Construction · NSE: LT · BSE: 500510
L&T: how the business works
Larsen & Toubro builds infrastructure and energy projects in India and abroad, and owns IT and lending businesses; FY26 revenue was ₹285,874 crore, a quarter of it from Saudi Arabia.
Larsen & Toubro Limited · Mumbai, Maharashtra · Founded 1938
Last updated · Reviewed by Cityfort Research on
- Revenue, FY26
- ₹285,874 cr
- Profit to shareholders, FY26
- ₹16,084 cr
- Order book (signed work not yet done), 31 Mar 2026
- ₹740,327 cr
- Founded
- 1938
- Largest shareholder: L&T Employees Trust, Sep 2026 (no promoter)
- 14.56%
01 · The business in one line
What does L&T do?
Clients pay L&T to build projects and buy its IT and lending services; in FY26 running costs took ₹88 of every ₹100 that came in, and ₹5.5 was profit for shareholders.
- Infrastructure projects were 46.8% of L&T's FY26 revenue, but IT and technology services earned the largest share of segment profit: 30.3%.
- In FY26, 53.8% of L&T's revenue came from outside India. Saudi Arabia alone was 25.4%.
02 · What it sells
What does L&T sell?
Infrastructure projects
Projects built for clients in the Infrastructure Projects segment, 46.8% of FY26 revenue. From FY27 it is called Infrastructure & Utilities and includes water and effluent treatment.
Energy projects
Oil-and-gas (hydrocarbon) projects on land and offshore, and other energy projects: 19.2% of FY26 revenue. From FY27 L&T reports conventional energy and green energy (solar and wind) separately.
IT and technology services
Services sold through LTM Ltd (formerly LTIMindtree) and L&T Technology Services, both listed and majority-owned by L&T: 18.7% of FY26 revenue. From FY27 the segment also holds digital platforms, data centres and semiconductors.
Loans through L&T Finance
L&T Finance lends mostly to individuals: retail loans were 98% of its ₹129,634 crore loan book in Jun 2026. Financial services were 6.0% of L&T's FY26 revenue.
Manufactured equipment
The Hi-Tech Manufacturing segment, 4.9% of FY26 revenue. From FY27 it is grouped with construction and mining machinery, rubber machinery, valves and electrolysers as Manufacturing & Products.
Property and owned projects
Property development, which L&T is moving into L&T Realty Properties Ltd, and owned assets such as the Hyderabad Metro, which L&T agreed to sell in Apr 2026.
What it does
- Does: Designs and builds projects for clients under contract (EPC).
- Does: Earns more than half its revenue outside India: 53.8% in FY26.
- Does: Owns majority stakes in three listed companies: LTM, L&T Technology Services and L&T Finance.
- Does: Lends money, mostly to individuals, through L&T Finance.
What it does not do
- Does not: Has no promoter: no family or parent company controls it, and all shares are held by the public.
- Does not: Is not government-owned: central and state governments held 0.26% of its shares in Sep 2026.
- Does not: Does not plan to keep the Hyderabad Metro: it agreed in Apr 2026 to sell it (completion now expected by 31 Dec 2026), and it sold Nabha Power in Jun 2026.
- Does not: Does not earn most of its segment profit from construction alone: IT and financial services earned 44.4% of it in FY26.
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Q1 FY27 outcome of board meeting with results press release (Annexures 1-2); Press release: L&T embarks on consolidation of its realty business (scheme with L&T Realty Properties Ltd) and 1 more
03 · Who pays it
Who pays L&T?
Infrastructure clients
47%
of revenue
Pay L&T to build projects in its Infrastructure Projects segment. Share is of FY26 revenue from outside customers.
Energy companies
19%
of revenue
Pay L&T to build oil-and-gas and other energy projects. One customer group, mainly in this segment, gave L&T 10% or more of FY26 revenue.
Businesses buying IT and engineering services
19%
of revenue
Pay LTM and L&T Technology Services for IT and technology services.
Borrowers of L&T Finance
6%
of revenue
Pay interest and fees on loans; retail loans were 98% of the loan book in Jun 2026.
Buyers of manufactured equipment
5%
of revenue
Buy equipment from the Hi-Tech Manufacturing segment.
Others
4%
of revenue
Other businesses (2.5%), which included property, and Development Projects (1.8%) such as the Hyderabad Metro and Nabha Power, both since sold or being sold.
- Infrastructure clients47%
- Energy companies19%
- Businesses buying IT and engineering services19%
- Borrowers of L&T Finance6%
- Buyers of manufactured equipment5%
- Others4%
How spread out the customers are
One customer group gave L&T 10% or more of FY26 revenue, mainly in Energy Projects. L&T does not name it or give the amount. By country, Saudi Arabia was 25.4% of FY26 revenue.
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Q1 FY27 outcome of board meeting with results press release (Annexures 1-2); Reg. 30 disclosure: SPA to divest 100% of L&T Metro Rail (Hyderabad) Ltd to HMRL and 1 more
04 · How the money flows · FY26
How does money flow through L&T?
