L&T Q4 FY26: Profit dips 3%, revenue up 11%, ₹38 dividend

What L&T reported for the March quarter

Larsen & Toubro (L&T), India’s largest engineering and construction group, reported a 3 percent year-on-year decline in consolidated net profit for Q4 FY26. The slip in reported profit came despite healthy revenue growth and robust order inflows during the quarter. The company pointed to a high base as the key reason for the year-on-year decline in profit.

Operationally, L&T delivered growth in EBITDA, although margins moderated compared to the same period last year. Order momentum remained strong, led by overseas wins, and the consolidated order book climbed to a record level as of March 31, 2026.

Profit fell on an exceptional gain base

L&T posted consolidated net profit of ₹5,326 crore for Q4 FY26, compared with ₹5,497 crore in the year-ago quarter. The company attributed the year-on-year decline in consolidated profit after tax primarily to an exceptional gain of ₹475 crore recorded in the previous year’s corresponding quarter.

To provide a like-for-like view, L&T also disclosed recurring profit after tax, which stood at ₹5,289 crore. The recurring PAT rose 5 percent year-on-year, indicating that the underlying profitability improved even though the reported number declined due to the base effect.

Revenue rose 11% as execution stayed steady

Consolidated revenue for the quarter rose 11 percent year-on-year to ₹82,762 crore, supported by steady execution across businesses. The update also stated revenue from operations increased 11.3 percent year-on-year to ₹82,762.2 crore versus ₹74,392 crore in the year-ago period.

International revenues stood at ₹43,747 crore, contributing 53 percent of total revenue for the quarter. The international share underscores the company’s increasing exposure to overseas markets, both in execution and in order intake.

EBITDA grew, but margins moderated

Operationally, EBITDA for Q4 FY26 increased 5 percent year-on-year to ₹8,610 crore. However, the EBITDA margin moderated to 10.4 percent from 11 percent a year ago.

The company linked the margin movement to cost pressures and execution mix. In practical terms, this suggests a quarter where growth was achieved, but the profitability per rupee of revenue eased compared to last year.

Order inflows stayed robust, led by international wins

Order inflows during the quarter came in at ₹89,772 crore. International orders contributed 67 percent of the total quarterly order inflow, highlighting strong overseas traction.

L&T said it secured several high-value orders during the quarter across commercial and residential buildings, roads and runways, urban transport, transmission and distribution, and hydrocarbon onshore businesses. International orders for Q4 FY26 were reported at ₹59,994 crore.

Record order book improves revenue visibility

The consolidated order book stood at a record ₹7,40,327 crore as of March 31, 2026. This was up 28 percent year-on-year, which the company said provides strong revenue visibility.

For engineering and construction companies, a higher order book typically indicates better near-term execution visibility, subject to project schedules and client payments. In L&T’s case, the record level is backed by a quarter where overseas orders made up a significant share of inflows.

Segment cues from the quarterly update

The company said revenue growth in the quarter was driven by Hi-Tech Manufacturing, Energy, and Financial Services, partly offset by subdued progress in Infrastructure Projects. In its analyst presentation, L&T showed Hi-Tech Manufacturing revenue rising 45 percent year-on-year, Energy revenue growing 36 percent, and Financial Services income from operations rising 22 percent in Q4 FY26.

While the update flagged subdued progress in Infrastructure Projects, it also indicated that the broader portfolio delivered steady execution, helping the consolidated revenue line grow in double digits.

Full-year FY26 snapshot: inflows and revenue

For the full year, order inflows rose 22 percent to ₹4,35,590 crore. Full-year revenue grew 12 percent to ₹2,85,874 crore.

These numbers, combined with the record order book at year-end, frame the quarter’s performance in the context of continued execution and sustained ordering momentum.

Dividend recommendation

The headline update also noted that the board recommended a ₹38 dividend. The company’s quarterly performance update discussed profit, revenue, margins, and the scale of the order book alongside this shareholder payout decision.

Key reported numbers at a glance

Why the quarter matters for investors

The Q4 FY26 numbers show a familiar pattern for large EPC and diversified engineering groups: execution-led revenue growth, margin sensitivity to costs and project mix, and a reliance on sustained order intake to keep multi-year visibility intact.

In L&T’s case, the quarter stood out for the size and international skew of order inflows, as well as the record consolidated order book at the end of the fiscal year. At the same time, the moderation in EBITDA margin to 10.4 percent highlights that cost pressures and execution mix remain important variables even in a growth quarter.

What to track next

L&T has closed FY26 with a record order book and disclosed full-year growth in both revenue and order inflows. Investors will watch how the company converts the order book into revenue, particularly given the high international share in both quarterly revenue and order intake.

The next set of updates from the company will help clarify whether margins stabilise from the Q4 level and how execution progresses across key businesses that drove growth in the quarter.