Larsen & Toubro Ltd
L&T Reports Record ₹4.36 Lakh Crore Order Inflows 📈 | International Revenue Hits 54%
- Larsen & Toubro Limited will hold its 81st Annual General Meeting (AGM) on June 5, 2026, via video conferencing.
- The Integrated Annual Report for FY 2025-26 has been released, including Business Responsibility and Sustainability Reporting.
- Record order inflows of ₹4.36 lakh crore, up 22% year-on-year, driven by Infrastructure and Energy sectors.
- Order book reached a record high of ₹7.40 lakh crore, with international orders constituting 52%.
- Group revenue grew 12% to ₹2.86 lakh crore, and recurring profit after tax increased 18% to ₹17,238 crore.
- Net debt-to-equity ratio improved to 0.35:1 from 0.6:1 in the previous year.
- Recommended a final dividend of ₹38 per share for FY 2025-26.
- Key projects include Kartavya Bhavan, Navi Mumbai Airport, and Rajasthan Atomic Power Plant milestones.
- Strategic divestments include Hyderabad Metro Rail for ₹1,461.47 crore and Nabha Power for ₹6,889 crore.
- Focus on ESG: Green business accounted for 51% of standalone revenue; planted over 1 million saplings.
- CSR initiatives benefited over 1.9 million people, including education, healthcare, and water security programs.
- Emphasis on technology adoption: Over 17,000 assets connected digitally; developed 100+ algorithms.
- New collaborations include partnerships with NVIDIA for AI data centers and Hitachi Energy for HVDC projects.
- Rebranding of LTIMindtree to LTM Limited, focusing on AI-centric services.
- Safety performance: Achieved 1,369 million accident-free working hours with 'Vision Know Harm' strategy.
- L&T Group achieved record order inflows of ₹4,35,590 crore in FY 2025-26, a 22.1% year-on-year growth, with international orders accounting for 58%.
- Order book reached a record ₹7,40,327 crore as of March 31, 2026, providing strong revenue visibility, with infrastructure segment contributing 57%.
- Revenue for FY 2025-26 was ₹2,85,874 crore, a 12% growth year-on-year, with services businesses maintaining a 26% share.
- Divestment initiatives included selling Nabha Power Limited to Torrent Power and executing an agreement for L&T Metro Rail (Hyderabad) Limited disposal.
- Hydrocarbon business was reorganized into Onshore, Offshore, and Offshore Wind units for operational focus and growth.
- New businesses like Larsen & Toubro Vyoma (data centers), L&T Semiconductor Technologies, and SuFin (B2B platform) were scaled, with Vyoma reaching 26 MW capacity.
- Green business portfolio stood at ₹787 billion, representing 51% of standalone revenues, with initiatives like a 300 KTPA green ammonia project in Gujarat.
- Strategic plan Lakshya 2031 focuses on AI-led growth, energy transition, and profitability improvements, with goals for carbon neutrality by 2040 and water neutrality by 2035.
- Risk management addressed geopolitical tensions, supply chain disruptions, and commodity price volatility, with significant hedging on commodities like aluminum (92.51% hedged) and copper (90.09% hedged).
- Gross debt-equity ratio was 1.08:1 including borrowings held for sale, with parent entity maintaining a low gearing of 0.16x.
- Consolidated revenue grew 11.8% year-over-year to ₹2,85,874 crore in FY 2025-26, driven by project execution and manufacturing.
- International revenue share increased to 54% from 50%, reflecting strong overseas order conversion.
- Private sector order book share rose to 39% from 28%, while international orders grew to 52% of the consolidated order book.
- Operating profit (PBDIT) increased 10.3% to ₹29,151 crore, though EBITDA margin slightly declined to 10.2% due to cost pressures.
- Profit after tax (PAT) rose 7.0% to ₹16,084 crore, with basic EPS improving to ₹116.93 from ₹109.36.
- Net worth increased to ₹1,09,290 crore, but return on net worth (RONW) declined to 15.5% due to a one-time gratuity revision impact.
- Cash flow from operations surged to ₹16,741 crore from ₹9,151 crore, supported by efficient working capital management.
- Total borrowings decreased to ₹1,21,683 crore, with gross debt-to-equity ratio improving to 0.95:1 from 1.12:1.
- Infrastructure Projects segment orders grew 14.9% to ₹1,99,064 crore, though revenue growth was modest at 3.1%.
- Standalone order inflow increased 21% to ₹2,90,574 crore, but PAT declined 42% due to exceptional items like gratuity revisions.
- Increased government budget allocations for new and upgraded defence infrastructure, creating project opportunities.
- Major international projects secured: Dubai-Abu Dhabi HSR civil works, Riyadh Metro Line 2 extension (1.3 km viaduct, 7.1 km tunnel), and Sharjah University Station.
- Large-scale pumped storage projects: 3,000 MW Saidongar-1 Karjat PSP and 1,500 MW Bhavali PSP with reservoirs and underground powerhouses.
- LIGO India Observatory contract for civil infrastructure and vacuum systems.
- Completion of key infrastructure projects: Dabhol Breakwater, Thane Creek South Bridge, MMRC UGC-01, and RRTS Package 7.
- Record tunnel lining achievement: 504.2 m RCC tunnel in one month.
- Power Transmission & Distribution: Orders include ±800 kV HVDC link, 765 kV RE transmission lines, and substations in Saudi Arabia, UAE, Kuwait, Qatar, Oman, and Uzbekistan.
- Renewables: Orders for 1.5 GW solar PV, 241 MWh BESS, 228 MW floating solar in India; 6 GW solar PV in Saudi Arabia; 1.8 GW wind and 978 MWh BESS in Central Asia.
- Water & Effluent Treatment: Major projects in Assam, Rajasthan, Odisha, and Delhi, including pipelines, treatment plants, and irrigation systems.
- Minerals & Metals: Contracts with Tata Steel, Hindalco, and Hindustan Zinc for smelters, refineries, and processing facilities.
- Energy Hydrocarbon Onshore: Ultra-mega order from QatarEnergy LNG for NGL-5 plant; large orders from Saudi Aramco, BPCL, Petronet LNG, and Bharat Coal Gasification.
- Energy Hydrocarbon Offshore: Comprehensive EPCIC solutions with fabrication facilities in India and Oman, and marine fleet including LTS 3000 and LTB 300 vessels.
- Outlook: Strong growth driven by infrastructure investments, renewable energy targets (e.g., GCC aiming for ~230 GW by 2030), and expansion in domestic and international markets.
- Won major contracts from Saudi Aramco including Zuluf Redevelopment PKG 1 & 2 for 15 platform replacements and pipelines, plus orders for 10 jackets and 2 Production Deck Modules.
- Secured significant EPCIC order for 7 jackets from Al Khafji Joint Operations in Kuwait-Saudi offshore area.
- Completed key projects like Zuluf Water Injection Facilities and dispatched modules for Linde Blue H2 Project in the US and CERES Project in Australia.
- Advanced digitalization with AI-driven tools like Drishti for knowledge management and real-time HSE monitoring via video analytics.
- Expanding offshore wind business with ultra-mega HVDC order from TenneT and European entry via L&T Energy Offshore Wind B.V. in Netherlands.
- Heavy Engineering segment grew revenue by 42.3% to ₹14,489 crore, with international order share rising to 32%.
- Precision Engineering & Systems secured orders like All-Terrain BvS10 Sindhu Platforms for Indian Army and advanced in combat systems and aerospace.
- IT & Technology Services segment revenue grew 11.3% to ₹53,497 crore, with 91% from international markets, focusing on AI-led transformations.
- LTM Limited expanded AI-centric services across verticals like healthcare, energy, and banking, with key deals in SAP, Azure, and cybersecurity.
- L&T Technology Services reached USD 1.22 billion revenue run rate, partnering with 69 Fortune 500 companies on digital engineering and ER&D.
- LTTS launched Lakshya 31 plan focusing on Software & AI, Plant Build Out & Modernisation, Energy, Automation/Digital Manufacturing, Next-Generation Compute, Software Defined Mobility, and MedTech.
