L&T Q3FY26: Profit Drops 4.3%, Order Book Surpasses ₹7 Trillion

Engineering and construction major Larsen & Toubro (L&T) reported a consolidated net profit of ₹3,215 crore for the third quarter of the financial year 2025-26 (Q3FY26). This represents a 4.3 percent decrease from the ₹3358.84 crore reported during the same period last year. The company also experienced an 18.1 percent sequential decline in net profit, down from ₹3926.09 crore.

Financial Performance & Key Factors

L&T attributed the decline in profit to one-time costs associated with the implementation of new Labour codes. Despite this, the company reported a recurring profit after tax (PAT) of ₹4,406 crore for the quarter ending December 31, 2025, a year-over-year increase of 31 percent. The total consolidated PAT of ₹3,215 crore includes a ₹1,191 crore provision for employee benefits related to these new Labour codes.

Did You Know? L&T’s consolidated order book reached ₹733,161 crore as of December 31, 2025, a 30 percent year-over-year growth.

Revenue from operations increased by 10.49 percent year-over-year to ₹71,449.7 crore, up from ₹64,667.78 crore in Q3FY25. Sequentially, revenue saw a 5.1 percent increase from ₹67,983.53 crore.

Order Book & Future Outlook

The company’s order book continues to grow, with international orders making up 49 percent of the total. According to S N Subrahmanyan, chairman and managing director of L&T, the company achieved its highest ever quarterly order inflow, exceeding ₹1 trillion in the Projects & Manufacturing (P&M) portfolio for the first time.

Expert Insight: The substantial order book growth, particularly exceeding the ₹1 trillion mark in the P&M portfolio, suggests a strong market position and potential for continued revenue generation for L&T. The company’s focus on sustainable execution and ESG principles, as highlighted by the chairman, could be key differentiators in securing future projects.

This growth has pushed the company’s overall order book past ₹7 trillion. Subrahmanyan stated this growth is driven by a commitment to sustainable execution, leveraging technology, and integrating ESG principles.

Financial Highlights

L&T reported an Ebitda of ₹7,417 crore for the quarter, a 19 percent year-over-year increase. The Ebitda margin also improved, rising to 10.4 percent from 9.7 percent during the same quarter last year. Shares of L&T closed at ₹3793.65 apiece on the BSE on Wednesday, ahead of the result announcement.

Frequently Asked Questions

What was L&T’s net profit for Q3FY26?

L&T reported a consolidated net profit of ₹3,215 crore for Q3FY26.

What caused the decline in L&T’s net profit?

The decline in net profit was attributed to one-time costs arising from the implementation of new Labour codes, specifically a ₹1,191 crore provision for employee benefits.

What is the current value of L&T’s order book?

As of December 31, 2025, L&T’s consolidated order book stood at ₹733,161 crore.

Given the company’s strong order book and increased revenue, what strategic investments might L&T pursue to further capitalize on its current momentum?