Slides
Page 1
29th July 2025 Earnings Call Presentation Q1 / FY26
Page 2
2 2 This presentation contains certain forward looking statements concerning L&T’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions with respect to investments, fiscal deficits, regulations, etc., interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company. Disclaimer L&T’s Precision Engineering and Systems unit handed over the wing assemblies for Light Combat Aircraft (LCA) Mk1A to Hindustan Aeronautics Limited 2
Page 3
Thane Creek Bridge 3 Key Highlights 3
Page 4
4 FY26 begins on a Strong N ote ₹ 945 bn Order Inflow 33% y-o-y ₹ 637 bn Revenue 16% y-o-y ₹ 6128 bn Order Book 25% y-o-y. 380 bps y-o-y 10.1% Net Working Capital 30% y-o-y ₹ 36 bn Profit After Tax 230 bps y-o-y 17% Return on Equity Won the largest Green H2 supply tender in India Listed India’s first ESG bond on NSE 4
Page 5
Key Financial Indicators 5 (Amount in ₹ bn) Q1 FY25 Particulars Q1 FY26 (y-o-y) 709 Order Inflow 945 33% 4909 Order Book 6128 25% 551 Revenue 637 16% 10.2% EBITDA (%) 9.9% 28 Reported PAT 36 30% Q1 FY25 Particulars Q1 FY26 13.9% Net Working Capital 10.1% 14.7% ROE (TTM) (%) 17.0% Q1 FY25 Particulars Q1 FY26 -14 Cash flow from Operations (excl Financial Services business) 62
Page 6
6 Group Performance Analysis 1.5 GWp Al Khafah Solar PV Project, Saudi Arabia 6
Page 7
Q1 FY26 Order Inflow/Order Book 7 Order Inflow Order Book Domestic International 3301 2827 3052 1857 30-Jun-24 30-Jun-25 4909 6128 3052 1857 (Amount in ₹ bn) • Robust order inflows in Q1 FY26 driven by Infrastructure and CarbonLite Solutions businesses • International orders constitute 46% of the Order Book • Strong prospect pipeline of ~ Rs 15 trn for remaining nine months 383 458 326 487 33% 709 945 25% Q1 FY25 Q1 FY26
Page 8
Group P&L Construct – Revenue to EBITDA * Manufacturing, Construction and Operating expenses **Finance cost of financial services business and finance lease activity 8 • Strong execution momentum in Energy (47% yoy) and Hi-Tech Manufacturing (75% yoy) businesses drives revenue growth • MCO expense increase reflective of activity levels and revenue mix (higher share of P&M revenue) • Staff costs driven by resource augmentation and salary hikes across businesses • Decline in SG&A primarily due to higher FX gains • EBITDA margin decline primarily reflective of change in revenue mix ₹ Billion Q1 FY25 Q1 FY26 % Var Revenue 551.2 636.8 16% International Rev. 48% 52% MCO Exp.* 341.8 402.3 18% Fin. Charge Opex** 14.3 17.1 19% Staff Costs 110.4 126.4 14% Sales & Admin. 28.5 27.9 -2% Total Opex 495.0 573.6 16% EBITDA 56.2 63.2 13% EBITDA % 10.2% 9.9% 8
Page 9
Group P&L Construct – EBITDA to PAT • Decline in finance cost primarily attributable to lower rate and average borrowing levels • Other income reflective of level of treasury investments & improved yields during the quarter • Strong PAT growth reflective of improved activity levels and efficient treasury management 9 ₹ Billion Q1 FY25 Q1 FY26 % Var EBITDA 56.2 63.2 13% Finance Cost (8.6) (7.8) -9% Depreciation (10.0) (10.3) 4% Other Income 9.2 13.6 47% Tax Expense (12.4) (15.3) 24% JV/Associates PAT Share 0.0 (0.1) Non-controlling Int. (6.6) (7.0) 6% Reported PAT 27.9 36.2 30%