Money in
- Revenue from operations₹285,874 cr
- Other income₹5,761 cr
The company
L&T
₹291,635 cr came in
Money out
- Running costs, incl. L&T Finance's interest₹256,723 cr
- Depreciation₹4,365 cr
- Interest (rest of the group)₹2,849 cr
- One-time labour-code charge₹1,722 cr
- Income tax₹6,816 cr
- Minority shareholders' share and losses of part-owned companies₹3,075 cr
- Net profit for L&T shareholders₹16,084 cr
- In FY26 L&T's businesses brought in ₹285,874 crore of revenue, plus ₹5,761 crore of other income.
- Running costs took ₹256,723 crore. They include ₹6,995 crore of interest paid by L&T Finance, the group's lender.
- Depreciation took ₹4,365 crore and the rest of the group's interest ₹2,849 crore. A one-time labour-code charge took ₹1,722 crore.
- Income tax took ₹6,816 crore. Minority shareholders of subsidiaries such as LTM and L&T Finance had a ₹2,870 crore share, and part-owned companies lost ₹206 crore.
- What was left for L&T's shareholders was ₹16,084 crore of profit.
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Consolidated results Q4 FY26 and FY26 (XBRL, integrated filing)
05 · Where the money goes · FY26
Where does ₹100 of L&T's money go?
L&T · FY26
Receipt for every ₹100
| Running costs, incl. L&T Finance's interest | ₹88.0 |
|---|---|
| Depreciation | ₹1.5 |
| Interest (rest of the group) | ₹1.0 |
| One-time labour-code charge | ₹0.6 |
| Income tax | ₹2.3 |
| Minority shareholders and part-owned companies | ₹1.1 |
| Kept as profit for L&T shareholders | ₹5.5 |
| Total | ₹100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly ₹100 because of rounding.
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Consolidated results Q4 FY26 and FY26 (XBRL, integrated filing)
06 · What it needs to run
What does L&T need to run?
A large workforce on project sites
L&T itself, without its listed subsidiaries, had 57,377 employees and 380,065 workers in FY26. Of the workers, 378,039 were not permanent.
A steady flow of new orders
L&T won ₹435,590 crore of new orders in FY26. Management listed ₹17.8 lakh crore of project prospects it could bid for in FY27.
Working capital
Projects tie up cash until customers pay. Money owed by customers was ₹60,461 crore on 31 Mar 2026, about 77 days of revenue.
Borrowing for the lending business
About ₹109,800 crore of L&T's borrowings on 31 Mar 2026 funded L&T Finance, which lends that money on to its customers.
Top credit ratings
CRISIL rates L&T's bonds, bank loans and fixed deposits AAA/Stable, and its commercial paper A1+ (3 Sep 2026).
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Q4 FY26 outcome of board meeting (dividend, board/KMP changes) with results press release; Analyst presentation Q4 FY26 (March 2026), incl. Lakshya 26 review and Lakshya 31 targets and 3 more
07 · Why it makes money
Why does L&T make money?
L&T wins long contracts and keeps a thin margin on building them, so how much cash the work ties up matters.
In FY26 Infrastructure Projects kept ₹5.7 of every ₹100 of segment revenue as segment profit, before interest and tax; IT services kept ₹16.0. L&T says the cash tied up in day-to-day work fell from 19.7% of revenue in FY22 to 4.1% in FY26.
Net working capital as % of revenue (L&T's measure, excl. L&T Finance)
19.7%4.1%
FY22 to FY26
- Clients put projects out to bid.
- L&T wins orders: ₹435,590 crore in FY26.
- Orders join the order book, ₹740,327 crore on 31 Mar 2026.
- L&T carries out the work over the next few years, turning orders into revenue.
- Construction keeps about ₹6 of every ₹100 of segment revenue; IT and finance keep more.
- Cash collected from customers pays for dividends and the next projects.
↺ Step 6 feeds back into step 1.
Source: Analyst presentation Q4 FY26 (March 2026), incl. Lakshya 26 review and Lakshya 31 targets
08 · Business segments · FY26
Which businesses make up L&T?
Infrastructure Projects
47%Building projects for clients. Revenue here is from outside customers; profit is segment profit before interest and tax.
Revenue ₹133,910 cr · Operating profit ₹7,760 cr
Energy Projects
19%Oil-and-gas and other energy projects.
Revenue ₹54,865 cr · Operating profit ₹3,374 cr
IT & Technology Services
19%LTM (formerly LTIMindtree) and L&T Technology Services.
Revenue ₹53,497 cr · Operating profit ₹8,634 cr
Financial Services
6%Lending through L&T Finance.
Revenue ₹17,283 cr · Operating profit ₹4,032 cr
Hi-Tech Manufacturing
5%Manufactured equipment.
