L&T Q2 FY27: PAT jumps 33% to ₹5,202 Cr on record orders; EBITDA margin dips to 8.7%

L&T's consolidated PAT (attributable to owners) rose 32.5% YoY to ₹5,202 Cr for Q2 FY27, comfortably ahead of the ~21% YoY profit growth analysts had penciled in pre-result, while consolidated revenue of ₹78,750 Cr grew 15.8% YoY and 15.9% QoQ — a sequential acceleration, since Q1 FY27 revenue (₹67,942 Cr) was itself nearly flat versus the year-ago quarter. Revenue growth came in roughly in line with the ~16% consensus estimate. Basic EPS rose to ₹37.81 from ₹28.54 a year ago. Measured against management's own medium-term aspiration flagged on the last concall — 8-10% revenue CAGR with single-digit margin improvement — L&T is tracking well ahead on growth but behind on the margin leg: EBITDA margin compressed to 8.7% from 10.0% a year ago and 9.0% last quarter, the opposite of the stated direction.

The disconnect between a 33% PAT jump and a near-flat EBITDA print (₹6,845 Cr, +1% YoY) is the quarter's real story: operating profit barely grew while bottom-line surged, driven by a 38% YoY drop in corporate finance costs (₹473 Cr vs ₹763 Cr) and a 33% jump in the Financial Services segment's PBT (₹1,319 Cr vs ₹989 Cr) on loan-book growth and stable asset quality. Segment margins were mixed: Manufacturing & Products expanded to a 15.7% EBITDA margin (from 13.5%) on a better execution mix, while Infrastructure & Utilities (5.7% vs 6.2%) and Energy-Conventional (7.4% vs 8.2%) both compressed on cost pressure and a higher share of early-stage orders — confirming the margin softness sits in the core EPC businesses, not in a one-off.

The stock went into the print at ₹3,665.1, down 5% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters.

Order momentum was the standout: the Group booked a record ₹1,47,665 Cr of orders, up 28% YoY (63% international), taking the consolidated order book to an all-time-high ₹8.5 lakh crore (+15% over March'26), aided by wins flagged through the quarter — Dhaka Metro Line 1, large orders in New Delhi and Andhra Pradesh, and initial work on the Tashkent airport project. Basis divergence is sharp this quarter: standalone PAT of ₹3,370 Cr compares with a standalone LOSS of ₹3,591 Cr a year ago, but that prior-year loss was driven by a one-off ₹5,413 Cr exceptional item that never appears in the consolidated accounts — so the standalone 'turnaround' overstates the underlying trend versus the steadier 32.5% consolidated PAT growth. Development Projects, now comprising only the held-for-sale Hyderabad Metro (divestment pushed to December 31, 2026) and the nascent Green Energy business following the Nabha Power divestment on June 25, 2026, posted a ₹16 Cr EBIT loss versus an ₹87 Cr profit a year ago — immaterial to the Group P&L but a reminder the segment base is no longer comparable.