Page 10
10 Segment Performance Analysis VGO Reactor for an overseas client 10
Page 11
Buildings & Factories Development Projects Segment Composition Buildings & Factories Others Realty Development Projects Buildings & Factories Transportation Infra Heavy Civil Water Power T&D Infrastructure Projects Minerals & Metals CarbonLite Solutions Green and Clean Energy EPC Hydrocarbon Energy Projects Hi - Tech Manufacturing Heavy Engineering Precision Engineering & Systems Electrolyser Manufacturing Financial Services Retail Lending Wholesale Lending* Smart World & Communications* Industrial Machinery & Products Others Realty Development Projects Green Hydrogen BOO Hyderabad Metro Nabha Power Development Projects Energy Projects Hi - Tech Manufacturing LTTS Digital Platforms Data Centers LTIMindtree IT & TS Semiconductor Design *residual portion Renewables 11
Page 12
12 Order Inflow Composition – Q1 FY26 Q1 FY26 ₹ 945 Bn GeographySegment Infrastructure, 44% Energy, 33% Hi-Tech Manufacturing, 2% Others, 2% Services, 19% India, 48% Middle East, 38% USA & Europe, 12% ROW, 2%
Page 13
13 Order Book as on 30-Jun-2025 India, 54% Middle East, 37% ROW, 9% Infrastructure, 61% Energy, 30% Hi-Tech Manufacturing, 6% Others, 3% Segment Geography Q1 FY26 ₹ 6128 Bn
Page 14
14 Revenue Composition – Q1 FY26 Q1 FY26 ₹ 637 Bn GeographySegment Infrastructure, 45% Energy, 20% Hi-Tech Manufacturing, 5% Others, 2% Services, 28% India, 48% Middle East, 32% USA & Europe, 17% ROW, 3%
Page 15
15 • Strong international ordering momentum drives order inflow* • Prospect pipeline of ₹ 8 trillion for the remaining nine months • Revenue and margin reflective of stage of execution across sub-segments Infrastructure Projects Segment DomesticDomestic International 269.1 287.6 (Amount in ₹ bn) Q1 FY25 Net Revenue: 7% 171.6 116.0 Q1 FY26 176.7 92.4 *Refer Segment Annexure for details EBITDA Margin5.8% 5.7%
Page 16
16 Energy Projects Segment 85.0 124.7 (Amount in ₹ bn) 27.4 57.6 Q1 FY25 Net Revenue: 47% EBITDA Margin Q1 FY26 *Refer Annexures for Business wise break-up of OI, Revenue and EBITDA * DomesticDomestic InternationalEBITDA Margin8.7% 7.3% DomesticDomestic International • Hydrocarbon order inflow benefits from multiple onshore & offshore packages; receipt of multiple BTG packages buoys CarbonLite Solutions (CLS) order book • Execution ramp up across projects drives Hydrocarbon revenue growth; revenue in CLS reflective of early stages of order book • Segment EBITDA margin primarily impacted by higher share of revenue from competitively priced jobs in Hydrocarbon 36.7 88.0
Page 17
17 Hi-Tech Manufacturing Segment 18.5 32.3 (Amount in ₹ bn) 14.3 4.2 Q1 FY25 Net Revenue: 75% EBITDA Margin Q1 FY26 *Refer Annexures for Business wise break-up of OI, Revenue and EBITDA * The Precision Engineering & Systems business does not manufacture any explosives nor ammunition of any kind, including cluster munitions or anti-personnel landmines or nuclear weapons or components for such munitions. The business also does not customise any delivery systems for such munitions • Heavy Engineering order inflow impacted by deferrals; decline in PES order inflow on a high base • Ramp up in execution across Heavy Engineering & PES drives strong revenue growth • Lower margin in PES reflective of major jobs in early stages whereas operational efficiencies aids margin improvement in Heavy Engineering DomesticDomestic InternationalEBITDA Margin17.4% 15.1% DomesticDomestic International 24.3 8.0