Revenue ₹14,109 cr · Operating profit ₹2,105 cr
Others
3%Smaller businesses, including property.
Revenue ₹7,093 cr · Operating profit ₹2,086 cr
Development Projects
2%Owned assets such as the Hyderabad Metro and Nabha Power, both since sold or being sold.
Revenue ₹5,117 cr · Operating profit ₹539 cr
How the mix changed
- Infrastructure Projects
- Energy Projects
- IT & Technology Services
- Financial Services
- Hi-Tech Manufacturing
- Others
- Development Projects
Revenue by segment, FY22 to FY26.
₹ crore · Source: Integrated Annual Report FY23 (2022-23), incl. consolidated financial statements (zip on NSE); Integrated Annual Report FY24 (2023-24), incl. consolidated financial statements; Integrated Annual Report FY25 (2024-25), incl. consolidated financial statements and 1 more
See the numbers
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Reg. 30 disclosure: SPA to divest 100% of L&T Metro Rail (Hyderabad) Ltd to HMRL; Reg. 30 disclosure: divestment of Nabha Power Ltd to Torrent Power completed
09 · Where it sells · FY26
Where does L&T sell?
- India46%
- Saudi Arabia25%
- USA13%
- UAE4%
- Qatar3%
- Oman1%
- UK1%
- Other countries7%
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR
10 · Competitors and what protects it
Who does L&T compete with?
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Order book4 of 5
L&T's order book was ₹740,327 crore on 31 Mar 2026, about 2.6 times its FY26 revenue of ₹285,874 crore.
- Credit standing5 of 5
CRISIL (3 Sep 2026) and India Ratings (Sep 2026) rate L&T AAA/Stable. Moody's assigned Baa1 (Stable) on 6 Jul 2026, which L&T says is two notches above India's sovereign rating.
- Spread of businesses4 of 5
L&T reported seven segments in FY26, from construction to IT services and lending. The largest, Infrastructure Projects, was 46.8% of revenue.
- International reach4 of 5
International orders were ₹251,078 crore, 58% of L&T's FY26 order inflow. 53.8% of FY26 revenue came from outside India.
- Workforce3 of 5
L&T itself had 57,377 employees and 380,065 workers in FY26, most of the workers not permanent.
Weak spot
Thin margins on construction
Infrastructure Projects, 46.8% of FY26 revenue, kept ₹5.7 of every ₹100 of segment revenue as segment profit before interest and tax. Energy Projects kept ₹6.1.
Source: Q4 FY26 outcome of board meeting (dividend, board/KMP changes) with results press release; Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; CRISIL Ratings rationale: Larsen & Toubro Ltd, CRISIL AAA/Stable reaffirmed (3 Sep 2026) and 2 more
11 · Where growth could come from
Where could L&T's growth come from?
In the Q4 FY26 call on 5 May 2026, management guided FY27 order inflow growth of 10–12% and revenue growth of 10–12%, with a softer first half. It also guided net working capital of about 10% of revenue. Management reaffirmed this on 28 Jul 2026. L&T's Lakshya 2031 plan (FY26–FY31) targets order inflow and revenue growth of 10–12% and 12–15% a year, and a return on equity of 16–17%.
International orders
Working58% of FY26 order inflow
International orders were ₹251,078 crore of L&T's ₹435,590 crore FY26 order inflow. In Q1 FY27 they were 56% of inflow, and 52% of the order book.
Status: Working, on track against what the company said.
IT and technology services
WorkingRevenue +15%, Q1 FY27
The Technology, Platforms & Services segment earned ₹14,627 crore of revenue in Q1 FY27, up 15%, with an EBITDA margin of 19.2%.
Status: Working, on track against what the company said.
Green energy (solar and wind)
MixedOrders +58%, revenue −11%, Q1 FY27
Energy – Green won ₹33,042 crore of orders in Q1 FY27, but revenue fell to ₹5,607 crore. L&T blamed West Asia supply-chain disruption for solar. Its order book was ₹146,700 crore, 97% international.
Status: Mixed, partly on track.
Manufacturing & Products
MixedOrders +74%, Q1 FY27
Orders rose to ₹5,535 crore and revenue 9% to ₹4,486 crore in Q1 FY27. The EBITDA margin fell from 17.5% to 15.2%.
Status: Mixed, partly on track.
Data centres and AI cloud
New₹1,400 crore transfer to Vyoma.AI
In Aug 2026 L&T agreed to move its data centre and cloud business into Vyoma.AI Ltd, a wholly owned company. In Nov 2024 it agreed to buy up to 21% of E2E Networks, an AI cloud company, for about ₹1,407 crore.
Status: New, recently announced.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
Source: Transcript, Q4 FY26 earnings call (5 May 2026); Transcript, Q1 FY27 earnings call (28 Jul 2026); Analyst presentation Q4 FY26 (March 2026), incl. Lakshya 26 review and Lakshya 31 targets and 4 more
12 · The numbers · Consolidated · ₹ crore
How has L&T done?
