L&T order inflows in Q3 surge to record ₹1.36 trillion, top expectations

Beating market expectations, Larsen & Toubro Ltd (L&T) reported the highest order flow in any quarter in October-December 2025, as a revival in domestic private sector capital expenditure as well as continued strength in international orders led to a rise in new project awards.

India’s largest engineering and construction company received new orders worth ₹1.36 trillion, up 17% year-on-year in the quarter, pushing the total order book to a record ₹7.33 trillion at the end of the third quarter – passed for the first time ₹7 trillion marks.

There was an expectation in the market about this ₹According to Amit Anwani, vice-chairman and chief analyst of capital goods, industrial and defense at brokerage firm PL Capital, the order booking of Rs 90,000-1,00,000 crore came as a surprise. “This growth is led by strong domestic business growth, which bodes well for the coming quarters,” Anwani said.

“For the first time, the quarterly order flow in our projects and manufacturing (P&M) portfolio ₹1 lakh crore ( ₹“This is a clear reflection of the inherent strength of our capabilities and business model,” he said. SN Subrahmanyan, chairman and managing director of L&T, said in a press release.

So far in fiscal year 2026 (FY26), the company has ₹3.46 trillion and is comfortably positioned to beat its guidance of 10% growth in annual order flow, R. Shankar Raman, full-time director and chief financial officer of L&T, said in the post-earnings media call on Wednesday. Company achieves new business value ₹3.57 trillion in FY25.

While order inflows trended upwards, L&T’s consolidated profit for the December quarter fell 4% year-on-year. ₹3,215 crore under the weight of one-time provision ₹1,191 crore to comply with India’s new regulation business codes. Excluding this one-off provision, profit increased by a third year on year ₹4,406 crore.

On the other hand, consolidated revenues increased 10% year-on-year in the quarter. ₹Earnings before interest, tax, depreciation and amortization (EBIT) increased by almost a fifth to 71,450 crore. ₹7,417 crore. EBITDA margin increased by 71 basis points to 10.4%.

Unlike order intake, revenue and EBITDA were below market estimates ₹74,875 crore and ₹7,659 crore respectively, according to the consensus of four brokerages compiled by Mint. The consensus snow forecast was: ₹4,346 crore.

Revenue increased 12% in the first nine months of FY26 ₹2.03 trillion. The company maintained its 15% revenue growth target for the fiscal year.

Where do orders come from?

New order flow was led by the firm’s order-taking core infrastructure segment. ₹61,876 crore, an increase of over 25% compared to the same quarter last year. This was due to strong inflows from both domestic and international businesses, with orders split 55:45 in favor of overseas businesses.

Shankar Raman said nearly three-fifths of domestic infrastructure orders come from the private sector. These orders, he said, came from onshore oil and gas businesses, the energy sector, as well as new factory orders, among other things.

“Looking ahead, we remain optimistic that pro-growth momentum will be maintained in the ecosystem through sustainable capital expenditures,” Subrahmanyan said in a statement. “We expect additional policy push to strengthen domestic manufacturing and fiscal incentives to support the deepening of India’s digital and AI ecosystem.”

PL Capital’s Anwani says L&T is slowing down its water Infrastructure jobs decreased due to the weak economy, resulting in infrastructure revenues increasing by only 5%. “Despite this, the company maintained its target of 15% revenue growth for FY26,” he added.

The company’s pipeline (open tenders for which the company would consider bidding) was at the following stage: ₹5.96 trillion at the end of the quarter. Earlier, Kuwait, one of the company’s key overseas markets, had canceled $10 billion worth of oil and gas tenders, most of which L&T was the lowest bidder. The Middle Eastern country cited the budget deficit as the reason.

Of course, since these projects are not yet in the order book, they do not count as business loss for L&T, but they do mean that the company’s prospects have narrowed.

Shares of L&T closed marginally higher by 0.1 per cent ₹3,793.65 on BSE on Wednesday. Earnings were made public after trading hours.

The scrip has lost over 8% since the beginning of 2026; In comparison, the Sensex fell just over 3%. L&T is a component.