Larsen & Toubro reported Q2 FY27 consolidated revenue of about ₹78,750 crore, up 16%, and profit after tax of about ₹5,200 crore, up 33%, according to its results and the call of 27 October 2026. Management said order inflow was a record ₹1.48 lakh crore, up 28%, and the total order book was ₹8.54 lakh crore, also up 28%. About 54% of the order book is international, and of that, 73% is in the Middle East. EBITDA margin excluding other income was 8.7%, down from 10%, per the transcript. Spectate Media has not seen L&T's own filed transcript. This summary is based on a third-party copy that its publisher describes as AI-generated and editor-reviewed, so it carries no direct quotes and leaves out figures that could not be cross-checked.
For FY27, management guided to order inflow and revenue growth of 10% to 12% and a projects and manufacturing EBITDA margin of 7.8%. Net working capital was a record low of 1.7% of revenue, and cash and surplus were about ₹1 lakh crore. Management said it is building an AI factory in Chennai with over 10,000 NVIDIA GPUs, targeted for January 2027.
Positives
- Orders were a record. Inflow of ₹1.48 lakh crore was up 28%, with domestic projects orders up 49%, management said.
- Working capital improved. Net working capital fell to 1.7% of revenue from 4.1% in March 2026, and operating cash flow was ₹12,800 crore.
- Oman gas contract. L&T was selected as one of four contractors under a six-year framework with Petroleum Development Oman, and management sees $6 billion to $7 billion of prospects.
- New businesses are moving. Management cited data centres, semiconductors and electronics, with an initial battery storage order and EV traction motor production planned for the third quarter.
Watch-points
- Margins fell. EBITDA margin dropped to 8.7% from 10%, and infrastructure margin fell to 5.7% from 6.2%, which management linked to water projects.
- Green energy orders dropped 45%. Management attributed it to deferred Middle East solar projects.
- Middle East exposure. Analysts asked about the Strait of Hormuz, and about three-quarters of the international book is in the region.
- Funding the AI build-out. Management said the 10,000 GPUs cost close to $750 million and that the rest of the 100 MW-plus plan will need new debt, without giving a figure.
Source: L&T Q2 FY27 earnings call transcript (Investing.com copy).
This is a summary of a company earnings call, published as general information. It is not investment advice or a recommendation to buy or sell any security. Read the full transcript before relying on any point.
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