Page 18
18 DomesticDomestic International DomesticLTIMindtree LTTS 115.1 126.2 (Amount in ₹ bn) 90.9 24.0 Q1 FY25 Net Revenue: 10% EBITDA Margin20.0% 19.5% Q1 FY26 * • LTIMindtree revenue growth led by Manufacturing & Resources and BFSI segments • LTTS revenue growth primarily led by Tech and Sustainability verticals • Segment margin variation due to costs incurred towards newly incubated businesses Revenues of Digital Platforms, Semiconductor Design business and Data Center are not significant IT & Technology Services Segment 97.8 28.2 EBITDA Margin20.0%
Page 19
19 Financial Services Segment • Q1 witnessed strong retail disbursements (up 18% y-o-y) • Provision Coverage Ratio (PCR) @ 71% • RoA @ 2.37% for Q1 FY26; CRAR @ 20.68% L&T Finance received International Ratings at par with India’s Sovereign Rating Rating Agency Long Term / Short Term Rating of L&T Finance S&P Global Ratings (S&P) BBB-/ Positive / A-3 Fitch Ratings (Fitch) BBB-/ Stable ₹ Bn Q1 FY25 Q1 FY26 % Var Income from Operations 36.6 39.7 8% PAT 6.9 7.0 2% PAT (Net of NCI) accruing to the group 4.5 4.6 3% Book 887.2 1023.1 15% Retail Book % 95% 98%
Page 20
20 DomesticDomestic International DomesticNabha Hyd Metro 13.3 12.4 (Amount in ₹ bn) 11.0 2.2 Q1 FY25 Net Revenue: 6% EBITDA Margin17.0% 17.8% Q1 FY26 *Development Projects Segment 10.1 2.3 * • Segment includes Power Development (Nabha Power) and Hyderabad Metro • HMRL: Higher average fares post fare hikes leads to improved revenue and margin • Nabha: Lower PLF (83% in CY vs 90% in PY) impacts revenue and margin *Refer Annexures for Business wise break-up of Revenue and EBITDA
Page 21
21 DomesticDomestic International DomesticDomestic International 13.7 13.9 (Amount in ₹ bn) 11.4 2.3 Q1 FY25 Net Revenue: 1% EBITDA Margin23.4% 32.9% Q1 FY26 Others Segment 11.8 2.1 * *Refer Annexures for Business wise break-up of OI, Revenue and EBITDA • Segment majorly comprises Realty and Industrial Machinery & Products • Segment revenue growth primarily driven by the increased handover of residential units in the Realty business whereas lower machinery sales impacts Industrial Machinery & Products performance • Higher EBITDA contribution from Realty and a favorable sales mix in Industrial Machinery & Products aids margin improvement
Page 22
22 L&T – Strategic Blend of Foundational & Future Ready Sectors Small Modular Reactors Desalination Solar PV Carbon Capture AI led Services Semiconductor Design Data Center Thermal Power Hydrocarbon Mass Rapid Transit Systems Expressways & Bridges Water Treatment Ferrous & Non-Ferrous Plants Green Hydrogen Ecosystem Pumped Storage Airports Power T&D Buildings & Factories Climate Resistant Infrastructure Nuclear Offshore Wind
Page 23
Thank You Investor Relations: P Ramakrishnan (P .Ramakrishnan@larsentoubro.com) Harish Barai (Harish.Barai@larsentoubro.com) Vivek Laha (Vivek.Laha@larsentoubro.com) Shalmali Dange (Shalmali.Dange@larsentoubro.com) 23