- Company divested Smart World & Communication (SWC) business to reallocate capital to high-growth areas.
- LTTS secured large deals including a USD 100 million contract with a US industrial equipment manufacturer and a USD 75 million partnership with a global energy major.
- LTTS filed 1,706 patents (237 in AI/GenAI) and partnered with SiMa.ai and NVIDIA for AI advancements.
- New initiatives include an Engineering Design Center in Texas and ODCs in Vadodara, Mysore, and Pune.
- L&T Semiconductor Technologies (LTSCT) expanded with product shipments to Japan and launched communication modules SAC20 and LCC40.
- LTSCT acquired Fujitsu's power module tech and formed partnerships with HYS, Andes Technology, and BharatGen.
- L&T EduTech upgraded platforms with AI, launched EV Skill Lab, and expanded to 60+ institutional customers.
- L&T-SuFin B2B platform reached INR 8,000 crore GMV in FY25-26, with 70,000+ buyers/sellers and 8 lakh+ SKUs.
- Larsen & Toubro Vyoma data center business commissioned 26 MW capacity, with plans for 36 MW AI-ready green data center.
- L&T Finance grew retail loan book to INR 1,19,500 crore, with 98% retailisation, and launched AI projects Cyclops and Nostradamus.
- L&T Finance expanded through acquisitions (e.g., Paul Merchants Finance) and partnerships with Google Pay and SuperMoney.
- L&T Finance entered the gold loan business by acquiring Paul Merchants Finance's portfolio, including 130+ branches, ~700 employees, and ~1,300 crore loan book.
- L&T Finance launched Project Cyclops, an AI-driven credit engine using machine learning for credit lifecycle management, and Project Nostradamus for early warning signals on credit stress.
- The company maintained strong liquidity with positive cumulative gaps in structural liquidity statements for all buckets up to one year in FY 2025-26.
- L&T Finance's retail loan disbursements grew 38% y-o-y to ~83,226 crore, with the retail loan book reaching ~1,21,728 crore, up 25% y-o-y.
- Asset quality improved: Gross NPA declined to 2.88% (from 3.29%) and Net NPA to 0.96% (from 0.97%) as of March 31, 2026.
- L&T is divesting its stake in Nabha Power Limited to Torrent Power and selling its entire shareholding in L&T Metro Rail (Hyderabad) Limited to the Government of Telangana.
- L&T Green Energy business commissioned a 1 MW green hydrogen plant at Kandla and secured a 10 KTPA green hydrogen supply contract with Indian Oil Corporation for 25 years.
- L&T Realty achieved presales of over ~10,000 crore, launching projects like Green Reserve (Noida) and Crestoria Estate (Panvel), and expanded its portfolio by ~15 million sq.ft.
- The Construction Equipment & Industrial Products division saw steady demand, with L&T Valves Limited supplying large-scale valves for refining and petrochemical applications.
- L&T emphasized ESG integration, including climate risk analysis in rural portfolios and achieving ISO 27001:2022 certification for IT security.
- L&T is promoting smart construction technologies like 3D mapping, machine guidance, and data analytics to improve customer value creation.
- L&T Valves Limited (LTVL) expects long-term growth in industrial valves due to investments in energy security, infrastructure, and industrial expansion.
- L&T Construction Equipment Limited (LTCEL) anticipates stable demand from infrastructure, mining, and urban development projects.
- Rubber Processing Machinery (RPM) sees steady global tire demand driven by replacement needs and electric vehicle penetration.
- L&T hired over 2,200 Graduate and Postgraduate Engineering Trainees and 1,100 other young professionals in FY 2025-26.
- Campus engagement included CreaTech (14,500+ participants) and OutThink (6,700+ students) competitions to identify talent.
- Over 2,000 employees were assessed through Development Centres, with personalized growth plans implemented.
- L&T integrated ESG metrics into performance management, linking them to annual appraisals.
- AI and digital tools are being used in HR, including HEERA Plus (AI-powered HR platform) and AI-driven recruitment solutions.
- L&T has approximately 5,300 women employees, with initiatives like WINSPIRE focusing on women's leadership development.
- Employee wellness programs include mental health support, mindfulness workshops, and Panchakosha Wellness sessions.
- L&T was ranked the 9th most valuable brand in India by Brand Finance in 2025 and received multiple HR and sustainability awards.
- Key financial figures: Order book of ₹6,13,235 Cr, turnover of ₹1,53,680 Cr, and PBIT of ₹17,938 Cr for FY 2025-26.
- Sustainability efforts: GHG emissions of 0.9 Mn tCO2e, water offset of 4 Mn kl, and CSR spend of ₹189.9 Cr.
- Infrastructure created: 67.1 Mn sq. ft. building space, 6,900 ckm transmission lines, and 8,006 MWp solar capacity.
- L&T conducted its first Double Materiality Assessment in FY 2025-26, evaluating 15 material topics across environmental, social, and governance dimensions.
- Key environmental priorities include climate change (carbon neutrality by 2040, water neutrality by 2035), air quality management, and water/waste management.
- Social priorities focus on labor practices, diversity & inclusion, talent management, community relations, and occupational health & safety.
- Governance topics cover business ethics, data privacy, cybersecurity, sustainable supply chains, and geopolitical risk management.
- The company strengthened sustainability governance with Board oversight, executive leadership accountability, and cross-functional councils.
- L&T implemented robust policies including Anti-Bribery/Anti-Corruption, Whistleblower mechanisms, and POSH (Prevention of Sexual Harassment).
- Cybersecurity measures include ISO 27001 certification, 24/7 Security Operations Center, and alignment with DPDP Act requirements.
- Sustainability reporting follows BRSR, Integrated Reporting, and global frameworks (GRI, ESRS), with third-party assurance on key KPIs.
- Digital engagement tools (L&T-EARTH platform) and stakeholder portals enhance transparency and data governance.
- Strategic priorities include ESG integration, community development, and leveraging digital media for stakeholder communication.
- L&T commits to achieving Carbon Neutrality by 2040, covering Scope 1 and 2 emissions, with a baseline from FY 2020-21.
- Renewable electricity consumption increased by 42% year-on-year to 98 million kWh, representing 19% of total electricity consumption in FY 2025-26.
- Energy intensity reduced by 4.5% and emissions intensity (Scope 1+2) decreased by 4.8% compared to the previous year.
- Total energy consumption was 10.2 million GJ, with diesel accounting for approximately 75%.
- Wastewater recycling reached 2.7 million kl, contributing to a 24% reduction in water consumption intensity.
- Net freshwater withdrawal intensity improved to 86.1 kl/₹Cr, down from 115.1 kl/₹Cr in the prior year.
- Waste generation intensity increased to 3.9 tonnes/₹Cr, with 309,750 tonnes of non-hazardous waste recycled/reused.
- L&T planted approximately 1 million saplings in FY 2025-26, with over 10 million planted in the last five years.
- The company is advancing biodiversity conservation, including relocating over 800 vulnerable Central Asian Tortoises in Uzbekistan projects.
- Initiatives include biodiesel adoption (~4,900 tCO2e avoided), renewable energy sourcing (~6,130 tCO2e avoided), and equipment electrification (~685 tCO2e avoided).
- L&T implemented dust suppression measures including water sprinkling and wheelwash facilities to control air emissions.
- Ambient air quality monitoring conducted by third-party agencies with regulatory reporting to authorities.
- Noise management includes PPE for workers, noise barriers, and continuous monitoring systems.
- L&T has 16 green-certified buildings, with two achieving LEED Platinum in Chennai.
- Delivered 19.7 million sq. ft. of client infrastructure aligned with green building standards.
- Introduced Green Campus Framework for offices, with five locations achieving 'Leader' status.
- Issued Sustainability Linked Bond (SLB) of ₹500 crore and USD 700 million trade facility.
- Reduced GHG emissions intensity by 4.8% and freshwater withdrawal intensity by 25.2%.
- Conducted climate risk assessments using IPCC and IEA scenarios for physical and transition risks.
- Identified risks like heat stress, flooding, and policy changes, with mitigation strategies.
- Green Business revenue reached ~₹78,700 crore, accounting for 51% of total revenue.
