Engineering and construction giant Larsen & Toubro (L&T) disclosed a 4% decrease in its consolidated net profit to Rs 3,215 crore for the quarter ending December 31, 2025. This decline was primarily attributed to a one-time exceptional expense related to new labor laws. The company made a provision of Rs 1,191 crore for employee benefits due to the implementation of these new labor codes, impacting its reported profit for the quarter.
Excluding this one-time provision, L&T’s performance showed significant strength. The company achieved a recurring profit after tax of Rs 4,406 crore in the December quarter, marking a notable year-on-year growth of 31%. Revenue for the quarter increased by 10% to Rs 71,450 crore, supported by consistent execution across its Projects and Manufacturing divisions.
L&T’s operational performance also saw an improvement, with EBITDA climbing 19% year-on-year to Rs 7,417 crore in Q3 FY26. The company’s order book exhibited strong momentum, reaching Rs 7.33 lakh crore by December 31, 2025, showcasing a robust 30% growth compared to the previous year. International orders constituted 49% of the total order book.
Chairman and Managing Director S N Subrahmanyan hailed the quarter as a significant period for L&T. The company achieved its highest-ever quarterly order inflow, surpassing the Rs 1 lakh crore mark in the Projects and Manufacturing portfolio for the first time. Consequently, L&T’s total order book surpassed Rs 7 lakh crore.
In terms of segments, the Infrastructure Projects business recorded order inflows of Rs 61,876 crore during the quarter, marking a 26% year-on-year increase. International orders made up 55% of this inflow, driven by substantial contracts in power transmission, distribution, and renewable energy. The Energy Projects segment secured new orders valued at Rs 46,049 crore, a 19% rise from the previous year. Notably, international markets contributed 43% of the segment’s total order inflow.
