L&T's Profitability Improves Despite Seasonal Quarter-on-Quarter Dip
The infrastructure giant reported a 15.5% yearly profit jump, with net profit margin expanding to 7.3% in Q1 FY27.
Larsen & Toubro's first-quarter profit grew faster than revenue, lifting its net profit margin. While sequential figures dipped from a strong Q4, the yearly comparison shows solid operational improvement.
Larsen & Toubro began its new fiscal year with a clear improvement in profitability. While revenue and profit both declined sequentially from a seasonally strong fourth quarter, the company's profit grew significantly faster than its sales compared to the same period last year, indicating better operational leverage.
The first quarter of FY27 saw revenue of ₹67,942 crore, up 6.7% from Q1 FY26. Profit after tax rose a sharper 15.5% year-on-year to ₹4,988 crore. This divergence lifted the net profit margin to 7.3%, a 50 basis point improvement from 6.8% a year ago. The quarter-on-quarter declines of 17.9% in revenue and 18.7% in profit are typical for the infrastructure sector, reflecting the usual slowdown after the year-end project completion rush in Q4.
A look at the last five quarters shows the company maintaining revenue above ₹67,000 crore while profitability has become more consistent in recent periods.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 67,941.74YoY +6.7% | 82,762.16 | 63,678.92 |
| Profit (₹ Cr) | 4,988.03YoY +16% | 6,133.06 | 4,318.17 |
| Net Profit Margin | 7.3%YoY +7.4% | 7.4% | 6.8% |
Key Points
- The trailing twelve-month (TTM) net profit margin stands at 6.8%, with TTM profit of ₹19,624 crore.
- The company maintains a robust return on equity of 18.6%.
- The stock has delivered an 11.1% return over the past year and trades at a P/E of 30.0, a premium to its industry.
The focus now shifts to whether L&T can sustain this improved margin profile as it executes its large order book through the remainder of the year.
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· LT
(BSE)
ISIN: INE018A01030
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