- Focused on talent development with 2,200 engineering trainees hired and global internship program launched.
- ESG KPIs integrated into performance management, affecting promotions and incentives.
- Advanced to 2nd rank in ENR Top 200 Environmental Firms survey in 2025.
- L&T's Corporate Technology & Engineering Academy (CTEA) provides role-based technical training, including precast technology labs for industrial construction.
- CTEA offers structured programs for trainees (PGETs, GETs, DETs) and supervisors, focusing on engineering, safety, and site practices.
- Safety certifications like NEBOSH and health/environment programs are conducted, with over 32,000 employees trained in AI literacy.
- Higher education partnerships with institutions like IITs, NITs, and BITS Pilani support employee development in construction, management, and safety.
- Digital learning platform ATL Varsity uses AI for personalized training, with 59,780 unique learners and 3.9M+ total learning hours.
- DEI initiatives include ~30% women in campus hires, reduced attrition to 10.7%, and policies supporting inclusivity and work-life balance.
- EHS governance includes a Council chaired by Deputy MD, with focus on zero harm, Life Saving Rules, and digital tools for safety compliance.
- Human rights commitment enforced through policies, supplier codes, and grievance mechanisms, with >11,000 employees trained on human rights.
- Workplace wellness programs cover physical and mental health, with 27 sessions for 16,267 participants and 55 mental health webinars.
- Future HR focus includes AI-driven processes, leadership development, and capability building aligned with L&T's strategic goals under Lakshya.
- L&T invested ₹524 crore in R&D over the last three years, focusing on innovation and digital transformation.
- The company developed sustainable construction materials, including an alternative Cement Treated Base layer reducing carbon emissions by ~15% and Limestone Calcined Clay Cement (LC3) with 30-40% lower carbon footprint.
- Implemented digital tools like real-time concrete strength estimation, reducing testing time by over 20% and costs by ~60%.
- Advanced AI and automation across projects, including AI-driven mix design optimization and automated inspection crawlers for weld testing.
- Launched L&T Cognitive Services (LNTCS) to embed AI across enterprise functions, improving supply chain, engineering, and decision-making processes.
- Focused on indigenous development, such as indigenizing Overhead Electrification components for the Mumbai-Ahmedabad High-Speed Rail project, reducing costs and timelines.
- Enhanced community development through CSR initiatives, benefiting 19,40,601 people in areas like watershed management, agriculture, and sanitation.
- Promoted sustainable practices in agriculture and livestock management, improving rural livelihoods and resilience.
- Strengthened safety and efficiency with digital solutions like VR-based training, AI-enabled PPE monitoring, and automated safety systems.
- Emphasized organizational excellence through the L&T Business Excellence Model (LTBEM) and Pi-Awards, recognizing innovation across projects, products, and ESG initiatives.
- L&T's Unnati programme constructed 4,723 sanitation units across 11 locations in India, with 2,984 households adopting toilet usage, leading to 41 villages achieving Open Defecation Free (ODF) status.
- In Maharashtra, L&T built a school sanitation block benefiting 313 students, improving hygiene and learning conditions, especially for adolescent girls.
- In Tamil Nadu, 150 household toilets were constructed, including one for Mrs. Palaniammal, enhancing safety, dignity, and hygiene for women in low-income households.
- Health initiatives focused on nutrition, maternal care, and hygiene, with interventions like kitchen gardens, health camps, and support for pregnant women, improving health outcomes and awareness.
- Education programmes reached 2,381 children across 12 villages, improving reading fluency from 43.5% to 75.5% and numeracy skills significantly.
- L&T's STEM Education Programme (Jyoti) trained 1,176 teachers and engaged 51,741 students, with 69.5% showing improved Maths and Science grades.
- Skill development initiatives trained 13,102 candidates, with a 61% placement rate and increased monthly incomes up to ₹40,000 for some roles.
- Healthcare services included 10 Community Health Centres and 12 Mobile Health Units, providing care to underserved communities, with cancer screening reaching 5,095 beneficiaries.
- Employee volunteering involved 10,461 L&T employees in activities like STEM workshops and health camps, contributing over 191 volunteer hours in initiatives like JalTarang.
- L&T linked CSR efforts to government schemes like Swachh Bharat Abhiyan and Ayushman Bharat, enhancing reach and sustainability of interventions.
- L&T conducted sustainability assessments on 289 critical supply chain partners over the last two years, with 169 assessed in FY 2025-26.
- Partners were categorized into three ESG risk bands: Green (>60% score, Leader), Yellow (40-60%, Emerging), and Amber (<40%, Aspirant).
- Initial assessment results: 63 Green, 50 Yellow, 56 Amber. After interventions, results improved to 104 Green, 30 Yellow, 35 Amber.
- L&T provided training and handholding workshops for Yellow and Amber partners, focusing on ESG gaps like EMS implementation and climate risk management.
- Certification highlights: 101 partners had ISO 9001, 90 had ISO 14001, and 92 had ISO 45001 certifications.
- Sustainable sourcing from Green-rated partners accounted for ~20% of purchase value.
- Order inflow grew 21% YoY, with 47% from international orders. Revenue grew 8%, and recurring PAT grew 26%.
- Economic value generated was ₹1,64,828 crore, with ₹8,169 crore retained after distributions.
- ESG ratings: MSCI 'A', CDP 'B' for Climate, 'B-' for Water, 'C' for Forests; CRISIL 'Strong' (62/100).
- Employee and worker totals: 57,377 employees (90.7% male, 9.3% female) and 3,80,065 workers (99.4% male, 0.6% female).
- The company has a formal grievance redressal policy accessible to all registered vendors, with mechanisms for employees, contract workers, community, and customers detailed in Principles 3, 8, and 9.
- A comprehensive double materiality assessment was conducted to prioritize key ESG issues, with disclosures available in the Integrated Annual Report FY 2025-26.
- All company policies cover each NGRBC principle and its core elements, approved by the Board or relevant committees, and are publicly available at Corporate Policies.
- Policies have been translated into operational procedures via Standard Operating Procedures (SOPs) and internal guidelines for effective implementation.
- Policies extend to value chain partners through frameworks like the Code of Conduct for Suppliers and Whistleblower Policy for Vendors and Channel Partners.
- The company adheres to multiple national and international standards, including SEBI regulations, ISO 14001, ISO 45001, SA 8000, and ISO 27001, mapped to each principle.
- Key performance targets for FY 2025-26 include: Green Business revenue at 51% (target 55%), emissions intensity reduction at 32% (target 30%), tree plantation at 1 million (target 1.5-2 million), gender diversity at 9.6% (target 10%), and safety metrics LTIFR at 0.02 (employees) and 0.09 (workers).
- Ambitious sustainability goals include Carbon Neutrality by 2040 and Water Neutrality by 2035, with a 32% reduction in GHG emissions intensity achieved in the first cycle (FY 2020-21 to FY 2025-26).
- Green Business portfolio revenue reached ~₹78,700 Crore, accounting for 51% of total revenue, with recognition in global rankings like ENR's Top 200 Environmental Firms (2nd rank).
- Safety initiatives included 7.4 million safety training hours and over 375,000 contract workers trained under the 'VISION K NO W HARM' strategy.
- CSR initiatives impacted approximately 1.9 million lives, with programs like Unnati, Nayi Disha, and Project Jyoti focusing on community development, migrant workers, and STEM education.
- The Chairman & MD and Board oversee business responsibility policies, supported by the CSR & Sustainability Committee for decision-making on sustainability issues.
- No fines, penalties, or corruption cases were reported for Directors, KMPs, employees, or workers in FY 2025-26.
- Accounts payable days were 128 in FY 2025-26, with purchases from trading houses at 0.45% and related party transactions at 7.21% for purchases and 1.46% for sales.
- Awareness programs covered 100% of employees and workers, with topics including safety, human rights, and sustainability, and extended to value chain partners through training sessions.
- Employee well-being expenditure was 0.54% of total revenue (~₹822 Cr) in FY 2025-26, up from 0.49% (~₹700 Cr) in FY 2024-25.
