Larsen & Toubro Limited

Q3 FY26 performance: strong growth in orders and cash/work-cap but PAT hit by one-off - Order inflows: INR 1,356 bn, +17% YoY (highest ever quarterly order inflows). - Projects & Manufacturing (P&M): INR 1,164 bn, +18% YoY; domestic INR 620 bn (+30%), international INR 544 bn (+7%). - Revenue: INR 714 bn, +10% YoY; international revenue 54% of total. - Margins: Group EBITDA margin (ex other income) 10.4%, up from 9.7% (improved operational efficiencies). - P&M EBITDA margin 8.1% vs 7.6% prior year (~+50 bps). - Profitability: Recurring PAT INR 44 bn, +31% YoY; reported PAT INR 32 bn, -4% YoY due to one-time impact of INR 11.9 bn from Labour Codes provisions. - Working capital/cash: NWC to sales improved to 8.2% (from 12.7% in Dec’24), driven by better collections; cash from operations (ex Fin. Svcs) INR 79 bn vs INR 21 bn in Q3 FY25.

Guidance retained/updated: revenue growth confidence, margins target, working-cap target revised - Order inflows: expects exceeding 10% FY26 guidance (9M strong growth ~30% YoY; confidence supported by near-term prospects pipeline). - Revenue: retains 15% full-year FY26 revenue growth despite 9M revenue growth only ~12% YoY (expects Q4 execution ramp-up to drive the gap). - Margins: maintains P&M EBITDA margin target 8.5% for FY26 (9M P&M EBITDA 7.9%, “in line” with path to target). - Working capital: revised outlook—previously 12% NWC/sales by March’26; now expects ~10% due to improved collection intensity and contractual terms (already 8.2% as of Dec’25).

Pipeline & order book: very strong near-term visibility; composition mix improving (more private sector) - Prospects pipeline (near term): INR 5.92 tn, up 7% YoY (vs INR 5.51 tn last year). - Growth led by CarbonLite Solutions and Precision Engineering & Systems. - Pipeline mix: Infrastructure INR 4.02 tn (flat vs prior year level), Hydrocarbon INR 1.26 tn, CarbonLite INR 0.40 tn, Hi-Tech Manufacturing INR 0.42 tn. - Order book: INR 7.33 tn, +30% YoY. - 92% from Infrastructure + Energy. - Geography: 51% domestic / 49% international. - Private sector share increased meaningfully: 21% (Mar’25) → 36% (Dec’25); supports demand resilience. - International exposure: ~75% of international order book from the Middle East; 10% of order book funded by bilateral/multilateral agencies.