L&T posts record orders as West Asia conflict squeezes its margins

what happened

India's infrastructure group Larsen & Toubro booked new orders worth Rs.1.48 trillion in the September quarter, more than a fourth above a year earlier. Its consolidated order book reached a record Rs.8.5 trillion, and nearly two-thirds of the business came from overseas. Revenue rose 16% to Rs.78,750 crore and profit grew by a third to Rs.4,878 crore.

EBITDA, however, was flat at Rs.6,845 crore and the margin narrowed 1.3 percentage points to 8.7%. The company blamed higher input costs and shipping delays tied to the conflict. Management expects some of these costs to be passed on to clients under contracts, though with a lag, so part of the lost margin could return in later quarters. Weak state finances in India also slowed work in its water segment.

why it matters

L&T is often watched as a bellwether for India's economy because much of its revenue depends on public and private infrastructure spending. The record order book supports revenue expectations, while margin pressure and inflation risks show that profitability will hinge on how quickly costs are recovered. The shares closed 0.19% lower on the BSE, while the Sensex was broadly flat.

market impact

L&T shares: record orders support the stock, margin squeeze weighs on it

• ↔Larsen & Toubro shares mixed — record order book lifts sentiment while cost-driven margin erosion weighs

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