Revenue
₹285,874 crFY26
L&T's revenue grew every year, from ₹156,521 crore in FY22 to ₹285,874 crore in FY26; growth was 11.8% in FY26 and 6.7% in Q1 FY27.
₹ crore · Source: Integrated Annual Report FY23 (2022-23), incl. consolidated financial statements (zip on NSE); Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Integrated Annual Report FY24 (2023-24), incl. consolidated financial statements and 14 more
See the numbers
Net profit
₹16,084 crFY26
Profit for shareholders rose from ₹8,669 crore in FY22 to ₹16,084 crore in FY26, after a ₹1,722 crore one-time labour-code charge booked mostly in Q3 FY26.
₹ crore · Source: Integrated Annual Report FY23 (2022-23), incl. consolidated financial statements (zip on NSE); Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Integrated Annual Report FY24 (2023-24), incl. consolidated financial statements and 1 more
See the numbers
Profit kept per ₹100 of revenue
₹5.6FY26
EBITDA, which here leaves out one-off items as in L&T's own reports, was ₹11.6 of every ₹100 of revenue in FY22 and ₹10.2 in FY26.
₹ of profit per ₹100 of revenue (net margin) · Source: Integrated Annual Report FY23 (2022-23), incl. consolidated financial statements (zip on NSE); Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Integrated Annual Report FY24 (2023-24), incl. consolidated financial statements and 1 more
See the numbers
Free cash flow
₹11,932 crFY26
Cash from operations is after L&T Finance's new lending, which used ₹25,233 crore in FY26; free cash flow was ₹11,932 crore in FY26 and ₹4,733 crore in FY25.
₹ crore · cash from operations minus spending on plants and equipment · Source: Integrated Annual Report FY23 (2022-23), incl. consolidated financial statements (zip on NSE); Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Integrated Annual Report FY24 (2023-24), incl. consolidated financial statements and 1 more
See the numbers
See all yearly numbers
EBITDA = profit before interest, tax and wear-and-tear of assets. Financial year runs April to March (March year end). Net profit is the share belonging to the company's owners.
13 · Financial strength · 31 Mar 2026
How much debt does L&T have?
- Total debt₹121,683 cr
- Cash and investments₹80,373 cr
- Net debt (debt minus cash)₹41,310 cr
- Net worth (shareholders' money)₹128,530 cr
- Debt to equity
- 0.95×
- ₹ of debt for every ₹1 of shareholders' money
- L&T's FY26 analyst presentation splits borrowings: about ₹109,800 crore belonged to financial services and about ₹11,900 crore to the rest of the group. A year earlier the rest of the group had about ₹21,900 crore, plus ₹15,600 crore in development projects.
- L&T Finance's loans to its customers were ₹117,821 crore on 31 Mar 2026.
- Cash and short-term investments = cash, other bank balances and current investments.
- The Hyderabad Metro and Nabha Power were being sold on 31 Mar 2026, so the metro's debt is no longer in borrowings. Their liabilities sit in 'liabilities held for sale' (₹20,966 crore in total).
- Net worth here is total equity, including ₹19,241 crore that belongs to minority shareholders of subsidiaries. Equity of L&T's own shareholders was ₹109,290 crore. Lease liabilities were a further ₹3,814 crore.
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Analyst presentation Q4 FY26 (March 2026), incl. Lakshya 26 review and Lakshya 31 targets
14 · Who owns it · Q2 FY27
Who owns L&T?
- Foreign institutions (FII)19.2%
- Indian institutions (DII)42.9%
- Public37.7%
- Central and state governments0.3%
No promoter
L&T reports no promoter group in Q2 FY27: no founder family or parent company is filed as controlling it, so there are no promoter shares to pledge.
How ownership changed
* Others = Central and state governments.
Source: Shareholding pattern, Sep 2026 (XBRL); Shareholding pattern, Jun 2026 (XBRL); Shareholding pattern, Mar 2026 (XBRL) and 9 more
15 · What it does with profit
What does L&T do with its profit?
Dividend per share
₹38.00FY26
Dividend paid for each share, by financial year.
₹ per share · Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Integrated Annual Report FY23 (2022-23), incl. consolidated financial statements (zip on NSE); Integrated Annual Report FY24 (2023-24), incl. consolidated financial statements and 1 more
See the numbers
No buybacks or fund raises in the period covered.
16 · Who runs it
Who runs L&T, and did they deliver?
S. N. Subrahmanyan
Chairman & Managing Director
Subramanian Sarma
Deputy Managing Director & President · since 2025
In this role from 2 Apr 2025.
P. Ramakrishnan
Chief Financial Officer · since 2026
CFO from 1 Jul 2026.
R. Shankar Raman
President & Whole-time Director (Finance)
CFO until 30 Jun 2026; re-appointed for two years from 1 Oct 2026.
