India’s infrastructure bellwether Larsen & Toubro (L&T) wrapped up FY25 on a solid note, reporting its highest-ever net profit and a record order book. Despite global headwinds, the company continues to power ahead—thanks to strong project execution and a strategic global footprint.
🚀 Q4 FY25: Performance Highlights
- Net profit jumped 25% year-on-year to ₹5,497 crore—comfortably beating street estimates.
- Revenue grew 10.9% YoY to ₹74,392 crore, slightly below expectations but still solid considering project phasing and global volatility.
- EBITDA came in at ₹8,203 crore, up 13.4%, with margins improving to 11%—a sign of operational discipline.
- L&T announced a final dividend of ₹34 per share, compared to ₹28 last year, rewarding shareholders for the strong performance.
📦 Record Order Book: The Growth Engine
One of the biggest takeaways from this quarter was the massive surge in new orders:
- ₹89,613 crore in new orders during Q4 alone, marking a 24% YoY increase.
- Of this, 70% came from international markets, highlighting L&T’s strong global positioning, particularly in the Middle East.
- For the full year FY25, the company bagged ₹3,56,631 crore in orders—up 18% YoY, with 58% from outside India.
As a result, the company now has a record-high order book, with large-scale infrastructure, hydrocarbon, and energy transition projects forming the backbone.
🧠 Management Insights: Focused Growth Ahead
S.N. Subrahmanyan, L&T’s CMD, summed up the year with optimism:
“We achieved the highest-ever yearly order inflows in the company’s history… The strong revenue growth underpins our journey toward operational excellence through innovation and digitalisation.”
He also highlighted the improving investment climate in India—driven by government-led infra spend and renewed private sector interest in energy and real estate.
📊 FY26 Outlook: Staying Bullish, With Caution
L&T isn’t slowing down. For FY26, the company is targeting:
- 15% revenue growth
- Core margin improvement to 8.3%
- 10% rise in fresh orders, with a massive ₹19 lakh crore pipeline (₹7 lakh crore in India, ₹12 lakh crore internationally)
While the management remains optimistic, they’re also being cautiously realistic, factoring in global risks like geopolitical tensions and supply chain volatility. That said, L&T’s execution track record and diversified global exposure keep it well-shielded.
🔍 Key Strategic Updates
- The board approved long-term borrowings up to ₹12,000 crore to fund growth plans.
- Subramanian Sarma was appointed Deputy MD & President, taking charge of Hydrocarbon, Power, and Green Manufacturing—indicating L&T’s push into clean and sustainable energy solutions.
💡 EquityPulse Take
L&T’s Q4 FY25 performance was a clear beat, not just on earnings but also on its execution strength and global diversification. With a robust order pipeline, healthy cash flows, and strong leadership at the helm, L&T appears well-positioned to benefit from India’s infrastructure boom and global energy transition.
For long-term investors, L&T continues to offer a compelling mix of stability and growth, backed by strong fundamentals and a forward-looking strategy.
