L&T Reports Record FY26 Orders Up 22%, Recommends ₹38 Dividend

Larsen & Toubro (L&T) announced its audited financial results for the fiscal year ended March 31, 2026, reporting a strong performance across key metrics. Group Order Inflows reached an all-time high of ₹435,590 crore for FY26, a 22% year-on-year surge. Consolidated revenues climbed 12% YoY to ₹285,874 crore. The Consolidated Order Book stood at ₹740,327 crore as of March 31, 2026, up 28% YoY.

FY26 Financial Highlights

Recurring Profit After Tax (PAT) showed strong growth of 18% YoY, totalling ₹17,238 crore. Total Consolidated PAT for the year was ₹16,084 crore.

For the fourth quarter (Q4 FY26), Group Order Inflows were ₹89,772 crore, with revenues at ₹82,762 crore, both up 11% YoY. Recurring PAT for the quarter increased by 5% YoY to ₹5,289 crore, while Total Consolidated PAT saw a slight dip of 3% YoY to ₹5,326 crore.

Strategic Importance

This robust annual performance highlights L&T's execution strength and the healthy demand for infrastructure and engineering services in India. The record order book provides excellent visibility for future revenue streams.

The Board of Directors recommended a final dividend of ₹38 per equity share, signaling confidence in sustained profitability and a commitment to shareholder returns. This recommendation is subject to shareholder approval at the upcoming Annual General Meeting (AGM).

The strategic move to exit the concessions portfolio aligns with L&T's 'Lakshya'31' plan, which aims for enhanced focus and financial efficiency.

Future Focus and Divestments

L&T's strategic blueprint, 'Lakshya'31', guides its future direction. The plan prioritizes investments and growth in cutting-edge areas such as Artificial Intelligence (AI), data centers, green energy, and industrial electronics.

In line with its strategy to exit non-core assets, the company is progressing with the divestment of its entire stakes in Nabha Power Limited and L&T Metro Rail (Hyderabad) Limited. These transactions are anticipated to be completed by June 30, 2026, simplifying L&T's business structure.

Key Changes and Governance

Shareholders can anticipate the final dividend payout of ₹38 per share, pending necessary approvals.

The planned divestments are expected to conclude by mid-2026.

New board appointments and a CFO transition will guide the company's governance and financial management.

The company's focus on AI, data centres, and green energy under 'Lakshya'31' signals a pivot towards high-growth technology and sustainability sectors.

Industry Context

Larsen & Toubro operates as a unique, diversified conglomerate in India. While direct peers are scarce, companies like Siemens India and ABB India compete in specific engineering and automation segments, focusing on digitalization and electrification. Reliance Industries, another major conglomerate, also undertakes large-scale infrastructure and energy projects, showcasing India's growing capabilities in these sectors.

What to Track Next

• Shareholder approval for the recommended final dividend of ₹38 per share.
• The successful closure of the divestment transactions for Nabha Power Limited and L&T Metro Rail (Hyderabad) Limited by the stipulated deadline.
• The strategic effectiveness and market reception of new board appointments and the CFO transition.
• Progress and initial financial indicators from the 'Lakshya'31' plan's focus areas like AI and green energy.