L&T net declines 4% on impact of labour codes

MISSING ANALYST ESTIMATES by a wide margin, construction and engineering major Larsen & Toubro (L&T) posted a 4.3% decline in net profit in the third quarter of FY26 at ₹3,215 crore compared with $3,359 crore in the year-ago period. Analysts estimated a profit of $4,494 crore.

- RAGHAVENDRA KAMATH

The profit came down because of an exceptional item of 1,191 crore pertaining to provisions for gratuity liability of its workforce under the new labour codes. Without the exceptional item, PAT was at ₹4,400 crore — a 31% year-on-year (yo-y) growth — the company said.

The company got orders worth ₹1,35,581 crore, reflecting a yo-y growth of 17% for the third quarter of FY26.The company posted the highest-ever quarterly order inflows, driven by strong domestic momentum. Domestic order inflows stood at ₹68,800 crore, about 51% of the total inflows. International orders stood at ₹66,848 crore, accounting for 49% to the total. In Q3FY25, international inflows accounted for 54% of the total and domestic orders 46%.