Larsen & Toubro reported a strong second quarter for FY27, with consolidated revenue rising 16% to Rs 78,750 crore and net profit climbing 33% to Rs 5,202 crore. The company secured record order inflows of Rs 147,665 crore, pushing its total consolidated order book to Rs 8.5 lakh crore. While international demand remains robust—contributing 58% of revenue—investors should monitor margin pressures in the infrastructure and energy segments.
L&T Posts 33% Profit Surge on Record Order Wins
Revenue grew to Rs 78,750 crore, while consolidated profit reached Rs 5,202 crore.
Reader Takeaway: Record order book provides multi-year revenue visibility, though margin compression in core segments warrants close monitoring.
What just happened
Larsen & Toubro reported strong Q2 FY27 financial results, marked by a 16% rise in revenue and a 33% increase in Profit After Tax (PAT). The highlight of the quarter was a record-breaking order inflow of Rs 147,665 crore, a 28% increase year-on-year. The consolidated order book now stands at a massive Rs 853,514 crore, signaling long-term operational momentum.
Why this matters
The record order book offers significant revenue visibility for the coming years. With international revenue now accounting for 58% of total income, the company is successfully diversifying its geographic risk. The ongoing divestment of L&T Metro Rail (Hyderabad) by year-end further demonstrates management’s focus on streamlining the balance sheet.
Segment Performance
Technology and Manufacturing remain the highest margin contributors, with Technology, Platforms & Services reporting a 19.5% EBITDA margin and Realty boasting 54.3%. However, the Infrastructure & Utilities segment, a traditional backbone for L&T, faced a 13% decline in new order inflows, indicating potential volatility in domestic project cycles.
Risks to watch
Investors should track EBITDA margin moderation in the Infrastructure and Energy segments. These pressures, stemming from project mix and execution costs, have prevented margin expansion despite the surge in top-line revenue. The ability to maintain execution speeds on massive domestic and international projects remains a key watch point.
Context Metrics
The company is currently executing its 'Lakshya 2031' strategic plan, which involves a reorganization of reporting segments. This restructuring is intended to sharpen capital allocation, though it introduces a temporary complexity in comparing current performance metrics against legacy quarterly data.