L&T profit climbs 14%, order book hits ₹7.79 lakh cr record
Revenue rose 7% to ₹67,942 crore in Q1, while international orders now account for over half the backlog. A shell subsidiary merger keeps the simplification theme intact.
— 6 earlier stories on Larsen & Toubro Ltd. →What's new
- Q1 FY27 revenue up 7% to ₹67,942 cr; net profit up 14% to ₹4,123 cr
- Order inflow of ₹108,014 cr, up 14%, led by buildings, offshore wind, heavy engineering
- Board clears merger of wholly-owned shell L&T Power Development (nil revenue, net worth ₹2,703 cr) into parent
Why this matters
L&T's execution remains steady, with profit growth outpacing revenue. The record order book provides multi-year visibility, while the merger is a non-event cleanup step in a long-running portfolio simplification.
What we're watching
- Whether the international order pipeline sustains its >50% share
- Next steps in non-core asset exits (Nabha Power, Hyderabad Metro already done)
- Cost trends and project mix as profit growth outpaces revenue
The full read
L&T's first-quarter numbers are solid without being spectacular. Revenue rose 7% to ₹67,942 crore, and net profit jumped 14% to ₹4,123 crore (profit growth outpaced revenue). More striking is the order book: ₹7.79 lakh crore, a record. International orders now make up over half of that backlog, a structural shift helped by wins like the ₹15,000+ crore TenneT offshore wind framework. The board also approved merging a shell subsidiary, L&T Power Development, into the parent. It has nil revenue and a net worth of ₹2,703 crore, and no shares or cash will change hands. This is a cleanup step in L&T's long-running portfolio simplification, not a strategic move. None of this is price-sensitive. The results were in line with the trajectory the market already knew, and the merger is immaterial at this scale. For a company with a ₹5,80,062 crore market cap, this is a routine update confirming that the machine keeps humming.
Questions answered
- How did profit growth of 14% outpace revenue growth of 7%?
- The filing does not detail margin drivers, but better cost control or a richer project mix likely helped. The trend is consistent with prior quarters.
- What is L&T Power Development, and why merge it?
- It's a wholly-owned shell with nil revenue and a net worth of ₹2,703 cr. The merger simplifies structure; no shares or cash are exchanged, making it immaterial for a company of L&T's scale.
- Is the record order book sustainable?
- At ₹7.79 lakh cr, backlog provides strong forward visibility. However, the pace of new orders (₹108,014 cr in Q1) needs to remain healthy to keep the book from shrinking.
- Why is this filing considered routine?
- The results are in line with L&T's recent growth trajectory. The merger is an internal restructuring with no financial impact. The analyst note states no price-sensitive information that materially alters the investment case.
- What is the significance of international orders now >50% of backlog?
- Diversification reduces dependence on the domestic cycle. Recent large wins like the ₹15,000+ cr TenneT offshore wind framework show global competitiveness in energy infrastructure.
Larsen & Toubro Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on LT →- 28 Jul 2026 · 5:33 PM IST L&T profit climbs 14%, order book hits ₹7.79 lakh cr record
- today L&T's transport head resigns; routine shift for a conglomerate
- today L&T locks in ₹15,000+ cr offshore wind framework with TenneT
- 1d ago L&T lands ₹5,000-10,000 cr housing project in Mumbai
- 8d ago L&T bags ₹10,000-15,000 cr mega orders in metals & minerals