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LT Diversified 23 Oct 2025

Larsen & Toubro Limited — Q2 FY26

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).

bullish high
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Revenue ₹67,984 Cr +10%
EBITDA
PAT ₹4,678 Cr +16%
EBITDA Margin 13% -30bps
Duration 60 min
Read Time 1 min read

✓ Verified against BSE filing

Risk Intelligence

Material risks this quarter

Concise cards keep the risk register scannable while preserving evidence-level context in the underlying quarter data.

Risks

R

Cost overruns in legacy hydrocarbon projects

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.

medium · management_commentary
R

Execution slowdown in water infrastructure

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.

medium · management_commentary
R

Geopolitical and execution risks in Middle East

With 49% of order book from international markets (84% Middle East), any geopolitical instability or supply chain disruptions could impact execution and margins.

medium · analyst_question
R

Margin pressure from IT&TS segment

Group EBITDA margin declined 30bps YoY primarily due to margin compression in IT&TS segment, which could persist if demand environment remains challenging.

low · data_observation