LT

’s Q3 Boosted by Private Infra Capex, Profit Hit by Labour Code

Larsen & Toubro Ltd (

) reported its highest-ever quarterly order booking in Q3FY26, with total orders reaching ₹1.36 trillion, up 17% YoY, driven by a rebound in domestic private sector capex. However, consolidated profit fell 4% YoY to ₹3,215 crore, impacted by a ₹1,791 crore one-time provision related to India’s new labour codes. Excluding this, profit rose 33% YoY to ₹4,406 crore, reflecting strong operational momentum. Order Book and Segment Highlights - Total order inflow: ₹1.36 trillion, highest ever for a single quarter. - Infrastructure segment contributed ₹61,876 crore, with 60% from private sector. - Order momentum reflects revival in domestic manufacturing and infra investments. Revenue and Profit Performance - Revenue: ₹71,450 crore, up 10% YoY, supported by execution across segments. - EBITDA: ₹7,417 crore, up ~20% YoY, with margin expansion of 71 bps to 10.4%. - Reported net profit: ₹3,215 crore, down 4% YoY due to labour code provision. - Adjusted net profit (ex-provision): ₹4,406 crore, up 33% YoY. Labour Code Impact and Cost Management - One-time provision of ₹1,791 crore to comply with new labour regulations. - Management expects cost normalization in coming quarters. - Focus remains on execution efficiency and margin protection. Strategic Commentary and Outlook - CEO S.N. Subrahmanyan expressed optimism on sustained capex and policy support. - L&T continues to benefit from fiscal incentives and infra push, especially in private sector. - Integration of acquired assets and digital initiatives expected to enhance margins over FY27–28. Valuation and Market Reaction - Stock closed marginally lower at ₹3,793.65, despite strong operational performance. - Analysts remain positive on order visibility, execution strength, and margin recovery, though near-term costs are a watchpoint.