L&T Q3FY26 Results
The ongoing Q3 earnings season is expected to continue driving the Indian stock market this week, though overall sentiment is likely to remain cautious. With earnings still unfolding, stock-specific movements should stay in focus. Market sentiment will be shaped by global developments, currency trends, and corporate results, while selective opportunities may emerge in segments supported by resilient domestic demand.
Let us see how L&T did in the December quarter. We look at the details for Q3FY26 for L&T. For more results in Q3, check this link - HERE
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L&T Q3FY26 Results
For the quarter ended December 31, 2025, the company reported consolidated revenues of Rs 71,450 crore, representing a year-on-year growth of 10%. This growth was driven by steady execution across businesses within the Projects and Manufacturing (P&M) portfolio. International revenues stood at Rs 38,775 crore, accounting for 54% of total revenues.
The company reported a recurring Profit After Tax (PAT) of Rs 4,406 crore for the quarter ended December 31, 2025, reflecting a strong year-on-year growth of 31%. Total consolidated PAT for the quarter was Rs 3,215 crore, which includes a one-time provision of Rs 1,191 crore (net of tax and NCI) towards employee benefits arising from the implementation of new labour codes. This provision has been classified under exceptional items.
During the same quarter, Larsen & Toubro Ltd secured new orders worth Rs 135,581 crore, marking a year-on-year growth of 17%. Order inflows were well diversified across geographies and sectors, including Thermal Power, Hydrocarbons, Renewable Infrastructure, Transmission & Distribution, and Roads & Runways. International orders amounted to Rs 66,848 crore, contributing 49% of the total order inflow.
Segment-wise Performance Highlights
Infrastructure Projects Segment
The Infrastructure Projects segment recorded an order inflow of Rs 61,876 crore for the quarter ended December 31, 2025, registering a y-o-y growth of 26%. International orders accounted for 55% of the total order inflow for the quarter, aided by the receipt of high-value orders in the Power Transmission & Distribution and Renewables businesses.
As on December 31, 2025, the segment order book stood at Rs 424,937 crore, with international orders contributing 45% to the total.
For the quarter ended December 31, 2025, customer revenues stood at Rs 33,700 crore, reflecting a y-o-y growth of 5%.
Energy Projects Segment
The Energy Projects segment secured order inflows of Rs 46,049 crore for the quarter ended December 31, 2025, registering a y-o-y growth of 19%, with receipt of ultra mega orders in the Hydrocarbon, Offshore Wind, and CarbonLite Solutions businesses. International order inflows constituted 43% of the total order inflow during the quarter.
The segment order book stood at Rs 247,861 crore as on December 31, 2025, with the international order book representing 65% of the total.
Hi-Tech Manufacturing Segment
The segment reported order inflows of Rs 2,168 crore for the quarter ended December 31, 2025, reflecting a 74% decline compared to the corresponding quarter of the previous year, attributable to a high base effect in the Precision Engineering & Systems (PES) business. Export orders accounted for 35% of the total order inflow during the quarter.
As on December 31, 2025, the segment order book stood at Rs 37,865 crore, with export orders contributing 12% to the total.
IT & Technology Services (IT&TS) Segment
The segment reported customer revenues of Rs 13,526 crore for the quarter ended December 31, 2025, registering a y-o-y growth of 12%, largely in line with customer spends in the IT&TS sector. International billing accounted for 92% of the total customer revenues during the quarter.
The segment delivered an EBITDA margin of 19.7% for the quarter ended December 31, 2025, an improvement over 18.7% in the corresponding quarter of the previous year. The improvement in margin was largely due to operational efficiencies and forex tailwinds.
Financial Services Segment
The segment reported income from operations of Rs 4,477 crore for the quarter ended December 31, 2025, registering a y-o-y growth of 15%, primarily driven by focused and higher disbursements in the retail business.
The total loan book stood at Rs 114,285 crore as of December 31, 2025, reflecting a 20% growth compared to December 2024 at Rs 95,120 crore. The retail loan book constituted 98% of the total loan book as on December 31, 2025.
The segment recorded a Profit Before Tax (PBT) of Rs 1,021 crore for the quarter ended December 31, 2025, compared to Rs 824 crore in the corresponding quarter of the previous year. This improvement was primarily driven by higher disbursements.
Development Projects Segment
The segment reported customer revenues of Rs 1,160 crore for the quarter ended December 31, 2025, registering a y-o-y decline of 19%, largely due to lower Plant Load Factor (PLF) at the Nabha Thermal Power Plant.
The segment recorded an EBIT of Rs 159 crore for the quarter ended December 31, 2025, higher than the Rs 140 crore reported in the corresponding quarter of the previous year. The growth was primarily on account of increased fare revenues in the Hyderabad Metro.
Outlook
The Indian economy continues to exhibit resilience, characterized by steady growth and low inflation. Q2 GDP growth came in at 8.2%, driven by strength in the manufacturing and services sectors. With a reduction in the repo rate by the RBI to 5.25% and soft price pressures along with easing food costs, FY26 GDP growth is likely to be around 7.4%.
The Union Budget 2026–27 is expected to increase outlays for technology, defence, and urban revitalization. Continued policy stability and the expansion of flagship initiatives are expected to serve as key catalysts for economic growth. Furthermore, private sector capital expansion witnessed in 2025, supported by large-scale greenfield investments and favourable funding conditions, provides a solid foundation for sustained macroeconomic momentum.
The global economy enters 2026 with projected GDP growth of around 3%, indicating a modest expansion for the year. The GCC region, a major geography for the company’s Projects business, is poised for strong growth, underpinned by major investments in AI infrastructure, data centers, and large-scale urban projects in Saudi Arabia and the UAE.
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