Larsen & Toubro Q2 FY27 results: net profit up 27.2% to ₹5,949 crore, revenue up 15.8%

How did Larsen & Toubro perform in Q2 FY27?

Larsen & Toubro reported consolidated revenue of ₹78,750 crore in Q2 FY27, up 15.8% from ₹67,984 crore in Q2 FY26 and 15.9% from ₹67,942 crore in Q1 FY27. EBITDA rose 0.6% year on year to ₹6,845 crore and increased 11.9% from ₹6,116 crore in the previous quarter. The EBITDA margin fell 1.3 percentage points from 10.0% to 8.7%.

Net profit was ₹5,949 crore, up 27.2% from ₹4,678 crore a year earlier and 19.3% from ₹4,988 crore in Q1 FY27. Basic EPS rose 32.5% year on year to ₹37.81 from ₹28.54 and increased 26.2% from ₹29.97 in the previous quarter. On a standalone basis, revenue was ₹43,583.58 crore and net profit was ₹3,370.12 crore, against a net loss of ₹3,591.17 crore in the year-ago quarter.

What changed in Larsen & Toubro's costs and profit?

Total expenses increased 16.5% from ₹63,032 crore in Q2 FY26 to ₹73,415 crore, outpacing the 15.8% increase in revenue. Cost of materials rose 21.9% by ₹5,396 crore, employee cost increased 9.7% by ₹1,260 crore, and other expenses increased 16.7% by ₹3,928 crore. Finance costs fell 38.0% by ₹289.87 crore and depreciation declined 5.0% by ₹54.86 crore.

Other income rose 66.6% by ₹921.98 crore to ₹2,306 crore, while profit before tax increased 20.6% by ₹1,305 crore to ₹7,641 crore. Tax expense increased 4.7% by ₹76.89 crore to ₹1,726 crore. There was no exceptional item. Management attributed the higher other income to larger group surplus funds, improved yields and a one-time gain from the divestment of the SWC business in LTTS.

How did the first half of FY27 go?

In H1 FY27, Larsen & Toubro reported revenue of ₹146,691.68 crore, up 11.4% from ₹131,662.45 crore in H1 FY26. Total income increased 12.6% to ₹151,374.67 crore, while profit before tax rose 19.4% to ₹14,563.32 crore. The company’s earnings presentation showed H1 revenue of ₹146,692 crore and reported PAT of ₹93.2 billion.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹484,727.31 crore, against ₹452,549.88 crore at 31 March 2026, while total equity rose to ₹133,255.4 crore from ₹128,530.46 crore. Borrowings increased to ₹136,227.05 crore from ₹121,683.02 crore, and cash fell to ₹14,620.39 crore from ₹15,391.24 crore. Inventories rose to ₹11,551.8 crore from ₹9,530.93 crore, trade receivables to ₹57,718.96 crore from ₹60,461.26 crore, and trade payables to ₹71,324.19 crore from ₹69,455.63 crore.

H1 FY27 operating cash flow was ₹5,750.53 crore, compared with ₹3,816.13 crore in H1 FY26. Investing cash flow was negative ₹12,600.67 crore against positive ₹1,055.68 crore, while financing cash flow was positive ₹6,147.88 crore against negative ₹7,485.18 crore. Capital expenditure was ₹2,563.06 crore, compared with ₹2,674.72 crore a year earlier.

How has Larsen & Toubro done over the last 8 quarters?

Revenue reached its highest point of the listed eight quarters at ₹82,762.16 crore in Q4 FY26 before falling to ₹67,941.74 crore in Q1 FY27 and rising to ₹78,749.94 crore in Q2 FY27. Net profit also peaked at ₹6,133.06 crore in Q4 FY26 and bottomed at ₹3,824.65 crore in Q3 FY26; it increased to ₹5,949.15 crore in Q2 FY27.

The EBITDA margin peaked at 10.4% in Q3 FY26 and Q4 FY26, then declined to 9.0% in Q1 FY27 and 8.7% in Q2 FY27. Revenue rose year on year in each of the last eight quarters, while profit rose year on year in each of the last two quarters.

