L&T Q3 Results: Revenue rises over 10%, margin expands; Order book up 17%

Larsen & Toubro (L&T) delivered a mixed performance for the December quarter, with profit and revenue coming in below Street expectations, largely due to a one-time impact from labour code-related expenses.

Net profit declined 4.3% year-on-year to ₹3,215 crore, significantly lower than the CNBC-TV18 poll estimate of ₹4,380 crore. Revenue rose 10.5% to ₹71,449 crore, but also missed estimates of ₹73,691 crore.

Operating performance remained steady, with EBITDA increasing 18.6% year-on-year to ₹7,416 crore, marginally above estimates. EBITDA margin improved to 10.4%, compared with 9.67% a year ago, aided by better execution and operating leverage.

The company reported an exceptional labour code impact of ₹1,344 crore during the quarter, which weighed on bottom-line performance.

Ahead of the earnings announcement, shares of Larsen & Toubro closed marginally higher on the NSE.

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Larsen & Toubro secured fresh orders worth ₹1.36 lakh crore during the December quarter, a 17% year-on-year increase. Consolidated order inflows for the nine months ended December 31, 2025 rose 30% to ₹3.46 lakh crore, led by large wins across infrastructure, energy, metals, hydrocarbons and renewables. International orders accounted for 55% of total inflows.

The consolidated order book stood at ₹7.33 lakh crore, up 30% from a year earlier, with overseas orders contributing nearly half.

The Infrastructure Projects segment saw quarterly order inflows rise 26% year-on-year to ₹61,876 crore, aided by strong traction in power transmission, renewables, roads and metro projects. International orders formed 55% of inflows, while the segment order book stood at ₹4.25 lakh crore at December-end.

Energy Projects posted a 19% year-on-year increase in quarterly order inflows to ₹46,049 crore, supported by ultra-mega orders in hydrocarbons, offshore wind and carbon capture solutions. International markets contributed 43% of inflows, with overseas orders forming nearly two-thirds of the segment’s ₹2.48 lakh crore order book.

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Order inflows in Hi-Tech Manufacturing declined sharply by 74% year-on-year to ₹2,168 crore due to a high base in the precision engineering business.

The IT & Technology Services segment reported customer revenues of ₹13,526 crore, up 12% year-on-year, largely in line with sector trends. International billing made up 92% of revenues.

In Financial Services, income from operations rose 15% year-on-year to ₹4,477 crore, driven by higher retail disbursements. The loan book expanded 20% to ₹1.14 lakh crore, with retail loans accounting for 98%.

The Development Projects segment reported a 19% decline in customer revenues due to lower plant load factors at the Nabha thermal plant, though EBIT improved to ₹159 crore, aided by higher fare revenues from the Hyderabad Metro.

Management said the company remains confident of sustaining growth, supported by continued capital expenditure, policy support for manufacturing, and its focus on execution efficiency, cost discipline and expansion across domestic and international markets.