Company Overview

Larsen & Toubro Limited (L&T) is an Indian multinational conglomerate engaged in Engineering, Procurement, and Construction (EPC) Projects, Hi-Tech Manufacturing, and Services. Operating in over 50 countries worldwide, L&T is a major technology, engineering, construction, manufacturing, and financial services conglomerate with extensive global operations. The company is primarily involved in providing EPC solutions in key sectors such as Infrastructure, Hydrocarbon, Power, Process Industries, Defence, Information Technology, and Financial Services, serving both domestic and international markets.

Market Position and Valuation

Larsen & Toubro Ltd commands a significant market capitalization of ₹4,92,733 crore as of July 2025, positioning it as one of India's largest and most influential engineering and construction companies. The company has a long-standing presence on the NSE, having been listed for over 34 years. L&T has demonstrated strong long-term growth, marked by a Compound Annual Growth Rate (CAGR) of 18.09% over the past 34 years. This sustained growth indicates robust performance, with an illustrative investment of ₹10,000 potentially growing to ₹33.65 Lakh over this period.

Financial Performance and Recent Results

Larsen & Toubro has consistently reported strong financial results, showcasing growth across its diverse business segments.

#### Q3 FY25 Results (December 2024)

Larsen & Toubro reported a consolidated net profit of ₹3,359 crore for the third quarter (Q3) of the financial year 2024-25 (FY25). This represents a substantial 13.9% year-on-year (YoY) growth from ₹2,947.36 crore in the same period last year. The company's consolidated revenue for the quarter ended December 31, 2024, stood at ₹64,668 crore, an increase of 17.3% YoY from ₹55,127.82 crore. This robust revenue growth was primarily driven by a strong order book and accelerated execution momentum across L&T's Projects & Manufacturing (P&M) businesses.

#### Q4 FY25 Results (March 2025)

For the quarter ended March 31, 2025 (Q4FY25), Larsen & Toubro Ltd announced a consolidated net profit of ₹5,497 crore, marking a significant 25% YoY jump from ₹4,396 crore in Q4FY24. Consolidated revenue from operations grew by 10.9% annually to ₹74,392.3 crore, up from ₹67,078.7 crore in Q4FY24.

#### Quarterly Performance Highlights:

- Q3 FY25: Net Profit ₹3,359 crore (13.9% YoY growth), Revenue ₹64,668 crore (17.3% YoY growth).

- Q4 FY25: Net Profit ₹5,497 crore (25% YoY growth), Revenue ₹74,392 crore (10.9% YoY growth).

- Q2 FY25: Net Profit ₹3,395 crore (5.4% YoY growth), Revenue ₹61,555 crore (20% YoY growth).

#### Annual Performance Overview:

- FY24: Annual Net Profit ₹15,569.72 crore on Total Income of ₹2,21,112.90 crore.

Order Book and Business Outlook

As of December 31, 2024, L&T's consolidated order book reached an all-time high of ₹5,64,223 crore, reflecting a 19% increase compared to March 2024. International orders constitute a significant 42% of this substantial backlog. In Q3 FY25 alone, L&T secured orders worth ₹1,16,036 crore, a remarkable 53% YoY growth. Chairman and Managing Director S.N. Subrahmanyan highlighted this achievement, stating, "This quarter has ended on a strong note for us. We have achieved the highest ever quarterly order inflow in the Company's history, consequently our order book is at a record high." This strong order pipeline provides excellent revenue visibility for the coming quarters.

International Operations

L&T's global presence is a key growth driver. International revenues for Q3 FY25 amounted to ₹32,764 crore, accounting for 51% of total revenues. This performance reflects improved execution in the international Projects & Manufacturing (P&M) portfolio. For the nine months ended December 31, 2024, consolidated revenues reached ₹181,342 crore, an 18% YoY growth. International revenues during this period totaled ₹91,070 crore, representing 50% of the total consolidated revenues.

Corporate Governance and Sustainability

Larsen & Toubro maintains robust corporate governance standards and a strong commitment to sustainability. Fitch affirmed L&T's BBB+ credit rating with a stable outlook on June 30, 2025. Furthermore, CRISIL assigned L&T an 'ESG 62' rating, categorized as 'Strong,' on June 24, 2025. Sustainability is deeply integrated into L&T's vision and growth plans, with ambitious Water and Carbon Neutrality targets set ahead of global benchmarks. L&T was a pioneer in India's engineering and construction sector for publicly disclosing its sustainability performance.

Dividend Policy

The Board of Directors has recommended a final dividend of ₹34 per equity share for the financial year 2024-25. This recommendation underscores the company's consistent commitment to returning value to its shareholders while ensuring strong cash flows are retained to fuel ongoing growth investments and strategic initiatives.

Investment Outlook

Larsen & Toubro is exceptionally well-positioned to capitalize on India's ongoing infrastructure development boom and its established strength in international markets. The company's record order book offers substantial revenue visibility for upcoming quarters. Its diversified business model, spanning engineering, manufacturing, and financial services, provides multiple avenues for sustained growth. L&T's strategic focus on sustainability and digital transformation further positions it favourably for emerging opportunities in green energy, smart infrastructure, and technology-driven projects, making it a compelling investment prospect.