L&T Q3 Results FY26: PAT at ₹3,215 Cr, Revenue Up 10% YoY

Engineering and infrastructure major Larsen & Toubro Ltd. (L&T) announced its Q3 FY26 results on 28 January 2026, with numbers reflecting a mixed performance. There was a drop in the company’s reported profit, but revenue continued to grow at a healthy pace. This indicates strong execution and steady momentum in its core operations.

Why Did the Profit Slump for the Third Quarter?

L&T reported a consolidated PAT of ₹3,215 crore, which was down by 4.3% year-on-year (YOY) in comparison to ₹3,359 crore in Q3 FY25. The decline wasn’t because of the weak business performance. It was mainly due to the one-time provision of ₹1,191 crore for employee benefits arising from the implementation of India’s new labour codes, which had to be booked as an exceptional item.

Excluding that, the situation is different. After adjustment of these charges, L&T’s recurring PAT for the quarter was ₹4,406 crore, which translated into 31% YOY growth.

What About Revenue Performance and EBITDA?

Revenue showed the movement in the right direction. Revenue from operations was ₹71,450 crore, which was by 10.5% as compared to ₹64,668 crore in Q3 FY25. This double-figure growth shows the steady project execution across L&T’s diversified businesses, specifically in the Projects & Manufacturing (P&M) segment.

Moreover, there was an increase in revenue of over 5% in comparison to Q2 FY26, which reflected sustained momentum quarter-on-quarter basis.

Operational profitability also saw a healthy improvement. EBITDA arrived at ₹7,417 crore, which was an 18.6 % increase YOY. EBITDA margins also expanded roughly by 10.4%, which was up from 9.67% a year ago.

This margin expansion shows better cost management and execution efficiency, even as the company faced inflationary pressures and absorbed the impact of the one-time labour code provision.

A Glance over Order Inflows & Backlog

L&T’s order pipeline remains a key strength. During the quarter, the company had the order inflows of ₹1,35,581 crore, which was an increase by 17% YOY. Its order book expanded to ₹7,33,161 crore, which reflected 30% YOY growth. This shows clear revenue visibility for the coming quarters.

Notably, international projects contributed around 49% of total order inflows. This shows L&T’s growing global presence and diversified geographical exposure.

How Management Responded?

Chairman & Managing Director S N Subrahmanyan described the quarter as a “landmark quarter”, and highlighted some major milestones:

• The company recorded its highest-ever quarterly order inflows.

• For the first time, the order book went above ₹7 lakh crore, which highlights the firm’s execution capabilities and business model resilience.

Looking ahead, Subrahmanyan sounded positive about the future. He expressed expectations of sustained capital expenditure along with policy support for domestic manufacturing and incentives for boosting infrastructure and technology-led growth.

What Are Takeaways for Investors?

L&T’s Q3 performance gives a positive signal for India’s infrastructure and capex cycle. Despite a headline profit dip caused by one-time labour code provision, there was still strong growth in revenue, expanding margins, and record order inflows.

The real message for investors is quite simple: don’t just focus on PAT. Once you eliminate the one-time charge, the growth in recurring profit and international exposure signals L&T’s long-term outlook. There are chances for short-term volatility, but for long-term investors, this is more of an opportunity to add on dips rather than to worry about the one-off impact of earnings.

Sources

infra. Economictimes

moneycontrol.com

Economic times

CNBC

livemint