L&T Q2 Results October 27, 2026: Profit Up 33% to ₹5,202 Crore as Margins Slip

L&T Q2 results came out on the evening of October 27, 2026, and they tell two stories at once. Larsen & Toubro’s profit attributable to shareholders rose 33% year-on-year to ₹5,202 crore for the July-September quarter, from ₹3,926 crore a year earlier, according to the company’s consolidated results filing. Order wins hit a fresh record. The operating margin, though, went the other way.

L&T Q2 results: the numbers that matter

• Net profit (owners’ share): ₹5,202 crore vs ₹3,926 crore in Q2 FY26, up about 33%, and up about 26% from ₹4,123 crore in the June quarter (company filing).
• Revenue from operations: ₹78,750 crore vs ₹67,984 crore, up about 16%. International revenue was ₹45,870 crore, or 58% of the total, as reported by ET Markets.
• EBITDA: ₹6,845 crore vs ₹6,806 crore, up only about 0.6% (ET Markets).
• EBITDA margin: 8.7% vs 10% a year ago, a fall of 130 basis points, per Moneycontrol.
• Order inflow: ₹1,47,665 crore, up 28%, with international orders at ₹92,375 crore, or 63% of the quarter’s wins.
• Order book: ₹8,53,514 crore as of September 30, up 15% over March 2026, with 54% of it international (ET Markets).

How profit grew 33% when EBITDA barely moved

This is the part we’d spend the most time on. Operating profit was almost flat, yet the bottom line jumped by a third. The filing shows where the gap came from. Other income rose to ₹2,306 crore from ₹1,384 crore a year ago. Finance costs fell about 38%, to ₹473 crore from ₹763 crore. Depreciation also dipped slightly, to ₹1,037 crore from ₹1,092 crore.

So a good chunk of the profit growth sits below the operating line. That isn’t a red flag by itself, since lower borrowing costs are a real gain. But it does mean the core engineering business didn’t get more profitable this quarter. Moneycontrol reported that margins were squeezed by higher input costs in both the infrastructure and energy businesses, and that L&T’s Director and President (Finance) R Shankar Raman said the company is passing costs on to customers, including in West Asia.

Revenue grew about 16% but EBITDA grew less than 1%. The profit jump leaned on other income and lower finance costs, not on fatter project margins.

The order book is the bright spot

Chairman and MD S N Subrahmanyan called it another record quarter for order inflow and said the order book of about ₹8.5 lakh crore gives multi-year revenue visibility. Hydrocarbon (offshore and onshore), CarbonLite Solutions, public spaces and airports, and power transmission led the wins.

Not every segment pulled its weight, though. ET Markets reported that Infrastructure & Utilities orders fell 13% to ₹35,509 crore because some targeted orders were deferred, while green energy orders dropped 45% to ₹6,558 crore on solar deferrals. The record came mostly from overseas hydrocarbon work.

For the first half of FY27, revenue rose 11% to ₹1,46,692 crore and profit attributable to owners rose 24% to ₹9,325 crore.

What to watch next

The results came after market hours. Before the announcement, L&T shares settled 0.40% lower at ₹3,665.10 on the NSE, ET Markets reported, so the stock’s first real reaction comes on October 28. Two questions matter more than the headline. Can margins recover as newer, better-priced orders replace older contracts hit by cost inflation? And will the deferred domestic infrastructure and solar orders show up in the second half? We tracked L&T’s recent contract wins in our piece on L&T orders.

If you want to split a results filing into operating performance and one-offs the way we did here, our guide on how to analyse quarterly results walks through it.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.