Larsen & Toubro Limited

Strong momentum in orders; record inflows - Q3 FY’26 order inflows: INR 1,356 bn (+17% YoY) — the highest ever quarterly inflows. - Projects & Manufacturing (P&M) orders: INR 1,164 bn (+18% YoY); domestic INR 620 bn (+30%), international INR 544 bn (+7%). - Near-term prospects pipeline: INR 5.92 tn (+7% YoY), led by CarbonLite Solutions and Precision Engineering & Systems. - Order book: INR 7.33 tn (+30% YoY); ~92% from Infrastructure + Energy, with ~75% of international book from the Middle East. - *Investor takeaway:* demand looks broad-based and pipeline/order book strength should support execution/revenue visibility.

Profitability & cash flow: good operating trend but reported PAT hit by one-time labour code impact - Group revenue (Q3): INR 714 bn (+10% YoY); international revenue 54%. - EBITDA margin (group, excl. other income): 10.4% (up from 9.7%); P&M margin: 8.1% (up ~50 bps from 7.6%). - Recurring PAT: INR 44 bn (+31% YoY) — strong improvement. - Reported PAT: INR 32 bn (-4% YoY) due to one-time impact of ~INR 11.9 bn from the new Labour Codes. - Working capital improved sharply: NWC/revenue 8.2% (from 12.7% a year earlier); collections (ex-financial services) INR 642 bn; cash flow from operations (ex-financial services) INR 79 bn (vs INR 21 bn last year quarter). - *Investor takeaway:* underlying profitability/efficiency + collections are improving; the headline PAT decline is largely accounting/one-time.

Guidance maintained; outlook improving into Q4 - Order inflows guidance: confident to exceed 10% FY’26 growth (based on 9M + healthy pipeline). - Revenue guidance: 15% full-year growth retained (Q4 expected to be the busiest execution period); current 9M revenue growth around ~12%. - Margins guidance: P&M EBITDA 8.5% target for FY’26; 9M at 7.9% (in line with plan). - Working capital guidance revised: earlier 12% by Mar’26, now expecting ~10% closing due to stronger collections/contract terms. - *Investor takeaway:* company is leaning on Q4 execution ramp-up; margin path assumes completion of some stressed Hydrocarbon projects.