Promises
4 promises
Promise Tracker
0 delivered, 0 close, 4 missed.
View Promises →
Larsen & Toubro Limited — Q3 FY26
L&T reported a strong Q3 FY26 with record order inflows of INR 1,356 billion (+17% YoY), driven by robust domestic and international demand.
bullish
high
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
L&T reported a strong Q3 FY26 with record order inflows of INR 1,356 billion (+17% YoY), driven by robust domestic and international demand. Group revenue grew 10% YoY to INR 714 billion, while recurring PAT surged 31% YoY to INR 44 billion, though reported PAT fell 4% due to a one-time labor code provision of INR 11.9 billion. EBITDA margin expanded 70 bps to 10.4%, aided by operational efficiencies. The projects & manufacturing margin improved 50 bps to 8.1%, but hydrocarbon margins remained soft due to legacy cost overruns. Management retained FY26 revenue growth guidance of 15% and PM margin target of 8.5%, while revising net working capital guidance down to ~10%. Key risks include prolonged margin pressure in hydrocarbons and execution delays in domestic water projects.
L&T ने तीसरी तिमाही में शानदार प्रदर्शन किया। कंपनी को 1,356 अरब रुपये के नए ऑर्डर मिले, जो पिछले साल से 17% ज़्यादा हैं। कुल कमाई 10% बढ़कर 714 अरब रुपये हुई। मुनाफा (PAT) 31% बढ़कर 44 अरब रुपये रहा, लेकिन एक बार के खर्च (कर्मचारी कानून के लिए 11.9 अरब रुपये) के कारण रिपोर्टेड मुनाफा 4% गिर गया। कंपनी ने लागत बचत से मार्जिन सुधारा। प्रबंधन ने इस साल 15% कमाई बढ़ोतरी का अनुमान बरकरार रखा है। मुख्य जोखिम: हाइड्रोकार्बन में कम मुनाफा और पानी के प्रोजेक्ट में देरी।
Promises0 met · 4 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
4 risks
Risk Intelligence
Hydrocarbon margin pressure from legacy projects
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Order Inflows
INR 1,356B
+17% YoY
Highest ever quarterly order inflows, led by strong domestic and international ordering momentum.
Order Book
INR 7.33T
+30% YoY
Record order book, with 51% domestic and 49% international; private sector share rose to 36%.
Net Working Capital to Sales
8.2%
-450bps YoY
Sharp improvement due to strong collections; revised FY26 target to ~10% from 12%.
L&T Realty Pre-sales
INR 60B
Highest ever quarterly
Record pre-sales driven by successful launch of Noida project with INR 40B in first week.
What Changed vs Last Quarter
NEW
Revised net working capital to sales target of ~10% for FY26
Improved to 8.2% in Dec 2025; revised target from 12% to ~10% by March 2026.
UPDATED
FY26 revenue growth guidance of 15% retained
Management is confident of achieving 15% full-year revenue growth, with Q4 execution ramp-up expected.
UPDATED
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.
UPDATED
Order inflow guidance to be exceeded
9M order inflow growth of 30% YoY; management expects to exceed the 10% full-year guidance.
DROPPED
FY26 working capital guidance unchanged at ~12%
Net working capital to revenue ratio is expected to be around 12% by March 2026, unchanged from prior guidance.
NEW RISK
Kuwait project cancellations may delay order inflows
Several Kuwait projects where L&T was competitive were canceled due to budget issues; though expected to re-tender, timing is uncertain.
NEW RISK
Commodity price volatility on fixed-price contracts
While steel is stable, copper and nickel volatility could impact unhedged portions; management believes exposure is manageable.
RISK GONE
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.
RISK GONE
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.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q2 FY26, Q3 FY25, Q4 FY25
Management is confident of exceeding the full-year guidance of 10% growth in group order inflows, citing strong H1 momentum and robust prospects pipeline.
Mentioned in Q1 FY26, Q2 FY25, Q2 FY26, Q3 FY25
With 49% of order book from international markets (84% Middle East), any geopolitical instability or supply chain disruptions could impact execution and margins.
Mentioned in Q1 FY26, Q2 FY25, Q3 FY25
Net working capital to revenue ratio is expected to be 12% as of March 2026.
Mentioned in Q1 FY25, Q4 FY25
Capital expenditure for the year expected to be around ₹4,000 crore, in line with previous guidance.
Mentioned in Q1 FY25, Q4 FY25
The prospects pipeline fell 10% YoY to ₹9.07 trillion, primarily due to a decline in hydrocarbon prospects, partly from Saudi Aramco's CapEx deferrals.
Fast read
Guidance and risk preview
Management is confident of achieving 15% full-year revenue growth, with Q4 execution ramp-up expected.
Cost overruns in a few competitively priced domestic and international projects are expected to persist for 2-3 quarters.
View Risks →