Larsen & Toubro Rides Infrastructure Wave, Posts Record Q2 Orders Despite Global Headwinds

Indian engineering and construction giant Larsen & Toubro (L&T) just smashed records in Q2 FY27, reporting its highest-ever quarterly order inflow of INR 1.48 trillion, a whopping 28% jump year-on-year. This surge, far exceeding expectations, underscores L&T crucial role in India's infrastructure boom and its growing global footprint, even as geopolitical tensions in key markets present challenges. The company also posted a robust 33% increase in Profit After Tax to INR 5,202 crore, signaling strong operational momentum. The impressive performance comes amidst significant government-led infrastructure pushes in India and a strategic expansion into international markets, particularly the Middle East and Bangladesh. Key wins include major transit infrastructure projects like the Dhaka Metro Line 1, large power transmission deals across India and Saudi Arabia, and significant domestic government contracts for public spaces. However, the ongoing geopolitical headwinds in West Asia have put pressure on EBITDA margin, which dipped to 8.7% due to increased logistics costs and execution challenges, despite L&T affirming the safety of its personnel and projects in the region. Looking ahead, L&T massive order book, now standing at INR 8.54 trillion, provides solid revenue visibility for several years, backing its ambitious 'Lakshya 2026' strategy to scale operations and venture into futuristic segments like green energy and advanced manufacturing. While the company maintains a positive outlook, investors will be closely watching how L&T navigates persistent supply chain disruptions and global cost inflation to restore its profit margins in the coming quarters. This quarter's results clearly show L&T ability to capitalize on domestic demand while skillfully managing its diverse global commitments.