7 November 2026 | Curated by Gurdeep Singh, Amritsar, Punjab
Larsen & Toubro (L&T) reported strong growth in revenue, profit and new orders for the July–September quarter of FY2026–27. The engineering and infrastructure major benefited from higher execution across its projects, products and manufacturing businesses, while international markets accounted for more than half of quarterly revenue.
For Q2 FY27, L&T reported consolidated revenue of ₹78,750 crore, up 16% year-on-year. Profit after tax attributable to owners of the company increased 33% to ₹5,202 crore. The company also recorded quarterly order inflows of ₹1,47,665 crore, up 28% and its highest-ever quarterly order inflow.
Consolidated revenue from operations increased from ₹67,984 crore in Q2 FY26 to ₹78,750 crore in Q2 FY27. The company attributed the growth to accelerated progress across its Projects, Products and Manufacturing portfolio.
International revenue stood at approximately ₹45,870 crore, accounting for 58% of the quarter’s total revenue. This highlights L&T’s exposure to overseas infrastructure, energy and engineering markets, alongside its domestic project base.
For the first half of FY27, consolidated revenue reached ₹1,46,692 crore, an 11% increase over the corresponding period last year. International revenue for the half-year was ₹80,263 crore, representing 55% of total revenue.
Profit attributable to shareholders rises 33%
Consolidated profit after tax attributable to L&T shareholders rose to ₹5,202 crore from ₹3,926 crore in Q2 FY26. The increase was approximately 33% year-on-year.
The consolidated financial statement also reported profit after tax including the share of joint ventures and associates of approximately ₹5,949 crore. These are different measures: the ₹5,202-crore figure is the profit attributable to owners of the parent company, while the higher figure includes the share of profit from joint ventures and associates before attribution to non-controlling interests.
For H1 FY27, profit after tax attributable to owners stood at ₹9,325 crore, up 24% year-on-year. The half-year performance indicates that profit growth has remained positive across the first six months of the financial year.
Record quarterly order inflows strengthen the pipeline
The most notable operational highlight was quarterly order inflow of ₹1,47,665 crore, an increase of 28% over the year-ago quarter. A strong order pipeline can provide visibility for future project execution, although orders are converted into revenue over time and remain subject to project schedules, client approvals and execution conditions.
For an engineering and construction group, order inflows are an important forward-looking indicator. They show the volume of new work secured, but they do not represent revenue already earned or cash already collected. Investors should also examine order cancellations, project margins, working-capital requirements and the pace at which the backlog is executed.
International business remains a major contributor
With 58% of quarterly revenue generated internationally, L&T has significant exposure to projects outside India. Overseas diversification can expand the company’s addressable market and reduce dependence on a single geography, but it also brings exposure to currency movements, local regulations, geopolitical developments, payment cycles and execution risks.
For the company, the quality of international orders matters as much as their size. Timely delivery, cost control, contract terms and disciplined risk management determine whether a large order book translates into sustainable margins and cash flow.
Standalone and group performance should be read separately
L&T’s standalone revenue from operations was approximately ₹43,584 crore for the quarter, while standalone net profit after tax was about ₹3,370 crore. The consolidated business is substantially larger because it includes subsidiaries, joint ventures and associate companies.
Investors should avoid comparing standalone and consolidated numbers as if they were the same measure. The consolidated figures provide a broader view of the group’s operations, while standalone results focus on the parent company.
What should investors watch next?
Order execution: Whether the record order inflow converts into revenue at a healthy pace.
Project margins: Whether cost escalation, subcontracting and material prices affect profitability.
International exposure: How overseas projects perform amid currency, regulatory and geopolitical risks.
Working capital: Whether receivables, contract assets and customer advances remain disciplined as activity expands.
Cash generation: Whether reported profit is supported by operating cash flow.
Order quality: Whether new contracts offer appropriate risk allocation and sustainable returns.
The bigger picture
L&T’s Q2 FY27 results show strong growth across three key measures: revenue rose 16%, profit attributable to shareholders increased 33% and quarterly order inflows reached a record ₹1.48 lakh crore. International business contributed 58% of quarterly revenue, underlining the group’s global scale.
The next test is execution. A large order book creates an opportunity, but lasting financial performance depends on delivering projects on schedule, protecting margins and converting work into cash. L&T’s coming quarters will show whether the record order pipeline can sustain growth while maintaining financial discipline.
This article is for news and general information only. It is not investment advice or a recommendation to buy or sell any security. Readers should review the company’s official disclosures and consider their own financial circumstances before making investment decisions.
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