Larsen & Toubro Reports Q1 FY27 Results with Revenue at ₹679 Billion and Order Book Reaching ₹7,790 Billion
Larsen & Toubro Limited reported strong performance in its first quarter of Fiscal Year 2027 (Q1 FY27), demonstrating robust order inflow and operational resilience amid market complexities. The company posted a total revenue of ₹679 billion and increased its Order Book significantly to ₹7,790 billion.The firm recorded Profit After Tax (PAT) at ₹41 billion for Q1 FY27, marking a 14% year-on-year growth from the previous period’s results.
Key financial indicators highlighted during the quarter include:
- Order Inflow: Increased by 14% year-on-year to reach ₹1,080 billion.
- Revenue: Grew by 7% year-on-year to ₹679 billion.
- Order Book: Expanded by 27% year-on-year to ₹7,790 billion.
- Return on Equity (ROE): Stood at 16.1%.
The company also reported a substantial 520 basis points (bps) improvement in Profit After Tax. Net Working Capital was recorded at 4.9%, down from 10.1% in the previous period, and the firm’s ROE was reported at 16.1%.
A comparative look at key financial indicators for L&T across Q1 FY26 and Q1 FY27 is provided below:
| Particulars | Q1 FY26 (₹ bn) | Q1 FY27 (₹ bn) | % Var |
|---|---|---|---|
| Order Inflow | 945 | 1080 | 14% |
| Order Book | 6128 | 7790 | 27% |
| Revenue | 637 | 679 | 7% |
| Reported PAT | 36 | 41 | 14% |
| Net Working Capital (NWC%) | 10.1% | 4.9% | - |
Strategic Developments and Operational Highlights
In terms of strategic growth, L&T has made several key developments:- Divestiture: The divestment of Nabha Power was completed on June 25, 2026.
- Stake Divestment: A Share Purchase Agreement (SPA) has been signed for the divestment of LTMRHL’s stake to Hyderabad Metro Rail Ltd.
- Technology Partnerships: L&T Vyoma partnered with Fortanix to provide sovereign and secure AI cloud solutions. The Electronic Products & Systems business also partnered with Israel based EVR Motors for next-generation EV traction motors.
- Defense Sector Involvement: A partnership was formed with France-based Exail to develop an Advanced Unmanned Mine Counter-Measure Suite, which received a 'Baa1' rating from Moody’s Ratings.
- Acquisition Interest: LTM has issued an offer to acquire Randstad's Technology and Consulting Services business.
Segment Performance Analysis
The segment performance review provided insights into the operations across different divisions:The Technology, Platforms & Services division showed strong momentum, with Income from Operations reaching ₹50.4 billion, a 27% increase year-on-year (YoY). The PAT for this segment stood at ₹9.0 billion, reflecting a 29% YoY growth.
In the Manufacturing & Products segment, revenue experienced growth, yet margin declined by 230 bps. This decline was attributed to changes in the sales mix within the segment.
The performance across various segments is detailed as follows:
| Segment | Q1 FY26 Net Revenue (₹ Cr) | Q1 FY27 Net Revenue (₹ Cr) | Key Trend |
|---|---|---|---|
| Infrastructure & Utilities | 22421 | 21858 | Margin stability noted. |
| Energy - Conventional | 12463 | 14239 | Stable revenue growth (7.6% YoY). |
| Energy - Green | 6335 | 5607 | Exhibited a decline in revenue due to supply chain disruptions in the Solar business. |
| Manufacturing & Products | 4104 | 4486 | Strong execution momentum noted, despite margin changes. |
| Technology, Platforms & Services | 12678 | 2803 | Segment showed strong growth across operational metrics. |
Financial Structure and Liquidity
The company’s balance sheet status also provided insights into its financial health:| Metric | Q1 FY26 | Q1 FY27 |
|---|---|---|
| Net Working Capital (%) | 10.1% | 4.9% |
| Return on Equity (ROE) | 17.0% | 16.1% |
In terms of liquidity, the Gross Debt to Equity Ratio stood at 0.95 in Q1 FY26 and subsequently improved to 0.39 in Q1 FY27. Cash and Cash Equivalents for the L&T Group stood at ₹804 billion in March 2026 and increased to ₹851 billion by June 2026.
LT Stock Price Movement
Today, shares of Larsen & Toubro Limited edged higher to close at ₹3832, gaining 0.63%. The stock traded within an intraday range of ₹3793 to ₹3837 and saw over 1.7 million shares exchanged during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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