Page 24
24 Balance Sheet ₹ Billion Mar-25 Jun-25 Incr / (Decr) Equity & Reserves 977 977 1 Non Controlling Interest 177 178 1 Borrowings - Financial Services 920 936 15 Development Projects 156 165 9 Others 219 206 -12 Sources of Funds 2450 2462 13 Fixed Assets (incl ROU assets) 194 203 9 Intangible Assets & Investment Property 273 277 4 Loans towards Financing Activities 919 964 45 Finance lease receivable 52 51 -1 Net Non-Current Assets 200 201 1 Current Investments, Cash & Cash Equivalents 663 620 -43 Net Current Assets 148 145 -3 Assets held for Sale (net) 2 2 0 Application of Funds 2450 2462 13 Gross Debt / Equity Ratio 1.12 1.13 Net Debt / Equity Ratio 0.60 0.64
Page 25
25 Q1 FY26 Cash Flow – As Reported ₹ Billion Q1 FY25 Q1 FY26 Operating Profit 57.1 63.7 Changes in Working Capital [(Inc)/Dec] (48.5) 18.1 Direct Taxes (Paid) / Refund [Net] (13.5) (13.8) Net Cash from / (used in) Operations before financing activities (5.0) 68.0 Loan towards financing activities (29.3) (33.7) Net Cash from / (used in) Operations (A) (34.3) 34.4 Net Investment in Fixed Assets (incl. Intangible & Investment Property) (5.2) (13.2) Net (Purchase) / Sale of Long Term investments & Business Undertaking 9.3 (13.7) Net (Purchase) / Sale of Current investments (18.1) 36.1 Loans/Deposits made with JV/Associate Cos. / Third Party - 0.0 Interest & Dividend Received 5.7 7.5 Net Cash from /(used in) Investing Activities (B) (8.2) 16.7 Issue of Share Capital / Payment of Dividend to NCI (8.4) (7.3) Net Borrowings 48.1 4.3 Interest & Dividend paid (17.3) (61.2) Net Cash from / (used in) Financing Activities (C) 22.4 (64.1) Net (Dec) / Inc in Cash & Bank (A+B+C) (20.1) (13.0)
Page 26
26 Memorandum Q1FY26 Cash Flow excl Financial Services ₹ Billion Q1 FY25 Q1 FY26 Operating Profit 48.9 56.6 Changes in Working Capital [(Inc)/Dec] (52.1) 17.1 Direct Taxes (Paid) / Refund [Net] (11.5) (12.3) Loan towards financing activities 1.1 0.5 Net Cash from / (used in) Operations (A) (13.6) 62.0 Net Investment in Fixed Assets (incl. Intangible & Investment Property) (4.9) (12.9) Net (Purchase) / Sale of Long Term investments & Business Undertaking 6.1 (11.1) Net (Purchase) / Sale of Current Investments (5.4) (1.2) Loans/Deposits made with JV/Associate Cos. / Third Party - 0.0 Interest & Dividend Received 8.8 9.8 Net Cash from /(used in) Investing Activities (B) 4.7 (15.3) Issue of Share Capital / Payment of Dividend to NCI (4.0) (5.2) Net Borrowings 10.3 1.0 Interest & Dividend paid (17.3) (61.2) Net Cash from / (used in) Financing Activities (C) (11.1) (65.5) Net (Dec) / Inc in Cash & Bank (A+B+C) (20.0) (18.8)
Page 27
Segment Details – Q1 FY26 *Finance cost and tax provisions of parent company are reflected under Corporate **For Financial Services EBITDA is PBDT ₹ 100 crore = ₹ 1 bn #includes eliminations 27 Net Revenue EBITDA EBITDA % Net Revenue EBITDA EBITDA % Infrastructure Projects Segment 26908 1553 5.8% 28757 1628 5.7% Energy Projects Segment 8495 741 8.7% 12470 915 7.3% Hi-Tech Manufacturing Segment 1845 321 17.4% 3227 486 15.1% Others Segment 1375 321 23.4% 1393 458 32.9% Total (Projects & Manufacturing) 38624 2936 7.6% 45847 3488 7.6% IT & Technology Services Segment 11505 2300 20.0% 12619 