- Retirement benefits (PF, Gratuity, ESI) are provided to 100% of employees and workers, with deposits made to authorities.
- Workplaces are accessible for differently abled employees, featuring ramps, dedicated parking, and elevators.
- Equal opportunity policy is in place, aligned with the Rights of Persons with Disabilities Act, 2016.
- Return-to-work rate for female employees after parental leave was 96%, with an 87% retention rate in FY 2025-26.
- Grievance mechanisms exist for all employee and worker categories, including a digital platform (HEERA) for permanent employees.
- 100% of permanent workers are union members, while no permanent employees are part of unions.
- Training coverage: 100% of employees received skill upgrade training; 95% of workers received health and safety training in FY 2025-26.
- Performance reviews are conducted for 100% of employees and workers annually.
- Occupational health and safety management system (ISO 45001:2018 certified) covers all locations, with processes for hazard identification and reporting.
- Safety incidents: LTIFR improved for employees (0.02) and workers (0.09) in FY 2025-26; fatalities decreased to 1 employee and 29 workers.
- Complaints on working conditions (1,013) and health & safety (516) were filed in FY 2025-26, with none pending resolution.
- Human rights training covered 50% of employees and 95% of workers in FY 2025-26.
- All employees and permanent workers receive wages above minimum wage; 90% of non-permanent workers receive minimum wage.
- Median remuneration: Employees (male: ₹12.48L, female: ₹8.01L); Workers (male: ₹11.63L, female: ₹19.43L).
- 9 POSH complaints filed in FY 2025-26, with 6 upheld; no complaints on discrimination, child labor, or forced labor.
- Human rights requirements are integrated into business contracts, with mandatory Supplier Code of Conduct aligned to UN Global Compact and ILO standards.
- 289 critical supply chain partners assessed (~22% by value), covering governance, ethics, human rights, health/safety, and environment.
- No significant human rights risks identified; all partners must comply with Code of Conduct during onboarding.
- Energy consumption: Total 10.22 million GJ in FY2025-26, with 4.5% reduction in energy intensity vs. prior year.
- Water withdrawal: 174.6 million kiloliters, with 24% reduction in water consumption intensity.
- GHG emissions: Scope 1 (617,113 tCO2e), Scope 2 (289,920 tCO2e), Scope 3 (6.55 million tCO2e); total intensity decreased.
- Waste generated: 596,194 metric tons, with 21% increase in intensity due to project closures; 52% was recovered/reused.
- Zero Liquid Discharge implemented at 7 major facilities; wastewater recycled for non-potable uses.
- Compliance maintained across all ecologically sensitive operations (e.g., CRZ areas, wildlife reserves).
- Key initiatives: Shift to grid power (avoided 8,709 tCO2e), renewable energy use (avoided 6,130 tCO2e), wastewater recycling (saved 115,000 kL water).
- Advocacy efforts: Engaged on nuclear energy policy (SHANTI Act), procurement reforms, and Jal Jeevan Mission refinements.
- Grievance mechanisms: Community complaints addressed via multiple channels; CSR grievances handled via dedicated email.
- 11% of input materials sourced from MSMEs; 64% sourced domestically within India.
- 89% of jobs created within India, with focus on smaller towns.
- Job creation locations categorized by RBI classification: 86% in metropolitan areas for FY 2025-26, up from 80% in FY 2024-25.
- Engaged over 375,000 contractual workers across 600+ locations in FY 2025-26, with 21% from rural areas and 26% from semi-urban areas.
- CSR spending totaled ₹3.26 crore in aspirational districts across states like Andhra Pradesh, Assam, Bihar, and others.
- No preferential procurement policy for marginalized groups, but supports MSMEs; procurement from vulnerable groups is minimal due to industrial material needs.
- No intellectual property based on traditional knowledge owned or acquired; no related disputes or benefits shared.
- CSR beneficiaries: Over 1.94 million people, with 100% from vulnerable and marginalized groups across projects like skills training, education, and health initiatives.
- No consumer complaints received in areas like data privacy, advertising, or cybersecurity; no product recalls.
- Comprehensive cybersecurity and data privacy policies in place, including 24/7 monitoring and incident response plans.
- Independent assurance confirmed reliability of sustainability disclosures, with minor improvements needed in data consolidation for water, waste, and manhours.
- Unpaid dividends totaling ₹143.77 Crore are due for transfer to the Investor Education and Protection Fund (IEPF) across 10 dividend declarations from 2019 to 2025.
- During FY 2025-26, 341,070 equity shares with unpaid dividends for seven+ years were transferred to the IEPF Authority.
- Investors can register grievances via email at IGRC@Larsentoubro.com and use SCORES for dispute resolution if unsatisfied.
- The Annual General Meeting (AGM) will be held via VC/OAVM, facilitated by NSDL, with e-voting from June 1-4, 2026.
- Re-appointment of Mr. R. Shankar Raman as President and Whole-time Director - Finance from October 1, 2026, to September 30, 2028, with a monthly salary of ₹22.5 lakh.
- Re-appointment of Mr. Pramit Jhaveri as Independent Director for five years from April 1, 2027, to March 31, 2032.
- Appointment of Mr. Vijay Sankar as Independent Director for five years from May 27, 2026, to May 26, 2031.
- Ratification of remuneration for cost auditors M/s. R. Nanabhoy & Co. at ₹20 lakh plus taxes for FY 2026-27.
- Larsen & Toubro Limited reported total income of ₹161,038.62 crore for FY2025-26, an 8.68% increase from the previous year.
- Profit before tax and exceptional items was ₹16,262.95 crore, with profit after tax (excluding exceptional items) at ₹13,129.81 crore, up 26.30% year-on-year.
- The Board recommended a final dividend of ₹38 per equity share, totaling ₹5,227.40 crore, subject to shareholder approval.
- The company issued sustainability-linked bonds worth ₹500 crore, India's first such bonds, and raised ₹14,600 crore through commercial papers.
- Capital expenditure for the year was ₹2,241.73 crore, with gross property, plant, and equipment valued at ₹26,374.16 crore.
- Key leadership changes include the re-appointment of Mr. R. Shankar Raman as President & Whole-Time Director and the appointment of Mr. Vijay Sankar as an Independent Director.
- The company divested stakes in subsidiaries: Nabha Power Limited for ₹3,661 crore and L&T Metro Rail (Hyderabad) Limited for ₹1,461.47 crore.
- A scheme of arrangement was approved to transfer L&T's real estate business to L&T Realty Properties Limited, involving the issuance of 3.94 billion shares.
- The SuFin e-commerce business was transferred to subsidiary SuFin Limited for ₹42.9 crore to operate independently.
- Corporate governance highlights include compliance with regulatory requirements, a robust vigil mechanism, and no reported frauds by auditors.
- Proposal for ratification of remuneration of the Cost Auditor for FY2026-27 is placed before shareholders for approval in the upcoming AGM.
- Report of the Cost Auditors for FY2026 is under finalization and will be filed with the Ministry of Corporate Affairs.
- Acknowledgement of support from stakeholders including members, customers, employees, and partners.
- Energy conservation initiatives include installation of energy-efficient equipment, automation, natural lighting, and process redesign, leading to significant energy savings.
- Renewable energy adoption increased from 0.3% in FY25 to 4.1% in FY26, with solar installations totaling 326 kWp.
- Capital investment in energy conservation: Heavy Engineering spent ₹2.04 crore, Energy Hydrocarbon - Onshore invested ₹1.10 crore.
- Technology absorption efforts include AI-powered analytics, digital workforce tracking, and adoption of Industry 4.0 solutions.
- R&D expenditure totaled ₹177.73 crore (0.12% of turnover), with ₹2.43 crore capital and ₹175.29 crore recurring.
- Foreign exchange earnings: ₹35,977.69 crore earned, ₹4,088.60 crore saved/deemed exports, total ₹40,066.29 crore; used ₹21,060.01 crore.
- Corporate governance structure includes Board of Directors, Executive Committee, and Independent Company leadership, emphasizing transparency and accountability.
- Board composition: 1 Chairman & Managing Director, 5 Executive Directors, 1 Non-Executive Director, and 10 Independent Directors as of March 31, 2026.
