 58,426 |
| Operating Profit | Stable | 8,149 | 10,419 | 9,190 | 8,513 | 8,024 | 9,876 | 7,898 | 7,917 | 7,046 | 8,653 |
| Operating Margin | Stable | 12.0% | 12.6% | 12.9% | 12.5% | 12.6% | 13.3% | 12.2% | 12.9% | 12.8% | 12.9% |
| Other Income | Volatile | 2,377 | 1,647 | -350 | 1,384 | 1,357 | 1,610 | 968 | 1,101 | 921 | 1,135 |
| Interest | Stable | 2,571 | 2,488 | 2,399 | 2,470 | 2,488 | 2,419 | 2,486 | 2,439 | 2,292 | 2,345 |
| Depreciation | Stable | 1,032 | 1,168 | 1,072 | 1,092 | 1,033 | 1,052 | 1,047 | 1,024 | 998 | 1,021 |
| Profit Before Tax | Improving | 6,922 | 8,410 | 5,370 | 6,336 | 5,860 | 8,014 | 5,333 | 5,555 | 4,677 | 6,422 |
| Tax | Improving | 1,939 | 2,093 | 1,541 | 1,649 | 1,534 | 1,881 | 1,332 | 1,442 | 1,237 | 1,418 |
| Net Profit | Improving | 4,123 | 5,326 | 3,215 | 3,926 | 3,617 | 5,497 | 3,359 | 3,395 | 2,786 | 4,396 |
| Net Margin | Stable | 6.1% | 6.4% | 4.5% | 5.8% | 5.7% | 7.4% | 5.2% | 5.5% | 5.0% | 6.5% |
Key Takeaways
- Revenue for the quarter reached a record high of ₹82,762 Cr, reflecting strong execution momentum.
- Net profit rebounded sharply by 60% on a sequential basis, recovering from a lower-than-average Q3.
- Operating Profit Margin (OPM) has stabilized at 13%, halting the long-term secular decline seen over the last decade.
- Other income contributed significantly (₹1,647 Cr) to the bottom line during the quarter.
- Book-to-bill visibility remains high with a massive order book concentrated in Infrastructure and IT services.
- The balance sheet remains stable with consistent Equity Capital despite massive scaling of operations.
- Consolidated PAT for the full year FY26 crossed ₹18,900 Cr, marking a steady 7% TTM profit growth.
Management Guidance
Management remains focused on the 'Lakshya 2026' strategic plan, emphasizing an asset-light model and improved capital returns. Growth is expected to be driven by international markets, particularly the Middle East, alongside digital transformation initiatives.
Sentiment Shift
Improving
A strong Q4 recovery in profit after a dip in Q3 (due to high interest/other income movements) suggests operational resilience and strong year-end closing.
Outlook
The outlook remains positive with a healthy order book provides 2-3 years of revenue visibility and strong technical leadership. Potential risks include raw material price volatility and high absolute debt levels in the finance subsidiary.
From the Annual Report (Key Quotes)
“L&T is India's pre-eminent EPC conglomerate, demonstrating a transition from a massive infrastructure player to a high-tech service and manufacturing powerhouse.”
“The transition of leadership has been smooth, maintaining a culture of technical excellence and project execution.”
“Clear focus on digital transformation and ESG goals, positioning the company for future-proof growth.”
Official Quarterly Documents
This summary is AI-generated from Larsen & Toubro's latest quarterly filing and earnings call. For informational purposes only — not investment advice.