Q2 2026 Larsen and Toubro Ltd Earnings Call Transcript
Key Points
- Larsen & Toubro Ltd (LTOUF) reported a 45% YoY growth in order inflows for Q2 FY26, driven by strong activity in India and the Middle East.
- The company's order book expanded to INR6.67 trillion, reflecting a 31% YoY increase, providing strong revenue visibility.
- Group revenues grew by 10% YoY in Q2 FY26, with the Projects & Manufacturing portfolio margin improving from 7.6% to 7.8%.
- Larsen & Toubro Ltd (LTOUF) secured ultra mega orders in the Middle East for its hydrocarbon business, enhancing its international presence.
- The company entered strategic partnerships in renewables, defense, and semiconductors, strengthening its future growth foundation.
- The EBITDA margin for Q2 FY26 declined to 10% from 10.3% in the previous year, primarily due to margin compression in the IT&TS segment.
- Execution in the Infrastructure Projects segment was subdued, attributed to an extended monsoon season and slower progress in rural water supply projects.
- The Energy segment margin declined from 8.9% to 7.3% due to cost overruns in some domestic and international projects.
- The Hyderabad Metro posted a loss of INR1.75 billion in Q2 FY26, although it was an improvement from the previous year's loss.
- The company faces challenges in the water segment due to payment issues, leading to slowed execution and impacting working capital.
Ladies and gentlemen, good day, and welcome to the Q2 H1 FY26 earnings conference call hosted by Larsen & Toubro. (Operator Instructions)
I now hand the conference over to Mr. P. Ramakrishnan from Larsen & Toubro. Thank you, and over to you, Mr. Ramakrishnan.
Thank you, Ruthuja. Good evening, ladies and gentlemen. A warm welcome to all of you into the Q2 H1 FY26 earnings call of Larsen & Toubro. The earnings presentation was uploaded on the stock exchange and in our website around 6:20 PM. Hope you had a chance to take a quick look at the numbers.
I will first walk you through the important highlights for Q2 FY26 in the next 20 to 25 minutes or so, post which we will take questions. Kindly note that when the Q&A session starts, I will also have with me our Deputy Managing Director and President, Mr. Subramanian Sarma.
Before I begin the overview, the disclaimer from our end, the presentation, which we have uploaded on the
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