Subramanian Narayan
Company Secretary
What they said, and what happened
2 delivered · 1 missed · 1 partly delivered · 2 too early to tell
Said on 29 Oct 2025
Grow FY26 order inflow by 10% (management guidance, restated in the Q2 FY26 call).
DeliveredWhat happened
FY26 order inflow rose 22%, to ₹435,590 crore.
Said on 28 Jan 2026
Grow FY26 revenue by 15%. In the Q3 call management said it was "reasonably confident" of this.
MissedWhat happened
FY26 revenue rose 12%. L&T cited slower execution in its water business, pending clearances and disruption in West Asia in March.
Said on 28 Jan 2026
Bring net working capital to about 10% of revenue by Mar 2026 (revised from 12%).
DeliveredWhat happened
Net working capital was 4.1% of revenue on 31 Mar 2026, by L&T's measure.
Said on 5 May 2026
Complete the sales of Nabha Power and the Hyderabad Metro in Q1 FY27, by 30 Jun 2026.
Partly deliveredWhat happened
The Nabha Power sale to Torrent Power completed on 25 Jun 2026. The Hyderabad Metro completion date moved to 30 Sep 2026, then to 31 Dec 2026.
Said on 5 May 2026
Grow FY27 order inflow by 10–12%.
Too early to tellWhat happened
Q1 FY27 order inflow rose 14%, to ₹108,014 crore. Management reaffirmed the guidance on 28 Jul 2026.
Said on 5 May 2026
Grow FY27 revenue by 10–12%, with a softer first half.
Too early to tellWhat happened
Q1 FY27 revenue rose 7%, to ₹67,942 crore. Management reaffirmed the guidance on 28 Jul 2026.
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Press release: Subramanian Sarma elevated as Deputy Managing Director & President (from 2 Apr 2025); Q4 FY26 outcome of board meeting (dividend, board/KMP changes) with results press release and 8 more
17 · Governance signals
What do L&T's governance filings show?
- Auditor
- M S K A & Associates LLP, since 2024
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- L&T's largest group companies are listed subsidiaries: on 31 Mar 2026 it owned 68.52% of LTM, 73.57% of L&T Technology Services and 65.99% of L&T Finance. Amounts of related-party transactions were not extracted for this page.
- Credit rating
- CRISIL AAA (long term), A1+ (short term) (Stable), 3 Sep 2026
A credit rating describes the company's ability to repay debt. It is not a rating of the share.
Flags to know about
auditor · 4 Jul 2024
Auditor appointed in 2024
Shareholders appointed M S K A & Associates as statutory auditor at the 79th AGM on 4 Jul 2024, for five years. The firm became an LLP on 13 Jan 2026, with no change in the engagement.
disclosure · 1 Apr 2026
New segments from FY27
From 1 Apr 2026 L&T reports eight new segments. The documents collected give FY26 comparisons only for Q1 FY26, so yearly segment history stays on the old basis.
disclosure · 31 Mar 2026
Largest customer not named
One customer group gave L&T 10% or more of FY26 revenue, mainly in Energy Projects. L&T does not name it or give the amount.
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Reg. 30 disclosure: statutory auditor M S K A & Associates converted to LLP; CRISIL Ratings rationale: Larsen & Toubro Ltd, CRISIL AAA/Stable reaffirmed (3 Sep 2026) and 2 more
18 · What the market paid · price as of 30 Jun 2026
What did the market pay for L&T on 30 Jun 2026?
Price as of 30 Jun 2026 (shown for education; prices change daily).
Price as of 30 Jun 2026 (data at least 3 months old, shown for education). The NSE closing price was ₹4,143.40. Market value = that price × 137.57 crore shares. P/E (price ÷ earnings per share) of 35.4 means the price was 35.4 times L&T's FY26 basic earnings per share of ₹116.93. P/B of 5.22 compares market value with shareholders' equity of ₹109,290 crore on 31 Mar 2026.
- Share price
- ₹4,143.40
- Market value (market cap)
- ₹570,020 cr
- P/E
- 35.4×
- P/B
- 5.2×
Source: NSE full bhavcopy (security-wise price data), 30 Jun 2026; Shareholding pattern, Jun 2026 (XBRL); Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR
19 · What could go wrong
What could go wrong for L&T?
- Concentration
Dependence on the Middle East
Saudi Arabia was 25.4% of L&T's FY26 revenue. The Middle East was 71% of its ₹4.07 lakh crore international order book in Jun 2026. L&T said the West Asia conflict disrupted work in Mar 2026 and Q1 FY27; management said there were no cancellations.
Watch Share of revenue from Saudi Arabia, and management's comments on West Asia in each results call.
- Execution
Thin, shifting project margins
Energy Projects' EBITDA margin fell from 8.5% in FY25 to 6.8% in FY26. In Q1 FY27 the Infrastructure & Utilities margin fell to 5.1%, partly from higher provisions for expected collection delays.
Watch Segment EBITDA margins in each quarterly results release.
