L&T Q4 FY26 results: Profit dips, revenue up 11%

Profit slips on high base despite steady execution

Larsen & Toubro (L&T), India’s engineering and construction major, reported a 3% year-on-year decline in consolidated net profit for Q4 FY26, even as revenue growth stayed firm. Consolidated net profit came in at Rs 5,326 crore for the quarter. The company attributed the decline mainly to a high base in the year-ago period, which included an exceptional gain. The quarter’s performance highlights a familiar pattern for large project-led companies, where reported profit can be influenced by one-off items while operating execution remains steady.

Reported net profit and the exceptional gain

L&T said the corresponding quarter last year included an exceptional gain of Rs 475 crore, net of tax and non-controlling interest, as per its stock exchange filing. This exceptional item was the main reason cited for the year-on-year decline in consolidated net profit. The company reported Q4 FY26 net profit of Rs 5,326 crore compared with Rs 5,493 crore in the year-ago period, while another figure cited for the comparable quarter was Rs 5,497 crore. L&T also disclosed a recurring profit after tax (PAT) of Rs 5,289 crore for the quarter, which was up 5% year-on-year. The recurring PAT number is useful for separating operating performance from exceptional items.

Revenue rises 11% to Rs 82,762 crore

Consolidated revenue for Q4 FY26 rose 11% year-on-year to Rs 82,762 crore. The company linked the growth to steady execution across segments. For investors, revenue momentum is closely watched because it reflects project execution and conversion of the order book into billings. L&T’s quarterly revenue performance also comes alongside commentary that order inflows remained robust.

International business remains a key contributor

International revenues stood at Rs 43,747 crore in Q4 FY26. That accounted for 53% of total revenue, underlining the company’s reliance on overseas markets for growth. The revenue mix is also consistent with L&T’s broader positioning as a contractor with meaningful exposure to non-India geographies. The company also reported that international orders contributed a large share of quarterly order inflows.

EBITDA up 5%, but margins moderate

Operationally, EBITDA for Q4 FY26 increased 5% year-on-year to Rs 8,610 crore. However, EBITDA margin moderated to 10.4% from 11% a year ago. The company attributed the margin change to cost pressures and execution mix. Margin movement in project businesses is often tied to job mix and the stage of execution, making quarterly margin comparisons important for tracking underlying operating conditions.

Order inflows stay strong with overseas traction

Order inflows during Q4 FY26 came in at Rs 89,772 crore. International orders contributed 67% of these inflows, pointing to strong traction outside India during the quarter. A higher international share can influence near-term execution and currency-linked cash flows, depending on contract structures and geography mix. L&T’s update indicates that the pipeline continues to support future revenue conversion.

Record order book at Rs 7,40,327 crore

L&T reported that its consolidated order book stood at a record Rs 7,40,327 crore as of March 31, 2026. The order book was up 28% year-on-year, providing visibility for future execution. For engineering and construction companies, a rising order book typically supports revenue continuity, subject to project schedules and mobilisation timelines. The reported level also signals the scale at which the company is currently operating.

Full-year FY26: Order inflows up 22%, revenue up 12%

For the full year, L&T said order inflows rose 22% to Rs 4,35,590 crore. Full-year revenue grew 12% to Rs 2,85,874 crore. These two metrics together help explain the near-term operating picture: strong order intake supports the order book, while revenue growth indicates execution through the year. The company’s quarterly numbers are therefore set against an annual backdrop of higher inflows and rising revenue.

Dividend announcement for FY26

L&T’s board recommended a final dividend of Rs 38 per share for FY26, subject to shareholder approval. Dividend declarations are closely tracked in large-cap industrials because they signal capital allocation and confidence in cash generation. The announcement follows a quarter where reported profit declined on a high base, but operating and order metrics remained supportive.

Key numbers snapshot

Why this result matters for investors

The quarter shows a split between reported profit and operating indicators. Net profit declined year-on-year, but L&T explicitly linked it to the absence of an exceptional gain in the base period, while recurring PAT grew 5%. Revenue growth of 11%, higher EBITDA, and a record order book provide context for execution momentum and future visibility. The continued dominance of international revenues at 53% and international orders at 67% of quarterly inflows also highlights how overseas markets remain central to the company’s growth mix.

What to watch next

With the order book at Rs 7,40,327 crore as of March 31, 2026, attention is likely to remain on execution pace, margin trajectory amid cost pressures, and the sustainability of international-led inflows. The final dividend of Rs 38 per share is also subject to shareholder approval, which will be a formal next step in the company’s FY26 distribution plan.