Larsen & Toubro Profit Rises 33% to 5,202 Crore Rupees in Second Quarter
Key Facts
Larsen & Toubro reported a 33% rise in consolidated net profit to 5,202 crore rupees for the quarter ended September 2026, from 3,926 crore rupees in the same period a year earlier, according to figures reported by NDTV Profit. Profit came in above the market estimate of 4,342 crore rupees, while revenue was 78,750 crore rupees, up 16% year on year. Revenue exceeded the market estimate of 73,303 crore rupees and also topped the range analysts had forecast before the results. The figures put sales and net profit growth against weaker operating profit, which fell short of market estimates. The second quarter of fiscal 2027 was the reporting period.
Revenue rose from 67,984 crore rupees in the second quarter of fiscal 2026 to 78,750 crore rupees in the corresponding quarter of fiscal 2027, according to a comparison reported by NDTV Profit. Analysts' forecasts published before the results pointed to revenue of between 74,810 and 75,110 crore rupees, and annual growth of about 10%, according to Upstox. The actual result came in above that range and above the revenue estimate of 73,303 crore rupees reported by NDTV Profit. Net profit rose from 3,926 crore rupees a year earlier to 5,202 crore rupees. Pre-announcement estimates had expected it to remain broadly stable, amid concerns that geopolitical pressures could weigh on execution and margins in West Asia, according to Upstox.
Operating profit growth did not keep pace with the increase in revenue: EBITDA was about 6,845 crore rupees, up just 1% from 6,806 crore rupees a year earlier, according to NDTV Profit. The figure was below the market estimate of 6,999 crore rupees, despite exceeding the year-earlier level. The EBITDA margin fell to 8.7% from 10% in the corresponding quarter of fiscal 2026. This divergence between 16% revenue growth and limited EBITDA growth highlights a different aspect of the results from the jump in net profit. It also indicates that broader revenue did not bring comparable growth in operating profit during the quarter. The available figures did not provide a causal explanation for the divergence.
Results for the first quarter of fiscal 2027 provide a nearby comparison for the group's performance before the reported quarter. Consolidated revenue then stood at 67,942 crore rupees, up 7% year on year, while net profit was 4,123 crore rupees, an increase of 14%, according to a results disclosure cited by Financial Filings. Order inflows in that quarter were 108,014 crore rupees, up 14% year on year. Compared with the previous quarter of the same fiscal year, net profit in the latest quarter rose to 5,202 crore rupees from 4,123 crore rupees. These figures help place the reported annual growth in the context of successive fiscal quarters, while the results' primary comparison remains between corresponding quarters in different years.
Before the results were published, Larsen & Toubro shares closed at 3,680 rupees in the October 26 session, up 0.9%, according to Upstox. The stock was down 9.8% year to date as of that date. This movement came in the session before the second-quarter results announcement, so it does not represent the market's response to the reported figures. Pre-announcement data show a modest daily rise alongside negative year-to-date performance. Analysts' forecasts had focused on revenue growth and the impact of West Asia pressures on execution and margins, while the results published later showed revenue and net profit exceeding the estimates cited in coverage. The available evidence did not include the share price movement after the announcement or a subsequent date specified by the company.