Larsen & Toubro Q3 PAT Drops 4.2% To ₹3,215 Crore On ₹1,191 Crore Labour Code Provision, Order Book Surges 30%

New Delhi: Infrastructure major Larsen & Toubro (L&T) on Wednesday reported a 4.2 per cent drop in consolidated profit after tax at Rs 3,215 crore in the December quarter due to one-time provision for employee benefits related to new labour codes. The company posted a consolidated profit after tax (PAT) of Rs 3,359 crore in the year-ago period, L&T said in a filing to the BS

The total consolidated PAT for the quarter includes a one-time material provision of Rs 1,191 crore towards employee benefits arising from the implementation of the new labour codes, which has been classified under exceptional items, it said. However, the consolidated revenue from operations in the October-December period rose by 10 per cent to Rs 71,450 crore, over Rs 64,668 crore in the year-ago period, the filing said.

"The Company for the quarter ended December 31, 2025, reported consolidated revenues of Rs 71,450 crore, a y-o-y growth of 10 per cent, driven by steady execution progress across the various businesses within the projects and manufacturing portfolio," the company said. Total expenses of the company during the quarter rose to Rs 65,729.76 crore from Rs 60,302.62 crore in the year-ago period.

As of December 31, 2025, the Group's consolidated order book reached Rs 7,33,161 crore -- a 30 per cent increase from December 2024 -- with international orders making up 49 per cent of the overall order book. In a post-earnings media briefing, Larsen and Toubro's Chief Financial Officer R Shankar Raman said that the company is well-positioned to exceed its guidance on order inflow. "I just want to mention here that the company will exceed the order inflow guidance of 10 per cent that it had given at the beginning of the year. By what order of magnitude? Possibly when we finish the year, we'll be able to tell you a little more precisely," he said.

So far as revenue guidance and margin guidance are concerned, I think the company is continuing to pursue its targets for the year. "And we do believe, normally, as you would have noticed, quarter four is a large quarter for us. And we do believe that we should pursue these guidances, and there's nothing on the table now to suggest the need for any revision," he explained. He further said that ending the year with the strong order book will be a very good thing for the company because it secures the revenue flow of the company for the next couple of years.

With regard to the company divesting its entire stake in the Hyderabad Metro Rail project to the Telangana government, he said that the discussions are progressing with the state government to complete the proposed divestment and "we do hope that we should be able to complete this during the course of the current year". Looking ahead, he said that the company is optimistic that pro-growth momentum will be maintained in the ecosystem through sustained capital expenditure and expects additional policy thrust to strengthen domestic manufacturing and fiscal incentives to support the deepening of India's digital and AI ecosystem.

"As we scale up, we remain committed to deliver a technology-led growth and creating long-term value for our stakeholders," the company's Chairman and Managing Director, S N Subrahmanyan, said. Larsen & Toubro is a USD 30-billion Indian multinational engaged in engineering, procurement and construction projects, hi-tech manufacturing and services, operating across multiple geographies.

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