Larsen & Toubro Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 78,749.94 Cr (+15.84% YoY) and PAT growth of +32.50% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 27, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 78,749.94 Cr (+15.84% YoY) |
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| PAT (Q2) | Rs. 5,202.10 Cr (+32.50% YoY) |
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| EBITDA margin | 8.69% (-132 bps YoY) |
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| EPS (Q2) | Rs. 37.81 (+32.50% YoY) |
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| Market cap | Rs. 504,690.71 Cr |
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| CMP | Rs. 3,665.10 |
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Quarter Snapshot
Q2 revenue accelerated to +15.84% YoY with record order inflow of Rs.1,47,665 crore (+27.5%) and a 1.88x book-to-bill, keeping the 10-12% FY27 revenue guidance on track. However, group EBITDA margin compressed 132 bps YoY to 8.69% and the PP&M portfolio remains ~0.8 pp below the guided ~7.8% margin, while headline PAT growth of 32.5% is flattered by treasury income, lower finance costs and a deferred-tax credit — core PBT grew only 7.73%. Order-book visibility of Rs.8.5 lakh crore and Middle East award momentum support the near-term growth thesis, but H2 margin execution is the key swing factor.
Key Investment Insights
Key Positives
- Record quarterly order inflow of Rs.1,47,665 crore (+27.5% YoY); order book at Rs.8,53,514 crore (+15.3% vs March), book-to-bill 1.88x
- Revenue grew 15.84% YoY to Rs.78,749.94 crore, accelerating from +7% in Q1; H1 growth of 11.41% within the 10-12% FY27 guidance band
- Energy-Conventional order inflow more than doubled (+104.45% to Rs.78,413 crore); international orders were 63% of Q2 inflow
- Energy-Green revenue rebounded +42.9% YoY to Rs.11,493 crore after Q1's supply-chain-hit decline
- Manufacturing & Products margin expanded to 15.7% from 13.5% YoY with revenue +33.5%
- Financial Services income +27.4% to Rs.5,307 crore, PBT +33.4%, NIM+fees at 10.5% vs 10.2%; loan book Rs.1,36,635 crore (+12% over March)
- Trade receivables fell 4.54% vs March while revenue grew; ISCR improved to 14.37x from 7.96x YoY
- Consolidated PAT to owners grew 32.5% YoY to Rs.5,202.10 crore with no exceptional items in Q2
Risk Factors
- Group EBITDA margin compressed ~132 bps YoY to 8.69% (10.01% in Q2 FY26); EBITDA grew only 0.56% on 15.84% revenue growth
- PP&M EBITDA margin stuck at ~7.03% for a second straight quarter, ~0.8 pp below the guided ~7.8% FY27 target
- Core PBT excluding other income grew only 7.73% YoY; headline PAT growth of 32.5% was flattered by other income (+66.6%), lower finance costs (-38%) and a deferred-tax credit
- Infrastructure & Utilities order inflow fell 12.87% YoY to Rs.35,509 crore on deferment of select targeted orders; margin slipped to 5.7% from 6.2%
- Energy-Green order inflow fell 45% YoY on solar order deferrals
- Realty revenue fell 42.9% YoY to Rs.225 crore with margin down to 54.3% from 67.6%