LARSENANDTOUBRO Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
Pending
verification pending
Revenue YoY
7%
reported change
EBITDA
Pending
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
L&T reported resilient Q1 FY27 results amid a challenging geopolitical environment, with order inflows of Rs 1,080 billion (+14% YoY) and a record order book of Rs 7.79 trillion (+27% YoY) driven by strong international ordering in offshore wind and domestic private sector capex. Revenue growth of 7% YoY was subdued as guided, impacted by Middle East supply chain disruptions affecting the Energy Green segment. EBITDA margin contracted 90bps to 9% due to lower PPM execution, higher ECL provisions from water sector collection shortfalls, and FX variations. PAT grew 14% YoY to Rs 41 billion aided by services business performance and higher treasury income. Working capital efficiency improved dramatically with NWC/Sales at 4.9% vs 10.1% last year. Management maintained FY27 order inflow guidance of 10-12% and revenue growth guidance of 10-12%, targeting PPM margin of ~7.8%. Key risk: extended Middle East conflict could impact offshore project dispatch timelines and trigger cost escalation provisions.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated confidence in achieving 10-12% order inflow growth for FY27, supported by healthy prospects pipeline of Rs 15.07 trillion and continued momentum in domestic private sector and international markets.
- Revenue growth guidance of 10-12% maintained for FY27, though management indicated H1 FY27 would be subdued due to Middle East conflict and expects acceleration from H2 as execution normalizes.
- Targeting PPM margin of around 7.8% for FY27, in line with revenue growth guidance. The margin trajectory assumes normal execution progress and no further escalation in geopolitical disruptions.
- Maintaining FY27 working capital guidance of around 10% factoring in expected utilization of customer advances and increased vendor payments as execution accelerates in H2.
Risks flagged
- Supply chain disruptions in the Middle East, particularly affecting Energy Green segment (solar projects in GCC), have led to execution delays. Offshore project dispatch from Qatar is scheduled for Q1 calendar 2027, and extended conflict could materially impact timelines and trigger cost escalation claims.
- Elevated ECL provisions were recognized in Q1 due to aging receivables in the water and effluent treatment business, stemming from JJM funding delays. Management expects reversals as collections improve, but timing remains uncertain.
- Analyst questioned progress on MAV RFP and MQ-9B drone program (JV with General Atomics). Management declined to provide updates beyond stating the bidding process is ongoing, leaving timing of potential large defense awards unclear.
- Analyst raised concern reconciling ECL provisions with robust working capital improvement. Management clarified provisions relate to legacy water projects with delayed collections, representing timing difference rather than fundamental credit deterioration.
Key quotes
- The performance for the quarter reflects the resilience of our portfolio and the strength of our diversified business model in an increasingly dynamic operating environment.
- We have not seen any project cancellations across the opportunities that we are actively pursuing and bidding for in India. We see continuing investment momentum from both private sector and public sector enterprises.
- We don't expect that there will be any erosion in the margin. We are pretty much on the trend what we had indicated earlier.
Research modules