L&T Group achieved record order inflows of INR 4,35,590 crore during FY 2025–26, with the Infrastructure segment accounting for 46% of the overall order inflow

L&T Group achieved record order inflows of INR 4,35,590 crore during FY 2025–26, with the Infrastructure segment accounting for 46% of the overall order inflow

Annual progress summary of L&T Group for FY 25-26

The Print Times

As the economic environment continues to evolve, shaped by geopolitical developments, Larsen & Toubro has delivered a well-rounded performance across its businesses, covering diverse sectors and geographies. L&T Group remained focused on maximising shareholder value by divesting identified non-core assets, driving operational excellence through digital initiatives to enhance cost competitiveness, strengthening working capital discipline and funds management, and ensuring effective and profitable execution of its robust order book.

As at March 31, 2026, the L&T Group comprised 90 subsidiaries, 5 associate companies, 9 joint ventures and 35 jointly held operations. The majority of the Group’s entities serve as strategic extensions of the Company’s diversified business model, enabling expansion into new geographies, technologies and specialised business segments.

L&T Group achieved record order inflows of INR 4,35,590 crore during FY 2025-26, registering a growth of 22.1% over the previous year, the highest in the Company’s history. The growth was driven by the strong investment momentum in West Asia, sustained policy-led capex impetus by the Government of India, and an increasing participation of private sector enterprises in the domestic market. The buoyancy in West Asian businesses resulted in international orders accounting for 58% of total order inflows, reflecting a stable geographic mix.

The year witnessed the booking of some noteworthy orders across businesses. The Infrastructure segment received an international High-Speed Rail order under the Heavy Civil Infrastructure unit; multiple RE and transmission projects from West Asia under the Power Transmission & Distribution and Renewables businesses; multiple ultra-mega orders in the Hydrocarbon business across its verticals; and domestic BTG orders within the CarbonLite Solutions business.

The Infrastructure segment continued to be the largest contributor to the Company’s business portfolio, accounting for 46% of the overall order inflow, compared with 49% in the previous year.

As at March 31, 2026, the order book is at a record level of INR 7,40,327 crore, providing strong multi-year revenue visibility for the Group. The infrastructure segment remained the largest contributor to the consolidated order book, accounting for 57% of the total as at the year-end.

The order book registered a growth of 27.8% on a y-o-y basis, primarily driven by the intake of several high-value orders during the year. As on March 2026, around 61% of the total order book comprised orders received from Government of India, state governments (including local authorities) and public sector enterprises, both domestic and international. The share of the private sector has increased to 39% of the total order book as on March 2026, compared with 28% as on March 2025. Of the domestic order book, 19% of the orders are funded by multilateral agencies.

The share of the international orders in the consolidated order book increased from 46% to 52%, on account of higher international order intake during the year.

L&T Group recorded revenue of INR 2,85,874 crore during FY 2025-26, registering a growth of 11.8% y-o-y. The growth was primarily driven by execution progress across project and manufacturing businesses. The share of international revenue at the Group level increased to 54% in FY 2025-26, compared with 50% in the previous year, reflecting strong execution and order conversion in overseas markets.

During the year, growth was visible across most of the segments. FY 2025 26 revenue growth was driven by strong execution in Energy Projects, IT & Technology Services and Hi Tech Manufacturing, reflecting improved order conversion and scaling of technology led businesses. Infrastructure revenue remained stable, Financial Services recorded steady growth, while there was a marginal decline in Development Projects business.

Manufacturing, Construction and Operating (MCO) expenses for FY 2025-26 were at INR 1,92,837 crore representing an increase of 12.8% over the previous year. These expenses primarily comprise the cost of construction materials, raw materials and components, sub-contracting expenses, and interest costs in the Financial Services business. MCO expenses constituted 67.5% of revenue, compared with 66.9% in the previous year, mainly due to cost pressures in some projects within the portfolio of Project & Manufacturing businesses.

Staff expenses for the year FY 2025-26 were at INR 52,187 crore, an increase of 11.6% over the previous year, reflecting a combination of employee additions and salary revisions.

As a percentage of revenue, staff costs remain broadly stable. The Group continues to focus on productivity improvements, digitalisation and manpower optimisation across its businesses.

Sales and administration expenses increased to INR 11,699 crore, a modest increase of 1.2% y-o-y. These expenses accounted for 4.1% of revenue, compared with 4.5% in the previous year. The Group’s operating profit for FY 2025-26 increased to INR 29,151 crore, registering a growth of 10.3% y-o-y, largely driven by higher business volumes. The EBITDA margin for FY 2025-26 was 10.2%.

Overall margin performance was impacted by execution related time and cost pressures in the Infrastructure and Energy segments, including higher provisioning on contract assets and customer receivables. Cost optimisation and execution related savings achieved in select projects partially mitigated the impact on margins.

The Infrastructure segment secured orders worth INR 1,99,064 crore in FY 2025-26, representing a growth of 14.9% over the previous year, driven by the receipt of multiple orders across various sub-segments. During the current year, the Heavy Civil Infrastructure business registered growth, buoyed by the receipt of an international High-Speed Rail (HSR) order. The Power Transmission & Distribution and Renewables businesses also benefitted from the receipt of multiple international orders for transmission lines, substation orders and RE projects, respectively. Similarly, the Transportation Infrastructure business registered growth over the previous year with receipt of multiple orders for roads, runways and a domestic HSR track package.

The Minerals & Metals business registered moderate growth during FY 2025-26. The Buildings & Factories business registered decline, attributable to a high-base effect, as well as deferment of targeted prospects during the year. The Water & Effluent Treatment business recorded a decline, reflecting selective engagement in the tendering process. The share of international orders for the Infrastructure segment declined marginally to 59% from 61% in the previous year. However, the share of West Asia in overall international order inflow for the segment increased to 79% compared to 69% in the previous year. The lower share in the previous year was influenced by the receipt of orders in a CIS country, resulting in a comparatively more diversified geographical mix.

The Infrastructure segment registered revenue of INR 1,35,345 crore for FY 2025-26, a moderate growth of 3.1% over the previous year. The lower growth was mainly on account of Water & Effluent Treatment business which was impacted by customer project funding constraints leading to procurement delays and workforce deployment challenges. Revenue from international operations constituted 44% of the total revenue for FY 2025-26 compared to 41% in the previous year.

The segment’s operating margin for FY 2025-26 marginally improved to 6.9% from 6.4% in the previous year due to execution cost-savings across many sites. The funds employed by the segment at INR 21,814 crore as at March 31, 2026, registered decline of 12.8% vis-à-vis March 31, 2025, mainly on account of favourable movement in working capital.
 

Published at : Sep 21, 2026 09:54 AM (IST)

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