Larsen & Toubro Stock Earnings Reports

Larsen & Toubro (L&T) reported a strong Q2 / H1 FY'26 with robust order momentum and healthy financials. Group order inflows rose 45% YoY in Q2 to INR 1,158 billion and the order book expanded to INR 6.67 trillion (up 31% YoY), providing multi-year revenue visibility. Group revenues grew 10% YoY in Q2 (INR 680 billion) and consolidated PAT increased 16% YoY to INR 39 billion. Key business highlights include large ultra‑mega hydrocarbon wins in the Middle East, strategic MOUs and partnerships in renewables, green ammonia, defence (AMCA consortium with BEL), and semiconductor technology (acquisition of Fujitsu General Electronics power module assets and an MOU with IISc for a 2D innovation hub). L&T secured a USD 700m sustainability‑linked trade finance facility and reached an in‑principle agreement for the Telangana government to take over Hyderabad Metro SPV (transaction expected by end FY'26). Segmental notes: Infrastructure revenues were marginally down (extended monsoon, slower rural water projects) but infra margin improved to 6.3%; Energy segment revenues jumped 48% driven by hydrocarbon execution but margins were under pressure (7.3%) due to cost overruns on a few closing projects; Hi‑Tech Manufacturing and IT/Tech Services grew strongly, while Realty showed high margin variability tied to handovers. Working capital improved (NWC/revenue 10.2%, down ~200 bps YoY) and trailing 12‑month ROE rose to 17.2%. Guidance: management expects to exceed FY'26 order inflow growth guidance (10%), maintains full‑year revenue growth guidance of 15%, and targets an 8.5% full‑year EBITDA margin for Projects & Manufacturing; NWC target remains ~12% by March 2026. Risks called out include sector‑specific execution challenges (water projects, some hydrocarbons) and near‑term softness in Energy margins, which management says is already factored into guidance.