Mumbai, India – Larsen & Toubro (L&T) announced a significant financial upturn for the second quarter of fiscal year 2027 (Q2 FY27), with its consolidated net profit after tax soaring by 33% year-on-year to reach Rs 5,202 crore. This strong performance led to a notable 6.05% surge in the company's shares on Wednesday, touching a high of Rs 3,892 apiece.
Revenue and Record Order Inflows Drive Growth
The engineering and construction conglomerate reported a consolidated revenue from operations of Rs 78,750 crore for the quarter, marking a 16% increase compared to Rs 67,984 crore in the same period last year. A key highlight was the company's highest-ever quarterly order inflows, which climbed 28% year-on-year to Rs 1,47,665 crore.
As of September 30, 2026, L&T's consolidated order book stood at an impressive Rs 8,53,514 crore, reflecting a 15% growth since March 2026. International orders played a crucial role, contributing 63% of the quarter's total order inflows, amounting to Rs 92,375 crore. These international successes were primarily driven by high-value contracts in Hydrocarbon, CarbonLite Solutions, Public Spaces & Airports, and Power Transmission & Distribution sectors.
Profitability and Other Income Factors
Despite the robust revenue growth, operating profitability faced some pressure. Consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) reached Rs 6,840 crore, a slight increase from Rs 6,810 crore in the prior-year quarter. The EBITDA margin, however, narrowed to 8.7% from 10% a year earlier.
L&T attributed this margin compression to lower margins across its diverse portfolio and a shift in its revenue mix, with a higher contribution from Manufacturing, Products & Manufacturing-related businesses.
Significantly, other income saw a substantial rise, increasing to Rs 2,310 crore from Rs 1,380 crore. This boost was primarily supported by higher surplus funds, improved yields, and a one-time gain from the divestment of the SWC business within L&T Technology Services. This increase in other income provided crucial support to the overall consolidated profit growth for the quarter.