Larsen & Toubro Reports Q1 Results, Approves Merger of L&T Power Development Limited
Larsen & Toubro Limited (L&T) announced the approval of its consolidated and standalone unaudited financial results for the quarter ended June 30, 2026. The company also approved a Scheme of Amalgamation involving its wholly owned subsidiary, L&T Power Development Limited, marking a significant move toward portfolio rationalization.The Board of Directors held a meeting on July 28, 2026, and ratified the financial results for the first quarter of fiscal year 2026. The company reported consolidated revenues of ₹ 67,942 crore, representing a 7% year-on-year increase. For the same period, L&T posted a Consolidated Profit After Tax (PAT) of ₹ 4,123 crore, reflecting a 14% growth.
International revenues contributed ₹ 34,393 crore to the total consolidated revenue, accounting for 51%. The company secured orders totaling ₹ 108,014 crore, marking a 14% increase year-on-year. The overall consolidated order book stood at ₹ 778,954 crore as of June 30, 2026.
S N Subrahmanyan, Chairman and Managing Director, commented on the results, stating that L&T managed to maintain momentum despite geopolitical uncertainties by rotating focus across various sectors and geographies. He added that the performance reflects the portfolio’s resilience.
Key strategic developments shared during the quarter included concluding the sale of Nabha Power Limited and signing a Share Purchase Agreement with Hyderabad Metro Rail Limited (HMRL) for the divestment of their 100% stake in the Hyderabad Metro SPV.
Merging L&T Power Development into Core Business
The Board approved a Scheme of Amalgamation between Larsen & Toubro Limited and its wholly owned subsidiary, L&T Power Development Limited. The merger is designed to streamline the management structure, rationalizing administrative efforts and centralizing all pending litigations and contingent liabilities associated with the power development portfolio at the Transferee Company's level.Under the Scheme, which aims to simplify the group structure, the residual assets, investments, and contractual rights of the Transferor Company will seamlessly vest in the Transferee Company (L&T). The process is subject to necessary sanctions by the Mumbai bench of the National Company Law Tribunal.
Q1 FY'26 Segment Performance Highlights
The company’s operational segments were realigned effective April 01, 2026, as part of its Lakshya 2031 strategic plan. The company reports segment results based on this revised structure.| Segment | Order Inflow (₹ crore) | Customer Revenue (₹ crore) | EBITDA Margin (%) |
|---|---|---|---|
| Infrastructure & Utilities | 44,357 | 21,858 | 5.1% |
| Energy - Conventional | 3,053 | 14,239 | 7.6% |
| Energy - Green | 33,042 | 5,607 | 6.0% |
| Manufacturing & Products | 5,535 | 4,486 | 15.2% |
| Technology, Platforms & Services | N/A | 14,627 | 19.2% |
| Financial Services | N/A | 5,042 | N/A |
| Realty | 1,299 | 1,009 | 36.9% |
| Development Projects | N/A | 1,074 | N/A |
The Technology, Platforms & Services segment reported customer revenues of ₹ 14,627 crore, showing a 15% year-on-year growth, while the Realty Segment saw order inflows of ₹ 1,299 crore and recorded customer revenues of ₹ 1,009 crore.
The Infrastructure & Utilities segment secured order inflow of ₹ 44,357 crore, registering over 100% year-on-year growth for Residential & Commercial buildings and Ferrous Metal projects. Conversely, the segment reported customer revenues of ₹ 21,858 crore, marking a 3% decline due to execution challenges in Water & Effluent Treatment.
Financial Summary of Key Parameters
The following table provides key operational parameters for L&T for the quarter ended June 30, 2026:| Key Parameter | Q1 FY'26 (₹ crore) | % Change Y-o-Y |
|---|---|---|
| Revenue from operations | 67,942 | 7% |
| Consolidated Profit After Tax | 4,123 | 14% |
| Total operational expenses | 61,826 | N/A |
| EBITDA | 6,116 | (3%) |
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LT Stock Price Movement
Today, Larsen & Toubro Limited shares edged higher to settle at ₹3832, closing with a 0.63% gain in the post-market session. The equity saw healthy activity as 1.70 million shares were traded during the day.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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