L&T Achieves Historic Quarterly Order Inflow, Surpassing ₹7 Trillion Order Book
In a remarkable performance that exceeded market expectations, Larsen & Toubro Ltd (L&T), India's premier engineering and construction conglomerate, has reported its highest-ever quarterly order inflows for the October-December 2025 period. The company secured fresh orders worth a staggering ₹1.36 trillion during the third quarter of fiscal year 2026, marking a substantial 17% year-on-year increase. This achievement has propelled L&T's total order book to an unprecedented ₹7.33 trillion by the end of Q3—the first instance in the company's history where it has crossed the monumental ₹7 trillion threshold.
Market Surprise and Analyst Perspectives
The market was taken aback by these figures, as analysts had anticipated order bookings in the range of ₹90,000-1,00,000 crore for the quarter. Amit Anwani, Vice President and Lead Analyst for Capital Goods, Industrials and Defence at brokerage PL Capital, noted that this growth is primarily fueled by robust domestic business expansion, which bodes well for upcoming quarters. He emphasized, "This growth is led by strong domestic business growth, which augurs well for coming quarters."
L&T's leadership expressed pride in this milestone. S.N. Subrahmanyan, Chairman and Managing Director, highlighted in a media statement, "For the first time, the quarterly order inflow in our projects & manufacturing (P&M) portfolio has exceeded the ₹1 lakh crore (₹1 trillion) mark—a clear reflection of our capabilities and the inherent strength of our business model."
Financial Performance and Guidance
For the first nine months of FY26, L&T has garnered orders totaling ₹3.46 trillion, positioning the company comfortably to surpass its annual guidance of 10% growth in order inflow. R. Shankar Raman, Whole-time Director and Chief Financial Officer, shared this insight during a post-earnings media call, comparing it to the ₹3.57 trillion received in the entire previous fiscal year (FY25).
However, the quarter presented a mixed financial picture. Consolidated profit for Q3 declined by 4% year-on-year to ₹3,215 crore, primarily due to a one-time provision of ₹1,191 crore to comply with India's new labour codes. Excluding this provision, profit would have surged by a third to ₹4,406 crore. On the revenue front, consolidated figures rose by 10% to ₹71,450 crore, while EBITDA increased nearly a fifth to ₹7,417 crore, with margins expanding 71 basis points to 10.4%.
Despite these gains, revenue and EBITDA fell short of market estimates of ₹74,875 crore and ₹7,659 crore, respectively, based on a consensus of four brokerages. The consensus profit estimate stood at ₹4,346 crore. Nevertheless, L&T has maintained its revenue growth guidance of 15% for FY26, with nine-month revenue up 12% at ₹2.03 trillion.
Order Composition and Future Outlook
The record order flow was spearheaded by L&T's core infrastructure segment, which secured orders worth ₹61,876 crore, reflecting a more than 25% increase from the same quarter last year. This segment benefited from strong contributions from both domestic and international businesses, with a 55:45 split in favor of overseas operations. Notably, about three-fifths of domestic infrastructure orders originated from the private sector, encompassing on-shore oil and gas, power sector projects, and new factory constructions.
Looking ahead, Subrahmanyan expressed optimism, stating, "We remain optimistic that pro-growth momentum will be maintained in the ecosystem through sustained capital expenditure. We expect additional policy thrust to strengthen domestic manufacturing and fiscal incentives to support the deepening of India's digital and AI ecosystem."
Anwani pointed out that L&T has moderated its water infrastructure business due to unfavorable economics, resulting in only a 5% growth in infrastructure revenue. Despite this, the company's guidance remains intact. The prospect pipeline—open tenders under consideration—stood at ₹5.96 trillion at quarter-end, though it was impacted by Kuwait's cancellation of $10 billion oil and gas tenders, where L&T was a leading bidder, due to budget constraints.
Stock Performance and Market Context
On the trading front, L&T's stock edged up marginally by 0.1% to close at ₹3,793.65 on the BSE following the earnings announcement, which was released post-trading hours. However, since the start of 2026, the scrip has declined over 8%, underperforming the benchmark Sensex, which dipped just over 3%. This performance underscores the complex dynamics between order book strength and market sentiment in the current economic landscape.
