Larsen & Toubro is India's largest engineering and construction conglomerate, spanning infrastructure, energy, manufacturing, technology services and finance, and its quarter will be read against a West Asia conflict that disrupted execution through much of the July-September window. The print will speak to two things above all: whether the PP&M margin closes the 0.8 percentage-point gap between Q1's 7.0% and the guided ~7.8% for FY27, and whether the Middle East award pickup management guided for from Q2 FY27 actually landed in the order book.
| Results date | October 27, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 67,942 Cr (+7% YoY) |
| Previous quarter PAT | Rs. 4,123 Cr (+14% YoY) |
| Previous quarter EBITDA margin | 9.0% (group, before other income) vs 9.9% |
| Market cap | Rs. 501,405.49 Cr |
| CMP | Rs. 3,638.3 |
Per the board-meeting intimation dated October 13, 2026, the Board will meet on October 27, 2026 to consider the unaudited consolidated and standalone results for the quarter and half-year ended September 30, 2026 (Reg 29(1)(a) and 50(1), SEBI LODR).
A Q2/H1 FY27 earnings conference call is scheduled for October 27, 2026 at 7:30 p.m. (virtual).
The quarter tests whether L&T can hold its FY27 guidance of 10-12% order inflow and revenue growth through a West Asia conflict that escalated through the July-September window, with Brent above $100 on September 9 and Hormuz transits at their lowest since May in early September before de-escalation signals appeared late in the month. On the demand side, domestic awarding is inflecting — NHAI awards rose 621% YoY in August 2026 and 62.9% for April-September — and five Ultra-Mega wins (TenneT, ADNOC Offshore, Middle East offshore EPCIC, gas compression, Tashkent LNTP) were announced between July 28 and October 19, 2026, consistent with management's guidance that Middle East awards would pick up from Q2 FY27. On execution, highway construction fell 18.6% YoY in H1 FY27 and Energy-Green revenue fell 11% YoY in Q1 on supply-chain disruptions, so the H1-subdued/H2-ramp framing management set out remains the base case. The margin bridge is the other swing factor: PP&M margin printed 7.0% in Q1 against the ~7.8% FY27 target, USD/INR was rangebound near 94-95.5 so the Q1 forex drag should be broadly neutral, and the Q1 ECL bump from Water & Effluent Treatment and legacy infra collections is something the CFO said should not recur in the remaining quarters. The call is also expected to quantify the Lakshya plan Year-1 capex, which management promised to finalize in Q2 FY27.
Performance vs guidance tracking: Management's FY27 guidance from the Q1 call (July 28, 2026) against where things stood entering Q2:
Order book and Middle East award pickup
Margin bridge and other income sustainability
Portfolio exits and capex quantification
Other income rose 75% YoY to Rs. 23.7 bn in Q1 FY27, driven by group surpluses earning yields estimated 1.5-2.5% above market norms. The CFO cautioned this level 'might not be sustainable in the long term' given planned investments in green energy and data centers, calling it a reasonable assumption only for the next one to two quarters.
The 9.0% group margin in Q1 FY27 is reported before other income, while segment-level margins include segment-specific other income (11.5% including other income). The CFO stated the group margin is not directly comparable to segment-level margins, with roughly 70% of other income sitting in L&T standalone.
The completion timeline for the Hyderabad Metro stake sale has been extended to December 31, 2026, with all other terms unchanged. Under the Telangana-government understanding, the government pays Rs. 2,000 crores for L&T's equity and assumes Rs. 13,000 crores of SPV debt.
PP&M margin printed 7.0% in Q1 FY27 against the guided ~7.8% for FY27, a gap of 0.8 percentage points. Management has guided a stable ~7.8% PP&M margin for FY27, with legacy hydrocarbon projects handed over and margins expected to improve as newer projects progress.