- Audit Committee held 8 meetings in FY2026, chaired by Mr. P. R. Ramesh, with full attendance by members.
- Internal audit team includes Chartered Accountants, Certified Internal Auditors, and engineers; reports to Audit Committee.
- Nomination & Remuneration Committee (NRC) formed in 1999; held 5 meetings in FY26 with full attendance.
- Executive Directors' total remuneration for FY26: ₹330.91 crore; highest paid was Mr. S.N. Subrahmanyan at ₹120.84 crore.
- Non-Executive Directors' total remuneration: ₹7.47 crore; includes sitting fees and commission.
- Stakeholders' Relationship Committee resolved 415 of 447 investor complaints; 41 pending as of March 2026.
- CSR & Sustainability Committee focuses on education, health, water/sanitation, and skill development.
- Board Risk Management Committee oversees enterprise-wide risks, including cyber security and ESG.
- Directors spent average 31 hours on familiarization; cumulative time exceeded 100 hours.
- Whistleblower Policy in place since 2004; overseen by Audit Committee with zero-tolerance for misconduct.
- Statutory auditor fees: ₹10.1 crore for FY26; no material conflicts with directors or management reported.
- AGM held virtually in recent years; special resolutions included amendments to Articles of Association.
- Share price ranged from ₹2,965.30 to ₹4,440.00 on NSE in FY26; listed on BSE, NSE, and Luxembourg/London exchanges.
- Physical share transfer requests will not be processed; only demat form requests for transmission, transposition, duplicate issuance, and other services are accepted, except for transfers of securities purchased/sold before April 1, 2019, which can be relodged during a special window from February 5, 2026, to February 4, 2027.
- Dematerialization of physical shares is completed within 21 days of receipt.
- Shareholding distribution as of March 31, 2026: 94.76% of shareholders hold up to 500 shares, accounting for 6.82% of total shares; 0.19% hold 10001+ shares, representing 82.81% of total shares.
- Categories of shareholders include Financial Institutions (14.46%), Foreign Institutional Investors (18.58%), Mutual Funds (20.29%), and Others (25.96%) as of March 31, 2026.
- 93.07% of shares are held in dematerialized form in NSDL, 6.3% in CDSL, and 0.63% in physical form.
- Credit ratings remain stable: CRISIL AAA/Stable for debentures and bank loans, A1+ for commercial paper; similar ratings from ICRA, India Ratings, Fitch (BBB+ stable), and S&P (BBB+ stable).
- The company has manufacturing facilities in India (e.g., Bengaluru, Mumbai) and internationally (Oman, Saudi Arabia, USA).
- A securities dealing code prevents insider trading, with training sessions conducted and Mr. Subramanian Narayan as Compliance Officer.
- Stakeholder engagement includes external mechanisms like meetings and surveys, and internal platforms like employee surveys and grievance systems.
- CSR activities focus on education, health, water/sanitation, and skill development, with significant beneficiary outreach and positive impact reported in FY26.
- CSR initiatives improved menstrual hygiene for 86.5% of women and girls, enhancing dignity and school participation.
- Water projects like Groundwater Recharge Systems in Surat provided clean, non-saline water to communities and schools.
- Over 93% of beneficiaries confirmed proper maintenance of Water and Sanitation facilities.
- CSR programs reached 421,000+ beneficiaries across sanitation, water, hygiene, and waste management.
- 93.8% of beneficiaries reported improved health conditions through better access to quality healthcare.
- Skilling programs trained 37,000+ beneficiaries, with 73% employed or self-employed post-training.
- 74% of skilling beneficiaries reported increased household income, with monthly earnings of ₹15,000–18,000.
- CSR spending exceeded obligations: ₹164.09 crore required, but ₹189.85 crore spent (including administrative overheads).
- Capital assets created: 612 assets through CSR funds, details available on company website.
- Company reported strong financials: average net profit ₹8,789.5 crore, with 2% CSR obligation ₹175.79 crore.
- Auditor confirms proper books of account maintained by Larsen & Toubro Limited and its joint operations in India.
- Financial statements comply with Indian Accounting Standards (Ind AS) under Section 133 of the Companies Act.
- No directors disqualified as of March 31, 2026, based on written representations received.
- Internal financial controls are adequate and operating effectively, per separate audit report in Annexure A.
- Remuneration paid to directors complies with Section 197 and Schedule V of the Companies Act.
- Pending litigations disclosed in financial statements (Note 29), with provisions made for material foreseeable losses on long-term contracts (Note 50).
- No delays in transferring funds to Investor Education and Protection Fund for the year ended March 31, 2026.
- Management represents no funds were advanced or received for undisclosed lending or investment activities.
- Final dividend proposed for the year is subject to shareholder approval and complies with Section 123 of the Act.
- Company used accounting software with audit trail features throughout the year, with no tampering instances found.
- Total revenue from operations: ₹153,680.17 crore (2025-26), up from ₹142,509.01 crore (2024-25).
- Net profit after tax: ₹6,287.13 crore (2025-26), down from ₹10,870.72 crore (2024-25).
- Total assets: ₹208,138.24 crore (2026), increased from ₹186,416.35 crore (2025).
- Contingent liabilities include disputes over GST, excise, customs, and income tax, with amounts involved up to ₹3,074.99 crore.
- No defaults in loan repayments or interest payments to lenders during the year.
- Larsen & Toubro Limited reported a profit for the year ended March 31, 2026 of ₹6,287.13 crore, compared to ₹10,870.72 crore in the previous year.
- Total comprehensive income for the year was ₹7,255.65 crore, down from ₹11,129.97 crore in the prior year.
- Equity share capital increased slightly to ₹275.13 crore with 1,375,632,190 shares outstanding, up from ₹275.04 crore and 1,375,192,165 shares in the previous year.
- Other equity rose to ₹74,257.77 crore from ₹71,620.80 crore, driven by retained earnings growth to ₹49,347.93 crore.
- Dividend paid for the previous year amounted to ₹4,676.22 crore, an increase from ₹3,849.57 crore paid in the prior period.
- Net cash generated from operating activities was ₹21,927.95 crore, significantly higher than ₹12,703.05 crore in the previous year.
- Cash and cash equivalents at the end of the year stood at ₹6,152.25 crore, up from ₹3,583.55 crore.
- The company invested ₹2,241.73 crore in property, plant, and equipment, and reported net cash used in investing activities of ₹2,763.30 crore.
- Net cash used in financing activities was ₹16,701.10 crore, primarily due to repayments of non-current borrowings of ₹8,254.71 crore.
- The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) and approved by the Board of Directors on May 5, 2026.
- Trade receivables impairment is measured using a provision matrix based on historical credit loss experience and forward-looking information, as per Ind AS 109.
- Financial liabilities designated at fair value through profit or loss are measured at fair value; others are at amortised cost using the effective interest rate method.
- Hedging instruments are classified as fair value hedges, cash flow hedges, or hedges of net investments; hedge accounting stops if instruments expire or no longer qualify.
- Cash flow hedges: Spot element changes go to other comprehensive income and equity; forward element/time value changes are also in equity but reclassified differently.
- Compound financial instruments are split into liability and equity components; liability is measured at amortised cost, equity is not remeasured.
- Inventories are valued at lower of cost or net realisable value; cost includes conversion costs and overheads for work-in-progress and finished goods.
- Cash and bank balances exclude short-term investments with significant value change risk; restricted balances are included.
- Securities premium includes excess over face value from share issues and fair value of stock options; issue expenses for equity instruments are written off against it.
- Borrowing costs attributable to qualifying assets are capitalised; others are expensed. Costs include finance charges and exchange differences on foreign borrowings.
- Stock options granted to employees are measured at fair value at grant date and expensed over vesting period; dilutive effect is considered in diluted EPS.
- Foreign currency transactions use spot rates; exchange differences are recognised in profit or loss unless related to assets under construction or hedges.
- Segment reporting is based on components reviewed by management; revenue, expenses, and assets are allocated or directly identified per segment.
- Tax provisions use expected value or most likely amount methods; deferred tax is recognised on temporary differences at enacted tax rates.
