📝 Introduction
Larsen & Toubro (L&T), India’s engineering and construction giant, reported strong performance for Q4 FY25 with a 25% YoY surge in net profit, backed by robust revenue growth and sustained order inflows. The company’s quarterly numbers reflect its operational strength and resilience across infrastructure and turnkey segments, supported by its expanding global footprint and execution capabilities.
💰 Financial Highlights
| Metric | Q4 FY25 | Q3 FY25 | Q4 FY24 | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Revenue | ₹74,392 Cr | ₹64,668 Cr | ₹67,079 Cr | 15% | 11% |
| Expenses | ₹64,516 Cr | ₹56,770 Cr | ₹58,426 Cr | 14% | 10% |
| Operating Profit (EBIT) | ₹9,876 Cr | ₹7,898 Cr | ₹8,653 Cr | 25% | 14% |
| PBT | ₹8,014 Cr | ₹5,333 Cr | ₹6,422 Cr | 50% | 25% |
| Net Profit | ₹6,156 Cr | ₹3,974 Cr | ₹5,013 Cr | 55% | 23% |
Trend: Strong upward momentum in profitability and revenues driven by execution efficiency and higher infrastructure orders.
🏦 Dividend Announcement
L&T announced a final dividend of ₹28 per share for FY25, rewarding shareholders for a year of strong financial performance and record order wins.
- Dividend Type: Final
- Dividend per Share: ₹28
- Record Date: [To be confirmed in AGM Notice]
- Total Dividend FY25: [Add interim if applicable]
📉 Key Financial Ratios
| Ratio | Q4 FY25 | Q3 FY25 | Q4 FY24 | QoQ Trend | YoY Trend |
|---|---|---|---|---|---|
| Operating Margin (OPM) | 13% | 12% | 13% | 1% | Flat |
| Net Profit Margin | 8.30% | 6.10% | 7.50% | 2.20% | 0.80% |
| EPS (₹) | 39.97 | 24.43 | 31.98 | 64% | 25% |
Trend: Margins and profitability ratios show sustained improvement indicating healthy operational performance.
🏢 Peer Comparison
| Company | CMP (₹) | Market Cap (₹ Cr) | P/E | P/B | ROE % | ROCE % | 52W High | 52W Low |
|---|---|---|---|---|---|---|---|---|
| L&T | 3602 | 4,95,376.25 | 33.64 | 5.08 | 16.02 | 14.03 | 3963.5 | 2965.3 |
| Techno Electric Engg | 1259.25 | 14,645.05 | 45.61 | 4.16 | 13.12 | 16.53 | 1824.95 | 785.15 |
| ACME Solar | 241.7 | 14,624.93 | 54.86 | 3.26 | 7.5 | 8.4 | 292.4 | 167.55 |
| Reliance Infra | 280.55 | 11,113.46 | 673.21 | 0.89 | -11.6 | 7.38 | 351 | 143.7 |
| Engineers India | 192.15 | 10,799.64 | 26.02 | 4.55 | 20.8 | 22.21 | 304 | 142.15 |
| Power Mech Projects | 2938.4 | 9,290.09 | 33.67 | 4.72 | 15.87 | 23.79 | 3725 | 1698.85 |
| Va Tech Wabag | 1432.85 | 8,910.95 | 35.45 | 4.53 | 13.82 | 19.75 | 1944 | 820 |
🧩 Strategic Developments
- Order Inflows: L&T secured orders worth ₹1.39 lakh crore in Q4, taking the full-year order inflow to ₹3.12 lakh crore.
- Order Book: Reached a record ₹4.75 lakh crore, up 20% YoY.
- International Orders: Accounted for 37% of the total, reflecting diversification and global strategy.
- Capex Plan: Continued investment in digital transformation and manufacturing expansion.
- Segment Outlook: Infra, Hydrocarbon, and Hi-Tech manufacturing expected to lead growth.
Source: Company Press Release, Analyst Reports
✅ Positives & Negatives
✔️ Positives This Quarter
- 25% YoY rise in Net Profit.
- Record-high order book of ₹4.75 lakh crore.
- Strong growth in international orders (37% share).
- Improving EPS and net profit margins.
- Positive commentary from management on future infrastructure pipeline.
❌ Negatives / Challenges This Quarter
- Margins remained flat YoY despite revenue growth.
- Slightly increased expenses impacting cost structure.
- No update yet on large-ticket overseas projects finalization.
📉 Market Reaction & Street View
- Stock Movement: L&T stock saw a positive uptick post-results, closing up ~2% on result day.
- Brokerage Views:
- Motilal Oswal: Maintains BUY; TP ₹4000 (source: MoneyControl)
- ICICI Securities: Positive outlook citing robust order pipeline.
- Jefferies: Upgraded FY26 earnings estimates by 8%, citing improved execution.
🔮 Final Outlook
L&T has delivered another strong quarter, with a solid financial performance, robust order inflows, and strategic global expansion. The company’s outlook for FY26 remains optimistic backed by government infrastructure push and sustained execution excellence. With healthy margins, high ROE, and robust cash flows, L&T continues to be a long-term compounder in the capital goods space.
🔗 External Links
For detailed financials and official updates, visit: L&T Official Website
⚠️ Disclaimer
This summary is based on publicly available information from official filings, press releases, and financial news sources. It is provided for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Readers are advised to conduct their own research or consult with a qualified financial advisor before making any investment decisions.