L&T Q1 Results : Profit Soars 30% YoY to ₹3,617 Cr, Strong Global Orders Fuel Growth

July 30, 2025 Sagun

L&T Q1 Results : Larsen & Toubro (L&T) kicked off FY2026 with an impressive performance, posting a 30% jump in net profit for the April–June quarter. Backed by a surge in international orders and solid execution across its business segments, the engineering giant comfortably beat street estimates on both top and bottom lines.

If you’re tracking infrastructure and capital goods stocks—or looking for cues on India’s construction boom—L&T’s latest earnings offer some solid insights.

Table of Contents

Quick Snapshot of L&T’s Q1 FY2026 Numbers

Let’s start with the key figures:

Net Profit: ₹3,617 crore (up 30% YoY)
Revenue from Operations: ₹63,679 crore (up 16% YoY)
EBITDA: ₹6,318 crore (up 13% YoY)
EBITDA Margin: 9.9% (vs 10.2% last year)

Clearly, L&T managed to grow both in terms of revenue and profitability, despite a slightly tighter margin environment.

Global Orders Take the Lead

One of the biggest highlights this quarter was L&T’s order inflow, which touched a whopping ₹94,453 crore—a 33% increase from last year.

What’s interesting is that over 52% of these orders came from international markets, especially in the Middle East. With several large contracts in energy, infrastructure, and civil engineering, L&T’s global game is only getting stronger.

For context: While Indian infra companies often rely on domestic projects, L&T’s diversification strategy is clearly working. In an environment where local order tendering remains patchy, global orders are doing the heavy lifting.

Strong Execution Across Key Business Segments

Revenue from international operations came in at ₹32,994 crore—again, that’s more than half of L&T’s total business. The company’s Projects & Manufacturing division led the charge, executing ongoing projects efficiently while onboarding new ones.

Despite facing supply chain challenges and inflationary costs in certain pockets, L&T stayed on course with disciplined delivery, which is a big plus in the infra sector where delays are common.

Why Margins Dipped (Slightly)

Now, the only minor hiccup: margins.

While EBITDA grew, the EBITDA margin fell from 10.2% to 9.9%. That’s not alarming, but it does show that higher input costs or tighter bidding in global projects might be squeezing profitability a bit.

It’s something investors should keep an eye on—especially if this trend continues in coming quarters.

What Analysts Are Saying

Brokerages are mostly bullish on the stock after the Q1 beat:

Jefferies has retained a Buy rating and bumped up its target to ₹4,230.
Motilal Oswal echoed similar sentiments, citing a healthy ₹15 lakh crore opportunity pipeline and raised its target to ₹4,200.
On the other hand, Avendus remains cautious and has maintained a Reduce call with a ₹3,000 target, pointing to weak domestic order visibility.

So, the overall tone from the street? Positive, but selectively cautious.

Stock Market Reaction

Investors welcomed the results with open arms. On the day following the announcement, L&T shares rallied nearly 4%, making it one of the top gainers on the Nifty 50.

The surge was driven by confidence in L&T’s execution and the scale of its global opportunities. For long-term investors, this could be a reaffirmation of L&T’s positioning as a leader in the infra and engineering space.

What This Means for You (As an Investor or Industry Follower)

Here are three quick takeaways:

1. Global diversification = resilience

L&T’s increasing reliance on international projects is a smart move. It shields the company from slowdowns in the Indian market and positions it well in fast-growing global infra hubs.

2. Margins need monitoring

Even though the profit has risen, shrinking margins could be an early sign of project cost pressures. Keep tabs on this in the next few quarters.

3. Order book is solid

With a healthy pipeline and aggressive global bidding, L&T seems set for a strong FY2026—unless macroeconomic shocks (like oil prices or currency risks) throw curveballs.

Quick Glossary for Non-Finance Folks

Order book: The total value of projects the company is currently working on or yet to execute.

EBITDA: A way to measure a company’s profit purely from its operations—before it pays interest or taxes.

Final Thoughts

L&T’s Q1 numbers are a strong vote of confidence in its strategy and execution. While the domestic infra space still has room to pick up, the company’s global expansion has become a clear growth engine.

If you’re a long-term investor looking for solid, fundamentals-backed stories in the infrastructure space, L&T remains a front-runner. Just keep an eye on margins and any global uncertainties—but overall, the company looks well-placed to deliver steady growth through FY2026.

Order inflow: New contracts won during the quarter.

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