- Execution
Revenue growth below guidance
FY26 revenue rose 12% against management's 15% guidance, and Q1 FY27 revenue rose 7%. L&T cited water-business execution, pending clearances and West Asia disruption.
Watch FY27 revenue growth against the 10–12% guidance.
- Cash and liquidity
Cash tied up in projects
CRISIL's 3 Sep 2026 report notes L&T's large working capital needs: standalone gross current assets of 276 days in Mar 2026, against 259 days a year earlier. L&T's own net working capital measure was 4.9% of revenue in Jun 2026.
Watch Net working capital as % of revenue (management guided about 10% for FY27).
- Debt
A growing lending business
L&T Finance's loan book was ₹129,634 crore in Jun 2026, up from ₹121,728 crore in Mar 2026. It carried about ₹109,800 crore of the group's ₹121,683 crore borrowings on 31 Mar 2026.
Watch L&T Finance's loan book and the financial services share of group borrowings.
- Execution
Hyderabad Metro sale not yet complete
L&T agreed on 29 Apr 2026 to sell the Hyderabad Metro company for ₹1,461.47 crore. Completion has moved twice, now to 31 Dec 2026. CRISIL lists capital in low-return development projects as a weakness.
Watch Completion of the sale by 31 Dec 2026.
- Concentration
One large customer group
One customer group gave L&T 10% or more of FY26 revenue, mainly in Energy Projects. L&T does not name it or say how much.
Watch The customer-concentration note in the FY27 annual report.
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; Transcript, Q1 FY27 earnings call (28 Jul 2026); Transcript, Q4 FY26 earnings call (5 May 2026) and 8 more
20 · How it got here
How did L&T get here?
1938
Milestone
Founded
H. H. Larsen and S. K. Toubro set up the business in 1938. It was incorporated in 1946 and became a public limited company in 1950.
2024
Milestone
Stake in E2E Networks
On 5 Nov 2024 L&T agreed to buy up to 21% of E2E Networks, an AI cloud company, for about ₹1,407 crore, without taking control.
2025
Milestone
One-time labour-code charge
India's new labour codes took effect on 21 Nov 2025. L&T booked a ₹1,722 crore pre-tax provision for past employee service in FY26.
2025
Business-model change
Property business to be separated
On 8 Dec 2025 the board approved moving L&T's property business into L&T Realty Properties Ltd, a wholly owned company. The NCLT admitted the petition on 18 Aug 2026.
2026
Business-model change
New eight-segment structure
From 1 Apr 2026, under its Lakshya 2031 plan, L&T reports eight segments, with green energy, realty and technology platforms shown separately.
2026
Business-model change
Hyderabad Metro sale agreed
On 29 Apr 2026 L&T agreed to sell L&T Metro Rail (Hyderabad) to HMRL, owned by the Government of Telangana, for ₹1,461.47 crore.
2026
Business-model change
Nabha Power sold
The sale of the Nabha Power plant company to Torrent Power completed on 25 Jun 2026, for ₹3,632.35 crore.
2026
Business-model change
Data centres moved into Vyoma.AI
On 11 Aug 2026 L&T said it would move its data centre and cloud business into Vyoma.AI Ltd, a wholly owned company, for ₹1,400 crore paid in Vyoma shares.
Source: CRISIL Ratings rationale: Larsen & Toubro Ltd, CRISIL AAA/Stable reaffirmed (3 Sep 2026); Reg. 30 disclosure: acquisition of up to 21% stake in E2E Networks Ltd; Consolidated results Q4 FY26 and FY26 (XBRL, integrated filing) and 7 more
21 · Both sides
What do supporters and critics point to?
What supporters point to
- L&T's order book was ₹740,327 crore on 31 Mar 2026, about 2.6 times FY26 revenue, and ₹778,954 crore on 30 Jun 2026.
- FY26 order inflow rose 22% to ₹435,590 crore, against management's 10% guidance.
- L&T reports cash from operations, excluding financial services, of ₹35,490 crore in FY26, up from ₹18,960 crore in FY25.
- CRISIL reaffirmed L&T's AAA/Stable rating on 3 Sep 2026, and Moody's assigned Baa1 (Stable) on 6 Jul 2026.
- Revenue grew every year from FY22 to FY26, from ₹156,521 crore to ₹285,874 crore.
What critics point to
- FY26 revenue rose 12% against 15% guidance, and Q1 FY27 revenue rose 6.7%.
- Saudi Arabia was 25.4% of FY26 revenue, and the Middle East was 71% of the international order book in Jun 2026.
- EBITDA per ₹100 of revenue, excluding one-offs, fell from ₹11.6 in FY22 to ₹10.2 in FY26.
- About ₹109,800 crore of the group's ₹121,683 crore borrowings funded L&T Finance. Reported free cash flow, which is after L&T Finance's new lending, was ₹4,733 crore in FY25.
