L&T rises 4% on record orders and 33% profit jump

(LT) rose 4.28% to ₹3,821.90 by 10:54 AM on October 28, after reporting a 33% year-on-year jump in Q2 FY27 consolidated net profit to ₹5,202 crore. The results came out on October 27, when the stock closed 0.4% lower at ₹3,665.10. Revenue grew 16% to ₹78,750 crore. Order inflow hit a record ₹1,47,665 crore, up 28%, and first-half inflows rose 22% to ₹2,55,678 crore. The order book reached an all-time high of ₹8.53 lakh crore, up 28%. International orders made up 63% of the quarter’s inflow and 54% of the total order book. Profit also beat estimates. The order engine is the standout. At about 2.7 times annual revenue, the order book gives multi-year visibility. Inflows were broad-based across hydrocarbon offshore, offshore wind, minerals and metals, and buildings, and cash conversion improved during the quarter. The weak spot is operating margins. EBITDA rose just 1% to ₹6,845 crore, even though revenue grew 16%. That pushed the EBITDA margin down to about 8.7% from 10.0% a year ago. So net profit growth of 33% came largely from items below the operating line, not from core project profitability. The company flagged project cost pressures, early-stage energy jobs with low margins, solar order deferrals and fewer realty handovers. With most new orders coming from overseas, geopolitical risk also matters more. Investors should watch the EBITDA margin trend, execution speed on the ₹8.5 lakh crore order book, margins on international projects, and working capital. The key question is whether L&T can turn record orders into better margins, not just more revenue. Disclosure: I do not hold any position in Larsen & Toubro Limited. This post is for informational purposes only and is not investment advice.