- Provisions are recognised for present obligations with probable outflow and reliable estimate; contingent liabilities are disclosed if not probable or measurable.
- Commitments include future contractual expenditures like capital contracts, partly paid investments, and funding commitments to subsidiaries.
- Non-current assets held for sale are measured at lower of carrying amount and fair value less costs to sell; discontinued operations are major disposed lines.
- Property, plant, and equipment: Carrying value as of March 31, 2026, is ₹10,794.64 crore; additions were ₹1,883.10 crore; depreciation for the year was ₹1,631.60 crore.
- Capital work-in-progress as of March 31, 2026, is ₹1,439.81 crore, mostly in projects less than 1 year old (₹804.65 crore).
- Investment property: Carrying value as of March 31, 2026, is ₹1,579.10 crore; rental income for 2025-26 was ₹218.15 crore.
- Fair value of investment property as of March 31, 2026, is ₹5,284.98 crore, based on independent and internal valuations.
- Investment property under construction: Total value decreased from ₹565.82 crore (March 2025) to ₹553.53 crore (March 2026), with a shift towards newer projects (less than 1 year: ₹428.75 crore in 2026 vs. ₹275.73 crore in 2025).
- Goodwill: Remained stable at ₹121.86 crore, attributed to the Energy Hydrocarbon business, with no impairment recorded.
- Intangible assets: Total intangible assets (including under development) decreased from ₹149.93 crore (March 2025) to ₹149.93 crore (March 2026), with additions of ₹94.77 crore primarily in Specialised Softwares (₹51.96 crore) and Technical know-how (₹29.61 crore).
- Investments: Total investments decreased from ₹32,853.88 crore (March 2025) to ₹26,993.91 crore (March 2026), with significant holdings in subsidiaries (₹24,970.95 crore) and associates (₹1,292.81 crore).
- Quoted investments: Market value increased to ₹146,515.99 crore (March 2026) from ₹152,337.70 crore (March 2025), while book value rose slightly to ₹17,980.96 crore.
- Trade receivables: Gross trade receivables increased to ₹49,964.97 crore (March 2026) from ₹42,867.85 crore (March 2025), with allowances for expected credit loss at ₹4,634.67 crore.
- Inventory: Total inventory increased to ₹3,690.92 crore (March 2026) from ₹3,398.77 crore (March 2025), driven by property development work-in-progress (₹1,737.17 crore).
- Equity share capital: Issued and paid-up equity capital increased marginally to ₹275.13 crore (1,375.63 million shares) from ₹275.04 crore (1,375.19 million shares).
- Dividend: Final dividend of ₹38 per share recommended for FY 2025-26, totaling ₹5,227.40 crore, following a ₹34 per share payout (₹4,676.22 crore) for FY 2024-25.
- Borrowings: Non-current borrowings increased to ₹9,787.67 crore (March 2026) from ₹9,286.00 crore (March 2025), all unsecured redeemable debentures.
- Total non-current borrowings decreased to ₹9,787.67 crore as of March 31, 2026, from ₹9,286.00 crore in the previous year.
- Current maturities of long-term borrowings significantly reduced to ₹392.20 crore from ₹8,905.30 crore, indicating repayment of obligations.
- Trade payables increased to ₹47,615.76 crore, with a notable rise in amounts due to others, including supplier finance arrangements.
- Revenue from operations grew to ₹153,680.17 crore in FY 2025-26, up from ₹142,509.01 crore in the prior year.
- Order book expanded to ₹612,805.98 crore, with a majority expected to convert to revenue within the next 1-2 years.
- Contingent liabilities totaled ₹137,756.74 crore, including claims, tax appeals, and corporate guarantees.
- Employee benefits expense rose to ₹11,602.89 crore, reflecting increased salaries and contributions.
- Finance costs decreased to ₹1,675.42 crore from ₹2,195.46 crore, indicating lower interest expenses.
- Segment-wise, Infrastructure Projects contributed the highest revenue at ₹106,638.26 crore, followed by Energy Projects and Hi-Tech Manufacturing.
- Geographically, India accounted for ₹103,069.84 crore of revenue, while foreign operations, led by Saudi Arabia and Qatar, contributed ₹50,610.33 crore.
- Finance costs decreased to ₹1,521.76 crore in FY2025-26 from ₹2,070.62 crore in FY2024-25.
- Interest income increased to ₹1,835.94 crore in FY2025-26 from ₹1,368.61 crore in FY2024-25.
- Supplier Finance Arrangements (SFA) were entered into, with trade payables under SFA at ₹3,251.67 crore as of March 31, 2026.
- Current income tax expense was ₹2,914.18 crore in FY2025-26, up from ₹2,721.81 crore in FY2024-25.
- Deferred tax expense was a credit of ₹12.30 crore in FY2025-26 compared to a credit of ₹146.93 crore in FY2024-25.
- Total income tax expense reported in Profit or Loss was ₹2,854.09 crore in FY2025-26, up from ₹2,703.04 crore in FY2024-25.
- Effective tax rate increased to 31.22% in FY2025-26 from 19.91% in FY2024-25.
- Defined benefit obligations increased significantly, with gratuity plan obligations rising to ₹2,570.24 crore from ₹1,205.48 crore.
- Employee benefit expenses included a past service cost of ₹1,100.43 crore for gratuity in FY2025-26.
- Related party transactions included purchases from subsidiaries totaling ₹7,167.16 crore and joint ventures totaling ₹1,601.59 crore in FY2025-26.
- Disclosure of related party transactions as per Ind AS 24, covering subsidiaries, joint ventures, and associates for FY 2025-26.
- Total sale of goods/services to subsidiaries: ₹1,478.60 crore; major entities include L&T (East Asia) Sdn. Bhd. (₹332.13 crore) and L&T (Oman) LLC (₹257.74 crore).
- Investments in subsidiaries: ₹1,101.62 crore, with L&T Semiconductor Technologies Limited receiving ₹541.97 crore.
- Dividend received from subsidiaries: ₹3,367.92 crore, including LTM Limited (₹1,361.23 crore) and L&T Finance Limited (₹454.45 crore).
- Compensation paid to Key Management Personnel: ₹308.76 crore, with Mr. S.N. Subrahmanyan receiving ₹100.76 crore.
- Total inter-corporate borrowing taken from subsidiaries: ₹6,439.59 crore, with L&T Realty Properties Limited contributing ₹2,197.90 crore.
- Provision for bad debts: ₹77.13 crore, primarily from L&T Metro Rail (Hyderabad) Limited (₹78.69 crore).
- Guarantees given on behalf of subsidiaries: ₹6,018.38 crore, including L&T Arabia LLC (₹3,056.20 crore).
- Basic earnings per share: ₹45.71 for FY 2025-26, down from ₹79.06 in the previous year.
- Research and development expenditure: ₹174.37 crore recognized as expense, with capital expenditure of ₹2.24 crore on tangible assets.
- The company's hedge contracts impact the balance sheet until the hedged forecasted exposure (HPFE) becomes on-balance sheet, with potential timing mismatches affecting financial results.
- Foreign exchange risk is managed through forward and option contracts, with significant exposures in USD, Euro, JPY, and other currencies. Net exposure details are provided for major currencies.
- A Value-at-Risk (VAR) model is used to assess foreign currency risk, with an overnight VAR of ₹200.50 crore as of March 31, 2026.
- Interest rate risk primarily affects floating-rate debt, with floating rate borrowings at ₹244.71 crore as of March 31, 2026. Sensitivity analysis shows potential impacts from rate changes.
- Liquidity risk is managed through cash, marketable securities, and committed credit lines. Investments include debt funds, government securities, and equity funds, with sensitivity analysis provided.
- Credit risk is low due to customers including public sector enterprises. Provisions are made based on the Expected Credit Loss (ECL) model, with trade receivables written off amounting to ₹45.39 crore.
- Commodity price risk affects projects, with hedging used for metals like copper and aluminum. Details of outstanding commodity hedges are disclosed.
- Fair value hierarchy disclosures include Level 1, 2, and 3 assets and liabilities, with significant unobservable inputs for certain equity and preference shares.