- CRISIL's Sep 2026 report notes large working capital needs and capital tied up in development projects such as the Hyderabad Metro.
22 · What to watch next
What should you watch next at L&T?
Next event
Q2 FY27 results (board meeting)
27 Oct 2026
Date confirmed by the company
Revenue against FY27 guidance
Management guided 10–12% revenue growth for FY27 on 5 May 2026, with a softer first half. Q1 FY27 revenue rose 6.7%.
Work in the Middle East
Saudi Arabia was 25.4% of FY26 revenue. L&T said the West Asia conflict disrupted solar supply chains in Q1 FY27.
Hyderabad Metro sale
The ₹1,461.47 crore sale to HMRL is now expected to complete by 31 Dec 2026, after two date changes.
23 · Key facts
Key facts about L&T
- What does L&T do?
- Larsen & Toubro (L&T), based in Mumbai, designs and builds infrastructure and energy projects in India and abroad, and makes equipment. L&T also controls listed IT services companies and the lender L&T Finance. L&T's FY26 consolidated revenue was ₹285,874 crore.
- How does L&T make money?
- L&T earns most of its revenue from building projects under contract. In FY26 Infrastructure Projects were 46.8% of L&T's revenue and Energy Projects 19.2%. L&T's IT and technology services were 18.7% of FY26 revenue but earned 30.3% of segment profit.
- Who are L&T's customers?
- In FY26, 46.2% of L&T's revenue came from India, 25.4% from Saudi Arabia and 13.0% from the USA. One customer group, mainly in Energy Projects, gave L&T 10% or more of FY26 revenue; L&T does not name it. Retail loans were 98% of L&T Finance's loan book in Jun 2026.
- How big is L&T?
- L&T's FY26 consolidated revenue was ₹285,874 crore and its profit for shareholders was ₹16,084 crore. On 31 Mar 2026 L&T had an order book (signed work not yet done) of ₹740,327 crore.
- Who owns L&T?
- L&T has no promoter group; all its shares are held by the public. On 30 Sep 2026 Indian institutions held 42.86% of L&T, foreign investors 19.21%, governments 0.26%, and individuals and others 37.67%. L&T's largest holders were the L&T Employees Trust (14.56%) and LIC (13.18%).
- Why did L&T's FY26 profit grow less than its revenue?
- L&T's FY26 revenue rose 11.8%, while its profit for shareholders rose 7.0% to ₹16,084 crore. FY26 profit included a one-time ₹1,722 crore pre-tax charge for India's new labour codes, ₹1,155 crore after tax and minority share. Excluding one-off items, L&T reported FY26 profit of ₹17,238 crore, up 18%.
- Does L&T have debt?
- On 31 Mar 2026 L&T's consolidated borrowings were ₹121,683 crore, and about ₹109,800 crore of that funded the lender L&T Finance. L&T's cash and short-term investments were ₹80,373 crore. CRISIL rated L&T AAA/Stable on 3 Sep 2026.
- Which listed companies does L&T own?
- On 31 Mar 2026 L&T owned 68.52% of LTM Ltd (formerly LTIMindtree), 73.57% of L&T Technology Services and 65.99% of L&T Finance. All three are listed companies.
- What dividend did L&T pay for FY26?
- L&T's dividend for FY26 was ₹38 per share, against ₹34 for FY25. L&T paid ₹4,676 crore of dividends in cash during FY26.
Source: Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR; CRISIL Ratings rationale: Larsen & Toubro Ltd, CRISIL AAA/Stable reaffirmed (3 Sep 2026); Q1 FY27 outcome of board meeting with results press release (Annexures 1-2) and 4 more
Terms on this page
- Capital expenditure (capex)
- Credit rating
- Dividend payout ratio
- EBITDA
- FII and DII holding
- Free cash flow
- Net debt
- Net profit
- Operating margin
- Promoter holding
Each explains the term in plain English, with the same number from other companies on Cityfort.
