LT

Delivers Steady FY26 Despite Cost Pressures

Engineering conglomerate

(L&T) reported FY26 revenues of ₹2.86 trillion (+12% YoY), slightly below its guided growth of 15%. Despite input cost inflation and geopolitical tensions in West Asia, the company maintained resilience, with order inflows up 22% YoY to ₹4.36 trillion and a consolidated order book of ₹7.4 trillion. Margins were marginally below guidance, reflecting cost pressures, while profits grew steadily. Financial Highlights (FY26) Revenue: ₹2.86 trillion (+12% YoY; guidance 15%). EBITDA: ₹29,150 crore (+10% YoY). Core segment margin: 8.3% vs guidance of 8.5%. Profit (FY26): ₹16,084 crore (+7% YoY). Q4 profit: ₹5,325 crore (–3% YoY). New orders (Q4): ₹89,772 crore, flat YoY. Full‑year new orders: ₹4.36 trillion (+22% YoY). Order book: ₹7.4 trillion. Operational Context West Asia war impact: minimal on revenues and orders. Key markets: Saudi Arabia, UAE, Kuwait, Qatar. Order inflows: strong in infrastructure, hydrocarbon, and power segments. Margins: pressured by input cost inflation, though largely in line with guidance. Analyst Commentary Performance reflects steady execution despite geopolitical headwinds. Margin miss (8.3% vs 8.5%) attributed to rising costs, but offset by strong order inflows. Q4 slowdown in orders seen as normalization after heavy booking in prior quarter. Conclusion L&T’s FY26 results highlight resilient growth and robust order inflows, even as margins faced cost pressures. With a record order book and minimal disruption from West Asia conflict, the company remains well‑positioned for FY27. The focus will be on sustaining execution efficiency and protecting margins amid volatile input costs.