Larsen & Toubro Margin Trend — Quarter by Quarter

Larsen & Toubro's EBITDA margin moved from 13.0% in Q1 FY24 to 13.0% in Q4 FY26 across 12 quarters. Management commentary below explains the cost and pricing drivers mentioned on calls.

EBITDA Margin by Quarter

Quarter	EBITDA Margin (%)	YoY Change
Q4 FY26	13.0%	-60 bps
Q3 FY26	13.0%	+70 bps
Q2 FY26	13.0%	-30 bps
Q1 FY26	13.0%	-30 bps
Q3 FY25	12.0%	-70 bps
Q2 FY25	13.0%	-70 bps
Q4 FY25	13.0%	0 bps
Q1 FY25	13.0%	0 bps
Q4 FY24	13.0%	-90 bps
Q3 FY24	13.0%	-50 bps
Q2 FY24	14.0%	-40 bps
Q1 FY24	13.0%	-80 bps

What management said about ebitda margin

Q4 FY26 · FY27 PP&M margin stable at 7.8%

Projects, Products & Manufacturing segment margin expected to remain stable at 7.8% in FY27.

Q3 FY26 · Projects & manufacturing margin target of 8.5% for FY26

9M PM margin at 7.9% is in line with the full-year target of 8.5%, despite hydrocarbon margin softness.

Q2 FY26 · FY26 P&M EBITDA margin target of 8.5%

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.

Q1 FY26 · P&M margin target of 8.3%-8.5% for FY26

Products and manufacturing portfolio EBITDA margin is targeted in the 8.3%-8.5% range for the full year.

Q3 FY25 · P&M EBITDA margin guidance maintained at 8.2% for FY25

Despite 7.6% margin in 9M, management expects Q4 margin to be higher to achieve full-year target.

Q2 FY25 · P&M portfolio margin around 8.2-8.25% for FY25

Management expects P&M EBITDA margin to remain around the FY24 level of 8.2-8.25%.

Q4 FY25 · P&M margin target of 8.2-8.25% for FY25

Projects & Manufacturing margin guidance maintained; Q1 margins improved 20 bps to 7.6%, with infrastructure margins up 70 bps.

Q1 FY25 · P&M margin target of 8.2-8.25% for FY25

Management maintained the P&M margin guidance of 8.2-8.25% for FY25, with Q1 margins at 7.6% (up 20 bps YoY).

Q4 FY24 · P&M margin around 8.25% in FY25

Projects & Manufacturing margin expected to be similar to FY24's 8.25%, with mix and competitive pressures offset by volume growth.

Q3 FY24 · P&M EBITDA margin band of 8.25%-8.5% for FY24

Trimmed from earlier 8.5%-9% band due to postponement of margin recognition on new jobs into FY25.

Q2 FY24 · P&M margin guidance revised to 8.5%-9%

Projects & manufacturing EBITDA margin for FY24 is now expected in the range of 8.5%-9%, down from the initial 9% guidance, due to delayed margin recognition on new jobs.

Q2 FY24 · Margin trajectory to improve from FY25

Management expects margins in the projects & manufacturing portfolio to improve from the next financial year onwards, as legacy jobs conclude and new jobs ramp up.