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Larsen & Toubro Limited — Q4 FY26
L&T reported Q4 FY26 group revenue of INR 82,800 crore (+11% YoY), slightly below guidance due to West Asia conflict disruptions and water project delays.
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L&T reported Q4 FY26 group revenue of INR 82,800 crore (+11% YoY), slightly below guidance due to West Asia conflict disruptions and water project delays. EBITDA margin contracted 60bps to 10.4%, impacted by revenue mix and legacy project costs in energy. PAT declined 3% YoY to INR 5,300 crore on a high base from prior-year impairment reversal. Order book surged 28% to INR 7.40 trillion, driven by strong domestic private sector and Middle East awards. Management guided FY27 order inflow and revenue growth of 10%-12%, with margins stable at 7.8% for the redefined PP&M segment. The Lakshya 2031 plan targets 12%-15% revenue CAGR and 16%-17% ROE, with INR 50bn+ investments in electronics, green hydrogen, and data centers. Key risk: supply chain disruptions in Middle East could persist longer than anticipated, impacting H1 execution.
L&T ने चौथी तिमाही (जनवरी-मार्च 2026) में 82,800 करोड़ रुपये की कमाई की, जो पिछले साल से 11% ज्यादा है। यह उम्मीद से थोड़ा कम रहा क्योंकि पश्चिम एशिया में लड़ाई और पानी के प्रोजेक्ट्स में देरी हुई। मुनाफा (EBITDA) 10.4% रहा, जो पिछले साल से 0.6% कम है, क्योंकि कुछ पुराने प्रोजेक्ट्स की लागत बढ़ गई। शुद्ध मुनाफा (PAT) 5,300 करोड़ रुपये रहा, जो पिछले साल से 3% कम है, क्योंकि पिछले साल एक बार का फायदा हुआ था। ऑर्डर बुक 28% बढ़कर 7.40 लाख करोड़ रुपये हो गया, जिसमें भारत के निजी क्षेत्र और मिडिल ईस्ट के ऑर्डर शामिल हैं। कंपनी ने अगले साल 10-12% कमाई और ऑर्डर बढ़ने का अनुमान लगाया है। लक्ष्य 2031 योजना के तहत 12-15% सालाना कमाई बढ़ाने और 16-17% रिटर्न (ROE) हासिल करने का लक्ष्य है। इलेक्ट्रॉनिक्स, ग्रीन हाइड्रोजन और डेटा सेंटर में 50,000 करोड़ रुपये से ज्यादा निवेश किया जाएगा। खतरा: मिडिल ईस्ट में सप्लाई चेन की समस्या लंबी चल सकती है, जिससे पहली छ
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Order Book
INR 7.40 trillion
+28% YoY
Order book as of March 2026, providing strong revenue visibility.
Order Inflow (Q4)
INR 898 billion
flat YoY
Q4 order inflows broadly in line with prior year, supported by international orders.
Prospects Pipeline (FY27)
INR 17.8 trillion
-6% YoY
Prospects pipeline declined from INR 19.0 trillion, mainly due to lower energy prospects.
Net Working Capital to Sales
4.1%
-690bps YoY
Sharp improvement in working capital, aided by higher advances and vendor credit.
What Changed vs Last Quarter
NEW
FY27 order inflow growth 10%-12%
Group order inflows expected to grow 10%-12% in FY27, supported by a prospects pipeline of INR 17.8 trillion.
NEW
FY27 revenue growth 10%-12%
Revenue growth guided at 10%-12% for FY27, with softer H1 due to supply chain disruptions and recovery in H2.
NEW
FY27 PP&M margin stable at 7.8%
Projects, Products & Manufacturing segment margin expected to remain stable at 7.8% in FY27.
NEW
Lakshya 2031: 12%-15% revenue CAGR, 16%-17% ROE
Over five years, L&T targets order inflow CAGR of 10%-12%, revenue CAGR of 12%-15%, and ROE of 16%-17%.
DROPPED
FY26 revenue growth guidance of 15% retained
Management is confident of achieving 15% full-year revenue growth, with Q4 execution ramp-up expected.
DROPPED
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.
DROPPED
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.
DROPPED
Order inflow guidance to be exceeded
9M order inflow growth of 30% YoY; management expects to exceed the 10% full-year guidance.
NEW RISK
Middle East supply chain disruption
Logistics and insurance costs have risen materially; management is negotiating cost pass-through with clients, but uncertainty remains.
NEW RISK
Legacy project cost overruns in energy segment
Energy segment margins fell to 6.5% due to cost overruns in legacy hydrocarbon projects; management expects improvement only after a couple of quarters.
NEW RISK
Potential margin pressure from fixed-price contracts
Analyst raised concern about fixed-price Middle East orders amid inflation; management cited contractual provisions and client negotiations, but outcome is uncertain.
RISK GONE
Hydrocarbon margin pressure from legacy projects
Cost overruns in a few competitively priced domestic and international projects are expected to persist for 2-3 quarters.
RISK GONE
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.
RISK GONE
Commodity price volatility on fixed-price contracts
While steel is stable, copper and nickel volatility could impact unhedged portions; management believes exposure is manageable.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q3 FY25, Q3 FY26, Q4 FY25
9M PM margin at 7.9% is in line with the full-year target of 8.5%, despite hydrocarbon margin softness.
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 FY25, Q3 FY26, Q4 FY25
While steel is stable, copper and nickel volatility could impact unhedged portions; management believes exposure is manageable.
Mentioned in Q1 FY26, Q2 FY26, Q3 FY26
Water segment revenue dragged infra growth due to fund allocation issues; management expects resolution within a quarter.
Mentioned in Q1 FY26, Q2 FY25, Q3 FY25
Net working capital to revenue ratio is expected to be 12% as of March 2026.
Fast read
Guidance and risk preview
Group order inflows expected to grow 10%-12% in FY27, supported by a prospects pipeline of INR 17.8 trillion.
Logistics and insurance costs have risen materially; management is negotiating cost pass-through with clients, but uncertainty remains.
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