- Lease arrangements include both lessor and lessee activities, with operating lease income of ₹252.05 crore and right-of-use assets detailed.
- Amounts due to Micro, Small, and Medium Enterprises (MSME) under the MSMED Act are disclosed, including principal, interest, and payments made.
- Total loans given to subsidiaries as of March 31, 2026, amounted to ₹2,431.78 crore, with major recipients including L&T Special Steels & Heavy Forgings (₹1,623.16 crore) and Nabha Power (₹548.39 crore).
- Corporate guarantees provided to subsidiaries and joint ventures totaled ₹119,722.49 crore as of March 31, 2026, with significant guarantees for Larsen & Toubro Arabia LLC (₹17,389.48 crore) and L&T Hydrocarbon Saudi Company LLC (₹46,385.96 crore).
- Debt equity ratio decreased by 48.2% to 0.16 in FY2026, primarily due to repayment of borrowings during the year.
- Return on equity ratio fell to 8.59% in FY2026 from 15.94% in FY2025, largely due to exceptional items recognized during the year.
- Exceptional items for FY2026 included an impairment provision of ₹6,013 crore for L&T Metro Rail (Hyderabad) Limited and an incremental impact of ₹1,108.73 crore from new labor codes.
- Corporate Social Responsibility (CSR) spending was ₹189.85 crore in FY2026, exceeding the required obligation of ₹164.09 crore.
- Auditors' remuneration decreased to ₹7.71 crore in FY2026 from ₹10.83 crore in the previous year.
- L&T Special Steels & Heavy Forgings had an overdue loan of ₹1,586.77 crore to L&T, overdue for more than 90 days as of March 31, 2026.
- Accounts payable to struck-off companies totaled ₹4.90 crore as of March 31, 2026, with minor balances across multiple entities.
- The company confirmed it did not engage in any undisclosed lending, investment, or guarantee arrangements with funding parties or intermediaries.
- Audit evidence obtained is sufficient and appropriate for the audit opinion.
- Key audit matters include revenue recognition for construction contracts under Ind AS 115, based on percentage of completion and cost estimates.
- Revenue recognition involves significant judgments on total estimated costs, variable considerations, and potential deviations in profits.
- Impairment of trade receivables and contract assets is assessed using Expected Credit Loss (ECL) models, involving management judgment on credit risks and recoverability.
- Revenue from fixed-price contracts in IT & Technology Services segments (LTM Limited and L&T Technology Services Limited) is recognized using percentage of completion, with high audit focus due to complexity and estimates.
- Allowance for Expected Credit Loss on retail loan assets in Financial Services segment (L&T Finance Limited) involves significant judgment in classification, PD, LGD, and economic overlays.
- IT systems and controls in Financial Services segment are a key audit matter due to complexity, high automation, and impact on financial reporting.
- Audit relied on reports from other auditors for 35 joint operations, 74 subsidiaries, 2 associates, and 7 joint ventures, with some unaudited financial information considered immaterial.
- Consolidated financial statements comply with Ind AS, and internal financial controls are adequate and effective as per separate report.
- No material misstatements found in other information like Management Discussion and Analysis, and no issues with dividend payments or fund transfers.
- Audit firm M S K A & Associates LLP issued an unqualified opinion on Larsen & Toubro Limited's internal financial controls as of March 31, 2026, confirming they are adequate and operating effectively.
- The audit covered the Holding Company, its subsidiaries, associates, joint ventures, and joint operations incorporated in India, based on criteria from the ICAI Guidance Note.
- Total assets increased to ₹452,549.88 crore in FY2026 from ₹379,524.10 crore in FY2025, with significant growth in current assets and non-current assets.
- Revenue from operations rose to ₹285,874.36 crore in FY2026 from ₹255,734.45 crore in FY2025, reflecting strong business performance.
- Net profit after tax was ₹18,953.88 crore for FY2026, compared to ₹17,673.33 crore in FY2025, showing an improvement in profitability.
- Earnings per share (EPS) increased to ₹116.93 (basic) and ₹116.88 (diluted) in FY2026 from ₹109.36 and ₹109.28 in FY2025, respectively.
- Equity attributable to owners grew to ₹109,289.80 crore in FY2026 from ₹97,655.60 crore in FY2025, supported by retained earnings and other equity components.
- Cash flow from operating activities was positive at ₹16,740.97 crore in FY2026, though lower than ₹9,151.35 crore in FY2025, indicating healthy cash generation.
- Key management personnel include S. N. Subrahmanyan (Chairman & Managing Director) and R. Shankar Raman (CFO), with the audit signed by Vishal Vilas Divadkar.
- Revenue recognition for fixed-price contracts uses the percentage of completion method, based on costs incurred plus a proportionate margin.
- Variable consideration, including claims, is included in transaction price if recovery is highly probable and estimable.
- Contract assets ('Unbilled revenue') and liabilities ('Excess of billing over revenue') are recognized based on cost-plus-profit versus billing comparisons.
- Impairment of financial assets uses expected credit loss models, with specific approaches for trade receivables and financial services.
- Leases are accounted for as right-of-use assets and liabilities, with payments recognized based on lease type (finance or operating).
- Employee benefits include defined contribution plans (expensed when incurred) and defined benefit plans (actuarially valued).
- Foreign currency transactions use spot rates for translation, with differences recognized in profit or loss or asset costs, as applicable.
- Inventory is valued at lower of cost or net realizable value, with specific methods for raw materials, work-in-progress, and finished goods.
- Borrowing costs directly attributable to qualifying assets are capitalized until the asset is ready for use.
- Segment reporting aligns with internal management reviews, with revenue and expenses allocated based on direct identifiability or allocation methods.
- Segment assets and liabilities include directly identifiable items, with borrowings included for Financial Services and Development Projects segments due to finance costs.
- Taxes on income are based on taxable income or book profits, with deferred tax recognized on temporary differences and reviewed for recoverability.
- Provisions are recognized only when there is a present obligation, probable outflow of resources, and a reliable estimate can be made.
- Commitments include future contractual expenditures like capital contracts, uncalled liabilities, and funding commitments to associates and joint ventures.
- Discontinued operations are classified as held for sale if recovery is through sale, measured at lower of carrying amount or fair value less costs to sell.
- Cash flow statement uses indirect method, adjusting for non-cash items and changes in working capital.
- Key sources of estimation include useful life of assets, credit loss allowances, retirement benefits, and tax provisions.
- Property, plant, and equipment total book value is ₹33,196.78 crore, with additions of ₹3,651.34 crore during the year.
- Investment property has a book value of ₹1,120.34 crore, with rental income of ₹196.89 crore.
- Goodwill is ₹8,481.54 crore, with impairment testing performed at cash-generating unit level.
- Intangible assets include fare collection rights (₹16,689.20 crore) and customer contracts (₹3,768.80 crore), with amortization based on useful life.
- Loans for financing activities total ₹74,995.72 crore, with allowances for expected credit losses.
- Inventories are ₹9,530.93 crore, including property development projects at ₹6,863.97 crore.
- Current financial assets investments total ₹59,524.86 crore, primarily in government securities, debentures, and mutual funds.
- Trade receivables increased to ₹60,461 crore as of March 31, 2026, from ₹53,714 crore in the previous year.
- Cash and cash equivalents rose to ₹15,391 crore in FY2026, up from ₹12,187 crore in FY2025.
- Equity share capital remained stable at ₹275 crore, with minor changes due to employee stock option exercises.
- Major shareholders include L&T Employees Trust (14.44%) and Life Insurance Corporation of India (12.38%).
- Total borrowings decreased slightly to ₹97,914 crore in FY2026 from ₹93,656 crore in FY2025.
- Contingent liabilities totaled ₹29,116 crore, including claims not acknowledged as debts and tax matters under appeal.
- Employee stock option expenses were ₹115 crore in FY2026, down from ₹223 crore in the previous year.
- Retained earnings grew to ₹100,764 crore, reflecting strong profitability and retained income.
- Revenue from operations increased to ₹285,874 crore in FY 2025-26 from ₹255,734 crore in FY 2024-25.
