Larsen & Toubro Limited reported that its Hi-Tech Manufacturing and Energy segments were key contributors to group revenue growth in the second quarter of Financial Year 2026, supported by robust execution and operational efficiency improvements. The company’s consolidated revenue for the quarter stood at INR 680 billion, up 10 percent year-on-year, with international operations accounting for 56 percent of total income.
The Hi-Tech Manufacturing segment, which primarily comprises Precision Engineering Systems and Heavy Engineering, registered a strong performance despite lower order inflows due to order deferrals in both businesses. The segment revenue stood at approximately INR 28 billion, marking a 33 percent year-on-year increase driven by robust execution momentum across both divisions. Operational efficiencies aided margin improvement in Heavy Engineering, while lower margins in Precision Engineering reflected the larger share of early-stage jobs and costs incurred on development projects.
According to the company’s earnings conference call held on 29 October 2025, strong execution momentum in the Energy and Hi-Tech Manufacturing segments offset subdued activity in Infrastructure. Within the Projects & Manufacturing portfolio, revenues rose 10 percent to INR 490 billion, while margins improved from 7.6 percent to 7.8 percent over the same period last year. The Projects & Manufacturing order book had a balanced geographic mix, with 51 percent of the order book coming from domestic markets and 49 percent from outside India.
As of September 2025, the order book for the Hi-Tech Manufacturing segment stood at INR 391 billion, with the Precision Engineering division accounting for INR 328 billion and the Heavy Engineering division at INR 62 billion. The near-term order prospects pipeline totalled INR 315 billion, including INR 251 billion from Precision Engineering and INR 64 billion from Heavy Engineering. This compares with INR 160 billion in order prospects a year earlier, indicating a near-doubling of business opportunities in the segment.
“The strong execution momentum across both Precision Engineering and Heavy Engineering drove the growth in Hi-Tech Manufacturing revenues,” said P. Ramakrishnan, Head of Investor Relations at Larsen & Toubro Limited.
The company also highlighted progress in the Advanced Medium Combat Aircraft (AMCA) programme, where it has partnered with Bharat Electronics Limited. “The Aeronautical Development Agency is likely to shortlist eligible bidders for the AMCA programme this quarter. The L&T–Bharat Electronics joint venture aims to build the prototype airframe, fixtures, system integration and flight certification,” said Ramakrishnan. He added that prototype delivery and test flights are expected toward Financial Year 2028–29, with serial production anticipated later in the decade.
Deputy Managing Director and President Subramanian Sarma said the company’s manufacturing capabilities were aligned with emerging opportunities in defence and advanced engineering. “We have established ourselves as a major player able to access multibillion-dollar projects, and our ability to continue building a strong order pipeline has substantially increased,” said Sarma.
L&T maintained its full-year Financial Year 2026 revenue growth guidance of 15 percent, supported by execution ramp-up in the second half. The company expects to achieve an 8.5 percent EBITDA margin for its Projects & Manufacturing businesses by year-end.
Larsen & Toubro Limited is an Indian multinational engaged in engineering, construction, manufacturing, and technology services, operating across infrastructure, energy, heavy engineering, and defence sectors.