24 · Sources and changes
Where every number on this page comes from
Sources (49 documents)
- S1Integrated Annual Report FY26 (2025-26), incl. consolidated financial statements and BRSR · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 14 May 2026
- S2Integrated Annual Report FY25 (2024-25), incl. consolidated financial statements · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 26 May 2025
- S3Integrated Annual Report FY24 (2023-24), incl. consolidated financial statements · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 11 Jun 2024
- S4Integrated Annual Report FY23 (2022-23), incl. consolidated financial statements (zip on NSE) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 17 Jul 2023
- S5Consolidated results Q1 FY27 (XBRL, integrated filing) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 28 Jul 2026
- S6Consolidated results Q4 FY26 and FY26 (XBRL, integrated filing) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 5 May 2026
- S7Consolidated results Q3 FY26 (XBRL, integrated filing) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 28 Jan 2026
- S8Consolidated results Q2 FY26 (XBRL, integrated filing) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 29 Oct 2025
- S9Consolidated results Q1 FY26 (XBRL, integrated filing) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 29 Jul 2025
- S10Consolidated results Q4 FY25 (XBRL, integrated filing; several P&L facts missing in the file) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 9 May 2025
- S11Consolidated results Q3 FY25 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 31 Jan 2025
- S12Consolidated results Q2 FY25 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 31 Oct 2024
- S13Consolidated results Q1 FY25 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 25 Jul 2024
- S14Consolidated results Q4 FY24 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 9 May 2024
- S15Consolidated results Q3 FY24 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 31 Jan 2024
- S16Q1 FY27 outcome of board meeting with results press release (Annexures 1-2) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 28 Jul 2026
- S17Q4 FY26 outcome of board meeting (dividend, board/KMP changes) with results press release · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 5 May 2026
- S18Analyst presentation Q1 FY27 (June 2026) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 28 Jul 2026
- S19Analyst presentation Q4 FY26 (March 2026), incl. Lakshya 26 review and Lakshya 31 targets · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 5 May 2026
- S20Transcript, Q1 FY27 earnings call (28 Jul 2026) · Larsen & Toubro (investors.larsentoubro.com) · Tier 1: company or exchange filing · 3 Aug 2026
- S21Transcript, Q4 FY26 earnings call (5 May 2026) · Larsen & Toubro (investors.larsentoubro.com) · Tier 1: company or exchange filing · 11 May 2026
- S22Transcript, Q3 FY26 earnings call (28 Jan 2026) · Larsen & Toubro (investors.larsentoubro.com) · Tier 1: company or exchange filing · 3 Feb 2026
- S23Transcript, Q2 FY26 earnings call (29 Oct 2025) · Larsen & Toubro (investors.larsentoubro.com) · Tier 1: company or exchange filing · 4 Nov 2025
- S24Shareholding pattern, Sep 2026 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 17 Oct 2026
- S25Shareholding pattern, Jun 2026 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 16 Jul 2026
- S26Shareholding pattern, Mar 2026 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 16 Apr 2026
- S27Shareholding pattern, Dec 2025 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 21 Jan 2026
- S28Shareholding pattern, Sep 2025 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 18 Oct 2025
- S29Shareholding pattern, Jun 2025 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 21 Jul 2025
- S30Shareholding pattern, Mar 2025 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 17 Apr 2025
- S31Shareholding pattern, Dec 2024 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 14 Jan 2025
- S32Shareholding pattern, Sep 2024 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 14 Oct 2024
- S33Shareholding pattern, Jun 2024 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 18 Jul 2024
- S34Shareholding pattern, Mar 2024 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 12 Apr 2024
- S35Shareholding pattern, Dec 2023 (XBRL) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 10 Jan 2024
- S36CRISIL Ratings rationale: Larsen & Toubro Ltd, CRISIL AAA/Stable reaffirmed (3 Sep 2026) · CRISIL Ratings Ltd · Tier 2: rating agency or regulator · 3 Sep 2026
- S37Reg. 30 disclosure: CRISIL ratings (AAA/Stable, A1+) reaffirmed · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 4 Sep 2026
- S38Reg. 30 disclosure: India Ratings affirms IND AAA/Stable and IND A1+ · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 1 Sep 2026
- S39Press release: Moody's assigns Baa1 (Stable) issuer rating (6 Jul 2026) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 7 Jul 2026
- S40Reg. 30 disclosure: SPA to divest 100% of L&T Metro Rail (Hyderabad) Ltd to HMRL · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 29 Apr 2026
- S41Reg. 30 update: Hyderabad Metro divestment completion date revised to 31 Dec 2026 · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 30 Sep 2026
- S42Reg. 30 disclosure: divestment of Nabha Power Ltd to Torrent Power completed · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 25 Jun 2026
- S43Press release: L&T embarks on consolidation of its realty business (scheme with L&T Realty Properties Ltd) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 8 Dec 2025
- S44Reg. 30 disclosure: NCLT Mumbai admits petition for L&T / L&T Realty Properties scheme · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 1 Sep 2026
- S45Reg. 30 disclosure: statutory auditor M S K A & Associates converted to LLP · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 15 Jan 2026
- S46Reg. 30 disclosure: transfer of data centre and cloud business to Vyoma.AI Ltd (wholly owned) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 11 Aug 2026
- S51Reg. 30 disclosure: acquisition of up to 21% stake in E2E Networks Ltd · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 5 Nov 2024
- S52Press release: Subramanian Sarma elevated as Deputy Managing Director & President (from 2 Apr 2025) · NSE (company filing, nsearchives.nseindia.com) · Tier 1: company or exchange filing · 21 Mar 2025
- S54NSE full bhavcopy (security-wise price data), 30 Jun 2026 · NSE (nsearchives.nseindia.com) · Tier 1: company or exchange filing · 30 Jun 2026
Changes to this page (v1 · 26 Oct 2026)
- v1 · 26 Oct 2026First version. (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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