Which businesses drove the quarter?

Infrastructure & Utilities reported revenue of ₹25,554.23 crore and EBIT of ₹1,144.3 crore, with an EBIT margin of 4.5%. The segment's customer revenue in the earnings release was ₹25,133 crore, up 6% from the year-ago quarter, and its EBITDA margin fell to 5.7% from 6.2%. Management attributed the contraction to cost pressures and a change in sales mix.

Energy – Conventional reported revenue of ₹17,289.39 crore and EBIT of ₹1,157.76 crore, with an EBIT margin of 6.7%. Segment customer revenue was ₹17,285 crore, up 29% from the year-ago quarter, while EBITDA margin fell to 7.4% from 8.2%. Energy – Green reported revenue of ₹11,493.93 crore, EBIT of ₹668.7 crore and an EBIT margin of 5.8%.

Financial Services reported revenue of ₹5,307.32 crore, up 27.4% from ₹4,166.33 crore, and EBIT of ₹1,318.85 crore against ₹988.89 crore. Its EBIT margin was 24.8%. Technology, Platforms & Services reported revenue of ₹14,938.76 crore, EBIT of ₹2,442.51 crore and an EBIT margin of 16.4%, while Manufacturing & Products reported revenue of ₹4,638.92 crore, EBIT of ₹610.16 crore and an EBIT margin of 13.2%.

What else did the company announce?

The board approved the consolidated and standalone unaudited financial results for the quarter and half-year ended 30 September 2026 on 27 October 2026. The company also filed an analyst presentation, a limited review, and statements covering the utilisation and deviation of issue proceeds. The same-day filings did not announce a dividend or fund raise, and no appointment was stated.

On 27 October 2026, L&T filed that its Transportation Infrastructure business had secured major design-and-build orders for two systems packages of Dhaka Metro Line 1 in Bangladesh. The packages cover track works and electrical systems, and signalling, telecommunications and platform screen doors; the project is funded by the Japan International Cooperation Agency and spans approximately 31 km.

What did Larsen & Toubro's management say?

Management said the company was well positioned to sustain its growth momentum and would continue investing in innovation, digital capabilities and technology-led businesses. It also said the order book of ₹8.5 lakh crore provided multi-year revenue visibility, while focused execution across Projects, Products and Manufacturing supported higher revenue growth. The earnings call transcript was filed on 2 November 2026 for the call held on 27 October 2026.

Management attributed revenue growth to accelerated activity in Projects, Products and Manufacturing, while higher group surplus funds, improved yields and a one-time divestment gain supported other income. It said the lower finance charge was mainly due to the non-consolidation of Hyderabad Metro and lower standalone debt. No formal guidance change, specific analyst concerns or additional risk commentary was provided in the available management records.

How did Larsen & Toubro shares react?

Larsen & Toubro was up 1.3% five minutes after the filing, 0.1% after 15 minutes and 0.5% after 30 minutes. The stock closed 3.7% higher on the reaction day from its pre-results close and was 4.7% higher by the next day's close. The Civil Construction industry median rose 0.1% on the reaction day and 1.3% by the next day's close.

L&T exceeded the industry median's reaction-day move by 3.7 percentage points and the next-day cumulative move by 3.5 percentage points. The Nifty 100 fell 0.2% on the reaction day and was 0.9% higher by the next day's close. Earlier reaction-day moves included gains of 2.5% on 28 July 2026, 3.7% on 28 January 2026 and 4.9% on 29 July 2025, and a fall of 1.5% on 5 May 2026.

How did other Civil Construction companies do?

Nineteen other Civil Construction companies that had filed for the quarter were compared with Larsen & Toubro. Their median revenue growth was 7.6%, while 14 of the 20 peers for which profit data was available reported higher profit. Eleven peers grew more slowly than Larsen & Toubro and eight grew faster, based on the revenue-growth comparison.