Larsen & Toubro Q1 FY27: Profit up 14%, revenue 7%

The headline numbers from the June quarter

Larsen & Toubro (L&T) reported a 14% year-on-year rise in consolidated profit for the quarter ended June 30, 2026 (Q1 FY27). Profit attributable to owners of the company stood at ₹4,122.85 crore versus ₹3,617.19 crore in Q1 FY26, as per the regulatory filing referenced in the article text. Revenue from operations increased to ₹67,941.74 crore from ₹63,678.92 crore, translating into about 6.7% to 7% growth depending on rounding used across reports. The company also disclosed profit before exceptional items and tax of ₹6,922.26 crore, up from ₹5,859.53 crore year-on-year. While revenue and profit grew, operating profitability was mixed, with multiple reports noting a year-on-year decline in EBITDA and margins.

Board approval, disclosures, and corporate actions

The Board of Directors approved the unaudited consolidated financial results at its meeting held on July 28, 2026. The company subsequently published the results in newspapers on July 29, 2026, including Financial Express, The Hindu Business Line, The Free Press Journal, and Loksatta, under Regulation 47(3) of SEBI (LODR) Regulations, 2015. Alongside the results, the reporting references corporate actions, including divestments in Nabha Power Limited and an agreement to sell L&T’s stake in L&T Metro Rail (Hyderabad) Limited. Another update cited with the results was a scheme to amalgamate L&T Power Development Limited into the parent company. These items provide context to the quarter’s treasury and corporate structure changes discussed in some reports.

Revenue growth led by execution, with a large overseas contribution

L&T’s revenue from operations for Q1 FY27 was reported at ₹67,942 crore (₹67,941.74 crore in the tabulated numbers). Reports attributed the growth to progress across several businesses and improved execution in key segments. International revenues were stated to contribute 51% of total revenue for the quarter, underlining the company’s global exposure. On a quarter-on-quarter basis, some reports noted revenue declined 17.9%, consistent with the comparison between Q1 revenue of ₹67,941.74 crore and Q4 FY26 revenue from operations of ₹82,762.16 crore shown in the table. The quarter therefore combined year-on-year expansion with sequential softness.

Profit rise supported by other income and lower interest cost

Beyond operating performance, other income was a key driver highlighted in the material provided. Other income jumped 75.2% year-on-year to ₹2,377 crore, attributed to lower debt and higher investable cash surplus. This matters because it can lift net profit even when EBITDA is under pressure. In addition, the coverage pointed to lower interest costs as another support to profit growth. L&T’s profit figure also outperformed street expectations in at least one poll cited, with profit beating a Bloomberg analysts’ poll estimate of ₹3,657.86 crore.

EBITDA and margin: growth in revenue, but pressure on profitability

Despite higher revenue, consolidated EBITDA was reported to have contracted 3% year-on-year to about ₹6,116 crore, with an EBITDA margin of 9.0% versus 9.9% in the prior-year period. Another data line in the provided text similarly put EBITDA (excluding other income) at ₹6,116.48 crore, alongside an EBITDA margin of 9.00% compared with 9.92% in Q1 FY26 and 10.40% in Q4 FY26. One report linked the margin compression to lower execution and higher expected credit loss provisions. Estimates cited in the text also suggested EBITDA missed expectations, with one consensus at ₹6,535 crore versus an outcome around ₹6,117 crore.

Order inflows cross ₹1.08 lakh crore, international share rises

Order momentum was another focal point of the quarter. L&T secured orders worth ₹108,014 crore (₹1.08 lakh crore) in Q1 FY27, a 14% year-on-year increase according to multiple references in the input text. International orders accounted for 56% of the total order inflow, indicating a strong contribution from overseas markets in new awards. Separately, the company’s total order book was cited at ₹779,000 crore (₹7.79 trillion), giving roughly three years of visibility as per the report excerpt provided. These figures help explain why the quarter narrative emphasised order inflows even as some businesses faced execution headwinds.

Market reaction and how analysts compared results to estimates

On July 28, L&T shares were reported to have closed 0.6% higher at ₹3,830 apiece. In addition to beating one profit estimate, revenue also came in above an estimate cited at ₹67,545 crore, with reported revenue around ₹67,942 crore. At the same time, EBITDA and margin were below some expectations in the text, which is consistent with the reported year-on-year margin contraction to 9%. Taken together, the market read-through in the provided material is that earnings strength was helped by non-operating levers such as other income, while core margins were under watch.

Key numbers table (as reported across the provided text)

A note on profit definitions used in the reporting

The provided material includes more than one profit line for the same quarter, reflecting different labels used in the sources. One set of numbers refers to “profit attributable to owners of the company” at ₹4,122.85 crore for Q1 FY27. Another table in the input text lists “Net profit (consolidated)” at ₹4,988.03 crore for Q1 FY27 and ₹4,318.17 crore for Q1 FY26, and separately shows “Net profit (consolidated)” of ₹6,133.06 crore for Q4 FY26. Readers comparing quarters should check which profit measure is being referenced in each line item.

What to watch next

The quarter’s key watchpoints, based on the disclosed figures, are the trajectory of EBITDA margins, the sustainability of elevated other income, and execution amid stated disruptions affecting some international operations. Corporate actions mentioned around the results, including the Nabha Power divestment and the agreement to sell the Hyderabad Metro Rail stake, may also influence reported income lines over time. For near-term tracking, the next set of disclosures will likely clarify how order inflows translate into execution and margins, and whether international revenue and order shares remain at similar levels.