L&T Q2 profit up 33% on healthy order inflow despite Iran war

What happened

Larsen & Toubro reported a 33% rise in quarterly profit to 52.02 billion rupees from 39.26 billion rupees a year earlier, helped by healthy order inflow and a recovery in Middle East business despite the ongoing regional war.

Confirmed

Global impact / market context

Bigger order inflows of 1.48 trillion rupees, with 63% from outside India, give L&T more future work to convert into revenue, which supports sales and profit for a company widely watched as a gauge of India's infrastructure activity.

Analyst inference

Revenue rose 16% to 787.5 billion rupees, with 58% from international sales, showing overseas projects now drive much of L&T's growth. Its infrastructure and utilities segment, the largest, grew just 6%, so other businesses carried more of the increase.

Analyst inference

What to watch

1. L&T expects revenue from its defence technology business, which makes drones and unmanned systems, to triple over the next five years as it expands capacity to capture growing opportunities in India's defence sector. Confirmed
2. Watch whether L&T actually adds the manufacturing capacity needed for that defence expansion, since the tripling target depends on building facilities and winning orders before it can show up in revenue. Proposed
3. Watch infrastructure and utilities growth, which was only 6%, and international revenue at 58% of sales; slower overseas execution or Middle East disruption could weaken future order conversion into revenue and profit. Analyst inference

Evidence

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