L&T Reports 3% Decline in Q4 Net Profit Amid Geopolitical Challenges
L&T net profit drops 3% to ₹5,326 crore in Q4
The Economic TimesImage: The Economic Times
Larsen & Toubro (L&T), India's largest engineering firm, reported a 3% year-on-year decline in consolidated net profit to ₹5,326 crore for Q4 FY26, impacted by one-off gains last year. Despite this, the company achieved record order inflows and anticipates a 10-12% growth in revenues for the current fiscal year amid geopolitical uncertainties.
- 01Consolidated net profit fell to ₹5,326 crore in Q4 FY26, down 3% from last year.
- 02L&T achieved record annual order inflows of ₹4.35 lakh crore, up 22% year-on-year.
- 03The company expects a 10-12% growth in order inflows and revenues for FY27.
- 04International revenue contributed 53% of total revenue in Q4.
- 05Rising geopolitical tensions, particularly in West Asia, may impact future business.
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Larsen & Toubro (L&T) reported a consolidated net profit of ₹5,326 crore for Q4 FY26, reflecting a 3% decline from the previous year due to exceptional gains recorded in the same quarter last year. The company's revenue rose 11% year-on-year to ₹82,762 crore, with international revenues accounting for 53% of total revenue. L&T achieved record annual order inflows of ₹4.35 lakh crore, marking a 22% increase compared to the previous year, and maintained a robust order book of ₹7.4 lakh crore. Despite the positive financial results, the company cautioned about the potential impact of geopolitical instability in West Asia on future order flows and revenue recognition. L&T's CFO, R Shankar Raman, indicated that while the past fiscal year was marked by volatility, the company remains optimistic about a strong project pipeline worth ₹17-18 lakh crore for FY27, primarily driven by infrastructure projects. The board has recommended a final dividend of ₹38 per share for FY26, pending shareholder approval. L&T's shares closed at ₹4,056.15, down 1.07% on the Bombay Stock Exchange (BSE) following the earnings announcement.
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The anticipated growth in L&T's revenues could lead to increased job opportunities and infrastructure development, benefiting local economies.
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