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L&T Q3 profit dips 4% on one-time labour law cost; revenue up 10%

Larsen & Toubro reported a 4% decline in consolidated net profit for Q3 FY26, primarily due to a one-time exceptional expense of Rs 1,191 crore related to new labour codes. Excluding this provision, the company's recurring profit after tax showed a robust 31% year-on-year growth. Revenue for the quarter increased by 10%, supported by strong execution, while the order book reached a record Rs 7.33 lakh crore, reflecting 30% growth. Chairman S N Subrahmanyan highlighted a landmark quarter with the highest-ever quarterly order inflow, crossing Rs 1 lakh crore in the Projects and Manufacturing portfolio.

Key Points: L&T Q3 profit slips 4%, revenue rises 10% on strong orders

  • Profit dips 4% to Rs 3,215 crore
  • One-time Rs 1,191 crore labour law provision
  • Underlying profit surges 31% to Rs 4,406 crore
  • Revenue grows 10% to Rs 71,450 crore
  • Order book swells 30% to Rs 7.33 lakh crore
2 min read

L&T Q3 profit slips 4 pc to Rs 3,215 crore; revenue rises 10 pc

L&T's Q3 FY26 net profit fell 4% to Rs 3,215 crore due to a one-time labour law provision, but underlying profit jumped 31% and order book hit Rs 7.33 lakh crore.

"recorded its highest-ever quarterly order inflow - S N Subrahmanyan"

Mumbai, Jan 28

Engineering and construction major Larsen & Toubro on Wednesday reported a 4 per cent decline in its consolidated net profit to Rs 3,215 crore for the quarter ended December 31, 2025, mainly due to a one-time exceptional expense linked to new labour laws, even as revenue and order inflows remained strong.

The company said it made a one-time material provision of Rs 1,191 crore, net of tax and non-controlling interest, towards employee benefits arising from the implementation of new labour codes.

This expense was classified under exceptional items and weighed on the reported profit for the quarter.

Excluding this one-time impact, L&T's performance was much stronger. The company posted a recurring profit after tax of Rs 4,406 crore in the December quarter -- marking a sharp year-on-year growth of 31 per cent.

Revenue for the quarter rose 10 per cent to Rs 71,450 crore, supported by steady execution across businesses in its Projects and Manufacturing portfolio.

L&T's operating performance also improved, with EBITDA rising 19 per cent year-on-year to Rs 7,417 crore in Q3 FY26.

Order momentum remained a key highlight for the company. The consolidated order book stood at Rs 7.33 lakh crore as of December 31, 2025 -- reflecting a robust 30 per cent growth compared to December 2024. International orders made up 49 per cent of the total order book.

Chairman and Managing Director S N Subrahmanyan described the quarter as a landmark period for the company.

He said L&T recorded its highest-ever quarterly order inflow, with orders in the Projects and Manufacturing portfolio crossing the Rs 1 lakh crore mark for the first time.

As a result, the company's total order book has now moved beyond Rs 7 lakh crore.

Segment-wise, the Infrastructure Projects business reported order inflows of Rs 61,876 crore during the quarter, registering a 26 per cent year-on-year growth.

International orders accounted for 55 per cent of this inflow, driven by large contracts in power transmission, distribution and renewable energy.

The Energy Projects segment secured fresh orders worth Rs 46,049 crore, up 19 per cent from a year ago.

This was supported by ultra-mega orders in hydrocarbon, offshore wind and CarbonLite solutions, with international markets contributing 43 per cent of the segment's total order inflow.

- IANS

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Reader Comments

R
Rohit P
Rs 7.33 lakh crore order book! That's mind-boggling. Almost half from international projects shows our companies can compete globally. This is the kind of growth story that makes me bullish on Indian infrastructure stocks.
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Aman W
Good to see the company making provisions for employee benefits under the new labour codes. It's a one-time hit but shows responsible governance. The underlying business health with 10% revenue growth and strong order inflow is very positive.
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Sarah B
As a long-term investor, I'm more focused on the recurring profit of Rs 4,406 crore and the order momentum. The international diversification (49% of order book) is a great hedge. The one-time expense is just noise in an otherwise strong quarterly report.
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Karthik V
Renewable energy and CarbonLite solutions getting big orders is the key takeaway for me. L&T is positioning itself perfectly for the green transition. This is where future growth will come from, not just traditional construction.
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Nikhil C
While the numbers look good, I have a respectful criticism. The article and company statement gloss over the impact of these "new labour laws." What exactly is this Rs 1,191 crore provision for? More transparency would help shareholders understand the future cost structure.

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