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Revenue
₹67,984 Cr
verified against source
Revenue YoY
10%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
L&T reported a strong Q2 FY26 with group revenues of INR 68,000 crore (+10% YoY) and PAT of INR 3,900 crore (+16% YoY). Order inflows surged 45% YoY to INR 1,158 billion, driven by ultra-mega hydrocarbon orders in the Middle East and robust domestic private sector demand. The order book reached a record INR 6.67 trillion (+31% YoY), providing strong revenue visibility. EBITDA margin for P&M improved to 7.8% (+20bps YoY), while group EBITDA margin dipped to 10% due to IT&TS compression. Management maintained FY26 guidance of 15% revenue growth and 8.5% P&M EBITDA margin, expressing confidence in exceeding order inflow guidance. Key risks include cost overruns in legacy hydrocarbon projects and slower execution in water infrastructure due to payment delays.
Colored figures show movement against the previous available record.
Guidance to track
- Management is confident of exceeding the full-year guidance of 10% growth in group order inflows, citing strong H1 momentum and robust prospects pipeline.
- Group revenue growth guidance of 15% for FY26 is maintained, with stronger H2 execution expected.
- Management is reasonably confident of achieving the full-year P&M EBITDA margin target of 8.5%, with H1 margin at 8.4% and H2 execution pickup expected.
- Net working capital to revenue ratio is expected to be around 12% by March 2026, unchanged from prior guidance.
Risks flagged
- Energy segment margins declined to 7.3% due to cost overruns in a few domestic and international projects nearing completion. Management expects soft margins to persist in the near term.
- Infrastructure revenue declined 1% YoY partly due to slower progress in rural water supply projects facing payment challenges. Management has slowed execution until payments improve.
- With 49% of order book from international markets (84% Middle East), any geopolitical instability or supply chain disruptions could impact execution and margins.
- Group EBITDA margin declined 30bps YoY primarily due to margin compression in IT&TS segment, which could persist if demand environment remains challenging.
Key quotes
- We are confident of exceeding our full-year FY 2026 guidance of 10% growth in group order inflows for the current year.
- I think this run will continue for some more time, at least for the next two, three, four years. I mean, beyond that, I cannot predict, so all in all, I'm quite optimistic.
- The current southward movement in Energy margins is baked. I reiterate, is baked when you are given the guidance of eight and a half.
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