L&T's Profit Growth Accelerates as Margins Improve
Larsen & Toubro's Q1 profit rose 15.5% year-on-year, supported by a 50-basis-point expansion in net profit margin.
Larsen & Toubro reported a 15.5% rise in profit for Q1 FY27, outpacing revenue growth. The company's net profit margin improved, though quarterly revenue and profit declined sequentially.
Larsen & Toubro (L&T) delivered a strong year-on-year performance in the first quarter of FY27, with profit growth significantly outpacing revenue. The infrastructure giant's earnings benefited from improved profitability, even as quarterly figures softened from the previous quarter's peak.
Profit for the quarter ended June 2026 grew 15.5% to ₹4,988 crore, compared to the same period last year. Revenue rose 6.7% to ₹67,942 crore. This divergence indicates healthy operating leverage, with the net profit margin expanding by 50 basis points to 7.3%.
However, the results show a sequential decline from the typically strong fourth quarter. Revenue fell 17.9% and profit dropped 18.7% compared to Q4 FY26. This seasonal pattern is common, as Q4 often sees a higher concentration of project completions.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| 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 (%) | 7.3YoY +7.4% | 7.4 | 6.8 |
The table illustrates a consistent year-on-year improvement, with Q1 FY27 revenue and profit well above the levels of Q1 FY26. The trailing twelve-month (TTM) net profit margin stands at 6.8%, suggesting the latest quarter's margin is above the recent average.
On the stock market front, L&T shares have delivered a 10.3% return over the past year and a 52.5% return over three years. The stock trades at a price-to-earnings (P/E) ratio of 30.0, which is at a premium to the industry average of 24.8. The company maintains a robust return on equity of 18.6%.
The key takeaway is that L&T's core profitability is strengthening, setting a positive tone for the fiscal year ahead despite expected quarterly volatility.
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ISIN: INE018A01030
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