- Construction and project-related activities contributed ₹196,921 crore to revenue, showing growth from the previous year.
- Software development products and services revenue rose to ₹41,885 crore, up from ₹37,618 crore.
- Other income totaled ₹5,761 crore, with significant contributions from interest income (₹3,162 crore) and gains on sale of investments (₹1,181 crore).
- Employee benefits expense increased to ₹52,187 crore, with salaries and wages accounting for ₹46,441 crore.
- Finance costs decreased to ₹2,849 crore from ₹3,334 crore in the prior year.
- Depreciation, amortization, and impairment expenses amounted to ₹4,365 crore.
- The company has capital commitments of ₹1,777 crore for property, plant, and equipment, and ₹2,517 crore in undrawn funding commitments.
- L&T has numerous subsidiaries, including L&T Finance Limited (66% owned) and LTM Limited (68.53% owned), with material non-controlling interests.
- Joint ventures like L&T-MHI Power Boilers reported a loss of ₹338 crore, while associates such as E2E Networks Limited had a loss of ₹50 crore.
- Larsen & Toubro acquired the remaining 40% stake in L&T Offshore Marine Private Limited (LTOMPL) on January 21, 2026, making it a wholly owned subsidiary. The acquisition included net assets valued at ₹303.58 crore, with a cash consideration of ₹122.39 crore.
- L&T Finance Limited acquired the gold loan business of Paul Merchants Finance Private Limited on June 9, 2025, for ₹711.93 crore, resulting in goodwill of ₹182.39 crore. The loan book acquired was ₹1,334.83 crore, with ₹1,261.56 crore collected during the year.
- L&T Semiconductor Technologies Limited acquired the Power Module Packaging Division of General Device Solutions on March 31, 2026, for ₹35.58 crore, including assets like property, plant, equipment, and intangible assets.
- The Group classified assets/disposal groups worth ₹25,470.20 crore as held for sale, including L&T Metro Rail (Hyderabad) Limited, Nabha Power Limited, and L&T Technology Services Limited's Smart World & Communication business.
- Consolidated revenue for 2025-26 was ₹285,874.36 crore, with segment revenue led by Infrastructure Projects (₹133,909.95 crore), IT & Technology Services (₹53,497.23 crore), and Energy Projects (₹54,864.85 crore).
- Profit after tax for 2025-26 was ₹19,159.40 crore, with profit attributable to owners at ₹16,083.99 crore. Segment profit before interest and tax was highest in IT & Technology Services (₹8,633.94 crore) and Infrastructure Projects (₹7,759.98 crore).
- An exceptional item of ₹1,722.44 crore was recognized due to the impact of new Labour Codes, primarily affecting gratuity provisions.
- The order book as of March 31, 2026, stood at ₹786,874.92 crore, with significant portions expected to convert to revenue within 1-2 years.
- Geographically, revenue was split between India (₹132,136.15 crore) and foreign countries (₹153,738.21 crore), with major contributions from the United States, Saudi Arabia, and the UAE.
- Supplier finance arrangements were utilized, with outstanding trade payables under these arrangements totaling ₹3,305.75 crore as of March 31, 2026.
- Profit before tax increased to ₹25,975.81 crore in 2025-26 from ₹23,578.79 crore in 2024-25.
- Effective tax rate rose to 26.24% in 2025-26 from 24.99% in 2024-25, with tax expense at ₹6,816.41 crore.
- Total unrecognized tax losses (including L&T Metro Rail) amounted to ₹17,200.11 crore as of March 31, 2026, slightly down from ₹17,783.80 crore the previous year.
- Deferred tax assets decreased to ₹7,567.91 crore in 2025-26 from ₹7,957.58 crore in 2024-25, while deferred tax liabilities were ₹4,237.82 crore.
- Global minimum tax (Pillar Two) incurred a current tax expense of ₹87.18 crore, with no material financial impact expected overall.
- Employee benefit expenses included defined contribution plans costing ₹2,035.87 crore and defined benefit obligations totaling ₹17,239.56 crore across various plans.
- Government grants recognized amounted to ₹437.59 crore, including export incentives and R&D tax credits.
- Related party transactions included purchases from joint ventures of ₹1,604.57 crore and sales to joint ventures of ₹12.77 crore in 2025-26.
- Compensation for Key Management Personnel totaled ₹309.81 crore in 2025-26, up from ₹223.58 crore in the prior year.
- Accounts receivable from joint ventures totaled ₹43.51 crore, with L&T - MHI Power Boilers Private Limited accounting for ₹27.50 crore.
- Accounts payable to joint ventures amounted to ₹1,668.25 crore, led by L&T - MHI Power Boilers Private Limited at ₹1,132.30 crore.
- Loans and advances recoverable from joint ventures were ₹1,878.72 crore, with L&T - MHI Power Boilers Private Limited contributing ₹1,499.40 crore.
- Key Management Personnel balances included Mr. S. N. Subrahmanyan with ₹74.80 crore in advances from customers.
- Basic EPS for 2025-26 was ₹116.93, up from ₹109.36 in 2024-25, while diluted EPS was ₹116.88 compared to ₹109.28.
- Provisions for warranties, taxes, litigation, contracts, and onerous contracts totaled ₹1,997.54 crore as of March 31, 2026.
- Research and development expenses were ₹488.79 crore, with capital expenditure on intangible assets at ₹132.91 crore.
- Foreign exchange risk exposure showed a net receivable of ₹10,561.69 crore in US Dollar, with derivatives used for hedging.
- Interest rate risk: A 0.50% increase in INR rates could reduce profit by ₹15.19 crore; a decrease could increase it by the same amount.
- Investments included ₹18,247.74 crore in mutual funds and units, with fair value hierarchy Level 1 at ₹18,225.88 crore.
- Level 3 contingent consideration liabilities increased from ₹10.22 crore to ₹183.19 crore in FY25, then decreased to ₹39.11 crore in FY26 due to settlements.
- Total non-derivative liabilities were ₹212,081.78 crore as of March 31, 2026, with borrowings accounting for ₹130,181.03 crore.
- Derivative liabilities totaled ₹5,601.86 crore, primarily from forward contracts.
- Hedging activities included significant currency hedges: US Dollar hedges for receivables (₹52,973.38 crore) and payables (₹36,007.71 crore).
- Commodity hedges were notable for copper (₹3,576.74 crore) and aluminium (₹2,189.87 crore).
- Cash flow hedging reserve showed a balance of ₹404.61 crore, while cost of hedging reserve was ₹108.13 crore.
- Assets hypothecated as collateral totaled ₹50,014.77 crore (current) and ₹69,625.87 crore (non-current).
- Finance lease income was ₹913.03 crore, with net investment in finance leases at ₹3.53 crore after impairment.
- Operating lease income was ₹202.84 crore, with undiscounted future lease receivables of ₹554.72 crore.
- L&T Special Steels and Heavy Forgings Private Limited had an overdue loan of ₹1,586.77 crore to the parent company as of March 31, 2026.
- LTSSHF became a wholly owned subsidiary of the Parent Company in February 2025 after terminating its joint venture with NPCIL.
- LTSSHF has aligned its business strategies with the Parent Company and is implementing measures to drive growth and improve profitability.
- The Parent Company has undertaken business and financial restructuring to strengthen LTSSHF's ability to service its debt and interest obligations in the coming years.
- Wholly owned subsidiaries BPPPL and CPPPL are developing commercial properties as Investment Property, with full construction work subcontracted.
- Internal Audit for BPPPL and CPPPL is planned for FY27 upon takeover from contractors and commencement of commercial operations.
- Miscellaneous expenses include a contribution of ₹100 crore to a Trust in the current year, down from ₹300 crore in the previous year.
- There are outstanding balances with 129 struck-off companies, primarily as accounts payables, totaling ₹4 crore as of March 31, 2026 (₹4.98 crore in 2025).
- The Group confirms it has not received funds from or advanced funds to any parties (other than subsidiaries) with arrangements to lend, invest, or provide guarantees on behalf of ultimate beneficiaries.
- No amounts are due to be credited to the Investor Education & Protection Fund as of March 31, 2026.