Synopsis: Giant cap EPC firm’s shares are within the focus at the moment after saying robust Q2 outcomes.
A Giant-cap firm that’s primarily engaged in offering engineering, procurement and development (EPC) options, is within the highlight at the moment after posting Q2FY26 outcomes. Learn the article under for detailed insights into its efficiency.
With a market capitalization of Rs. 5,48,544.22 crore, the shares of Larsen & Toubro Restricted closed at Rs. 3,987.80, up by 0.91 p.c from its earlier closing worth of Rs. 3,951.70. The inventory has touched an intraday excessive of Rs. 4,062.50 in at the moment’s buying and selling session.
Q2FY26 Outcomes
Larsen & Toubro Restricted reported Rs. 67,983.53 crore in income for the second quarter of FY26, an 10.44 p.c improve over the Rs. 61,554.58 crore for a similar interval in FY25. It elevated by 6.76 p.c as in comparison with Rs. 63,678.92 crore in Q1 FY26.
The corporate’s EBITDA for Q2 FY26 stood at Rs. 8,513 crore, up by 6.09 p.c from Rs. 8,024 crore in Q1 FY26, and inclined by 7.53 p.c from Rs. 7,917 crore in Q2 FY25.
The consolidated internet revenue for the second quarter of FY26 was Rs. 4,678.09 crore, which was 8.15 p.c increased than the Rs. 4,325.57 crore reported within the earlier quarter and elevated by 13.75 p.c from Rs. 4,112.81 crore in Q2 FY25. Revenue development was additionally mirrored in earnings per share (EPS), which elevated to roughly Rs. 28.54 in Q2 FY26 from Rs. 26.30 in Q1 FY26 and Rs. 24.69 in Q2 FY25.
Order E book Particulars
As of September 30, 2025, the corporate reported a strong order ebook of Rs. 6,67,000 Crores, reflecting 31 p.c YoY development, with 51 p.c home and 49 p.c worldwide orders. The order combine contains 59 p.c infrastructure, 32 p.c power, and 6 p.c hi-tech manufacturing, and three p.c from different segments. The corporate additionally maintains a wholesome prospect pipeline of Rs. 10.4 trillion for the close to time period.
Administration View
In response to S. N. Subrahmanyan, Chairman and Managing Director of L&T, the corporate delivered a robust all-round monetary efficiency, reinforcing its management within the EPC sector by way of constant order wins and execution throughout various geographies. He highlighted strong capex spending in India and the Center East, supporting a constructive outlook for brand new orders.
Subrahmanyan additionally famous the corporate’s settlement with the Telangana authorities to divest its stake in L&T Metro Rail (Hyderabad) as a part of its Lakshya 2026 technique to exit public concessions. He added that L&T is streamlining and increasing its technology-led companies to enrich its core operations, with the IT & TS portfolio performing strongly and L&T Finance displaying improved outcomes by way of its retail-focused, tech-driven method.
Income Phase
Infrastructure Initiatives Phase
The Infrastructure Initiatives phase reported order inflows of Rs. 52,686 crore in Q2 FY26, up 6 p.c YoY, pushed by main home and worldwide wins throughout Buildings & Factories, Heavy Civil Infrastructure, Energy Transmission & Distribution, and Renewables. Worldwide orders contributed 48 p.c of the entire inflows. The order ebook stood at Rs. 3,94,706 crore, with 43 p.c being worldwide. Income for the quarter declined 1 p.c YoY to Rs. 31,759 crore as a result of slower progress in water initiatives and prolonged monsoon situations. EBITDA margin improved to six.3 p.c from 6.0 p.c on the again of execution effectivity.
Vitality Initiatives Phase
The Vitality Initiatives phase recorded a pointy one hundred pc+ YoY development so as inflows to Rs. 38,156 crore, pushed by giant Hydrocarbon orders in each Onshore and Offshore companies, with 98 p.c of those being worldwide. The phase’s order ebook reached Rs. 2,14,496 crore, 71 p.c of which was worldwide. Income surged 48 p.c YoY to Rs. 13,082 crore, primarily from Hydrocarbon undertaking execution, with worldwide income contributing 78 p.c. EBITDA margin moderated to 7.3 p.c from 8.9 p.c as a result of undertaking variations on the closure stage.
Hello-Tech Manufacturing Phase
Order inflows within the Hello-Tech Manufacturing phase fell 34 p.c YoY to Rs. 2,582 crore as a result of deferred orders, although exports made up 18 p.c of the entire. The order ebook stood at Rs. 39,064 crore, with exports contributing 11 p.c. Income grew 33 p.c YoY to Rs. 2,754 crore, supported by improved execution in Heavy and Precision Engineering companies. EBITDA margin rose to 14.7 p.c from 12.8 p.c, reflecting stronger operational profitability.
IT & Know-how Providers Phase
The IT & Know-how Providers (IT&TS) phase posted revenues of Rs. 13,274 crore in Q2 FY26, a 13 p.c YoY rise, aided by improved spending throughout the IT sector. Worldwide billing accounted for 92 p.c of revenues. EBITDA margin dipped barely to twenty.2 p.c from 21.0 p.c as a result of increased prices from newly incubated companies and decrease margins in L&T Know-how Providers.
Monetary Providers Phase
The Monetary Providers phase registered a 9 p.c YoY improve in revenue to Rs. 4,166 crore, supported by increased disbursements in retail finance. The full mortgage ebook grew 10 p.c YoY to Rs. 1,07,096 crore, with retail loans now forming 98 p.c of the portfolio. Revenue earlier than tax rose to Rs. 989 crore from Rs. 940 crore, pushed by improved internet curiosity margins and payment revenue.
Improvement Initiatives Phase
Improvement Initiatives income elevated 10 p.c YoY to Rs. 1,533 crore in Q2 FY26. Nevertheless, EBIT declined to Rs. 87 crore from Rs. 125 crore as a result of provisions associated to an ongoing authorized matter in Nabha Energy. Improved profitability from L&T Metro Rail Hyderabad (L&TMRHL), aided by fare revisions, partially offset the influence.
Others Phase
The Others phase, comprising Realty, Industrial Valves, Building Gear, Mining Equipment, and Rubber Processing Equipment, noticed income decline 14 p.c YoY to Rs. 1,416 crore, primarily as a result of decrease residential unit handovers in Realty. Export gross sales fashioned 19 p.c of whole income, largely from the Industrial Valves enterprise. EBITDA margin improved sharply to 31.3 p.c from 25.1 p.c, boosted by the sale of a industrial property within the Realty division.
Concerning the firm
Larsen & Toubro Restricted (L&T), based in 1938 and headquartered in Mumbai, is a diversified EPC and know-how firm working in India and internationally. Its enterprise spans infrastructure and power initiatives, hi-tech manufacturing, IT and know-how providers, monetary providers, and improvement initiatives, providing options throughout development, energy, protection, aerospace, inexperienced power, and realty.
A return on fairness (ROE) of about 16.6 p.c, a return on capital employed (ROCE) of about 14.5 p.c and debt to fairness ratio of 1.36 exhibit the corporate’s monetary place. In the intervening time, the corporate’s P/E ratio is 34.1x increased as in comparison with its business P/E 22.2x.
Written By Akshay Sanghavi
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