2462 19.5% Financial Services Segment 3664 951 25.9% 3971 984 24.8% Developmental Projects Segment 1327 225 17.0% 1242 221 17.8% Total (Services & Concessions) 16496 3477 21.1% 17832 3667 20.6% Total 55120 6413 11.6% 63679 7154 11.2% Q1 FY25 Q1 FY26 Segment (₹ Crore) Particulars IT&TS Financial Services** Dev. Projects Projects & Manufacturing* Corporate# Total EBITDA 2462 984 221 3488 520 7674 Depreciation (416) (41) (78) (519) 21 (1033) Segment Result 2045 943 143 2969 541 6641 Finance Cost & Tax Expense (672) (242) (243) (190) (969) (2316) Non-controlling interest (464) (236) - (2) 2 (701) Share in profit/(loss) of JV and associate (12) - - 5 - (7) PAT 897 464 (99) 2782 (427) 3617 EBITDA to PAT (Q1 FY26)
Page 28
28 Breakup of Energy and Hi-Tech Manufacturing Segment Hi-Tech Manufacturing Segment Energy Segment ₹ Bn Q1 FY25 Q1 FY26 Y-o-Y Energy Segment 87.9 314.2 >100% Hydrocarbon 85.4 84.1 -1% CarbonLite Solutions 2.5 230.1 >100% Energy Segment 85.0 124.7 47% Hydrocarbon 79.7 119.8 50% CarbonLite Solutions 5.2 4.9 -6% Energy Segment 8.7% 7.3% -140 bps Hydrocarbon 8.4% 7.3% -110 bps CarbonLite Solutions 14.8% 10.9% -390 bps Order Inflow Revenue EBITDA Margin ₹ Bn Q1 FY25 Q1 FY26 Y-o-Y Hi-Tech Manufacturing 36.8 18.9 -49% Heavy Engineering 6.4 5.7 -10% Precision Engineering & Systems 30.4 13.2 -57% Hi-Tech Manufacturing 18.5 32.3 75% Heavy Engineering 7.5 11.6 55% Precision Engineering & Systems 11.0 20.7 89% Hi-Tech Manufacturing 17.4% 15.1% -230 bps Heavy Engineering 18.6% 24.3% 580 bps Precision Engineering & Systems 17.1% 10.1% -700 bps Order Inflow Revenue EBITDA Margin
Page 29
29 Breakup of Development Projects and Others Segment Development Projects Others Segment * Industrial Machinery and Products and residual portion of Smart World & Communications ₹ Bn Q1 FY25 Q1 FY26 Y-o-Y Development Projects 13.3 12.4 -6% Hyderabad Metro 2.2 2.3 4% Nabha Power 11.0 10.1 -9% Development Projects 17.0% 17.8% 80 bps Hyderabad Metro 45.0% 48.0% 300 bps Nabha Power 11.3% 10.8% -50 bps Revenue EBITDA Margin ₹ Bn Q1 FY25 Q1 FY26 Y-o-Y Others Segment 19.2 22.9 19% Realty 10.3 9.9 -4% Other Businesses* 8.9 13.0 47% Others Segment 13.7 13.9 1% Realty 2.6 4.6 77% Other Businesses* 11.2 9.4 -16% Others Segment 23.4% 32.9% 950 bps Realty 56.6% 48.8% -780 bps Other Businesses* 15.7% 25.1% 940 bps Revenue EBITDA Margin Order Inflow
Page 30
30 Order Inflow and Order Book Details (Amount in ₹ crore) Order Inflow Order Book Q1 FY25 % Int Q1 FY26 % Int 30-Jun-24 % Int 30-Jun-25 % Int Infrastructure Projects 40053 49% 41024 69% 324879 28% 370390 42% Energy Projects 8792 22% 31420 24% 117724 76% 186401 65% Hi-Tech Manufacturing 3677 8% 1889 52% 33765 7% 39162 12% Others 1918 5% 2288 5% 14512 9% 16808 8% Projects & Manufacturing 54440 40% 76621 48% 490881 38% 612761 46% IT & Technology Services 11505 92% 12619 92% Financial Services 3664 - 3971 - Development Projects 1327 - 1242 - Services 16496 64% 17832 64% Total 70936 46% 94453 51%
Page 31
31 Share in Profit/(Loss) of JVs/Associates ** Other JVs/Associates of Hi-Tech Manufacturing and IT&TS Segment ₹ Bn Q1 FY25 Q1 FY26 L&T CarbonLite Solutions JVs (0.05) 0.11 L&T Hydrocarbon JVs 0.10 (0.06) Others** (0.00) (0.13) Total 0.05 (0.07)