L&T Q2 FY26 Profit Rises 16% to ₹3,926 Crore — Marginal Miss on Revenue Target
Larsen & Toubro (L&T), India’s leading infrastructure and engineering conglomerate, reported a 16% year-on-year (YoY) rise in consolidated net profit to ₹3,926 crore for the quarter ended September 30, 2025 (Q2 FY26). Revenue from operations stood at ₹67,984 crore, up 10% YoY from ₹61,720 crore but marginally below the Street’s expectation of ₹70,818 crore. The numbers indicate robust order execution in core infrastructure segments, although input cost pressures and project scheduling impacted the topline.
Financial Performance Snapshot — Q2 FY26
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
| Revenue from Operations (₹ Cr) | 67,984 | 61,720 | +10% |
| Net Profit (₹ Cr) | 3,926 | 3,395 | +16% |
| EBITDA Margin | 11.5% | 10.8% | Improved |
| Order Inflow (₹ Cr) | 95,000+ | 89,000+ | +7% |
L&T’s strong bottom-line growth was aided by better project execution and higher contributions from technology services subsidiaries, although the slight miss on revenue indicates timing-related deferrals in key projects.
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Segment-Wise Highlights
- Infrastructure Projects: Revenue rose 12% YoY, supported by strong execution in transportation and hydrocarbon EPC orders.
- Energy Segment: Growth remained steady with new renewable EPC and power transmission contracts boosting the order book.
- IT and Technology Services: L&T Infotech and L&T Technology Services together contributed double-digit growth, improving group margins.
- International Operations: Contributed over 35% to total revenue, led by Middle East infrastructure orders.
Order Book and Outlook
L&T’s consolidated order book at the end of Q2 FY26 stood above ₹4.5 lakh crore, providing strong revenue visibility for the next several quarters. Management commentary suggested optimism driven by the government’s continued infrastructure push under Gati Shakti and green energy transitions. However, margin pressures from rising input costs and competition in overseas EPC bids remain key variables to watch.
Peer Comparison — Large-Cap Infra & Engineering Firms
| Company | Revenue (₹ Cr) | Net Profit (₹ Cr) | YoY Growth |
| Larsen & Toubro | 67,984 | 3,926 | +16% |
| Thermax | 2,850 | 195 | +11% |
| ABB India | 2,640 | 310 | +22% |
L&T remains the undisputed leader in India’s engineering and construction space, both in scale and diversification, followed by ABB and Thermax in specialized verticals.
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SWOT Analysis — L&T Q2 FY26
| Strengths | Weaknesses |
| Robust order book with diversified project portfolio. | Dependence on government-led infra spending cycles. |
| Strong execution track record and global presence. | Cost inflation may affect near-term margins. |
| Consistent growth in technology subsidiaries. | Exposure to project delays and overseas risk. |
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, notes that L&T’s Q2 performance reaffirms its position as the bellwether of India’s infrastructure growth. While revenue marginally missed expectations, profitability and order pipeline remain strong, supported by continued project execution and digital transformation within engineering operations.
From an investment standpoint, L&T continues to be a core long-term holding for investors seeking exposure to India’s infrastructure expansion, energy transition, and capital goods revival. Near-term stock movement may remain range-bound, offering accumulation opportunities for medium- to long-term investors.
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Related Queries
- How will government capex drive L&T’s future growth?
- Is L&T still a buy after Q2 FY26 results?
- Which infra stocks benefit most from India’s construction cycle?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment adviser before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
