Service sector to remain key growth engine: L&T

Larsen & Toubro (L&T) said India’s service sector and digital economy, which are relatively less exposed to disruptions in the Middle East, are expected to remain key growth engines.

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Momentum is likely to be sustained by continued expansion in fintech, cloud technologies, AI-enabled services, and the rise of Global Capability Centers (GCCs), the company said.

As India enters FY 2026-27, the Country’s GDP growth is projected to remain among the fastest-growing major economies in the world. India’s strong macroeconomic fundamentals and policy buffers offer some protection from external headwinds, the company said.

The Indian economy demonstrated resilience in FY 2025-26. The global environment remains challenging characterised by geopolitical matters resulting in disrupted trade conditions. The Country’s GDP growth is supported by sustained domestic demand and public capital expenditure. Private sector investments also have improved, it added.

L&T said it remains focused on maximising shareholder value by driving operational excellence through AI & digital initiatives to enhance cost competitiveness, maintaining working capital discipline, prudent capital allocation, and ensuring effective and profitable execution of its robust order book.

The company reported a consolidated net profit of Rs 5,326 crore in the fourth quarter, reflecting a decline of 3 per cent.

The year‑on‑year decline in Consolidated PAT is primarily attributable to an exceptional gain of Rs 475 crore in the previous year, it said.

L&T’s fourth quarter consolidated revenue grew 11 per cent to Rs 82,762 crore when compared to last year, while International revenues stood at Rs 43,747 crore, contributing 53 per cent of its total revenues.

The Group’s consolidated order book as on 31 March 2026, stood at an all-time high of Rs 740,327 crore, reflecting a 28 per cent growth over March 2025. International orders constituted 52 per cent of the overall order book.

The total Consolidated net profit for FY2026 stood at Rs 16,084 crore includes a one-time material provision of Rs 1,155 crore towards employee benefits arising from the implementation of the new labour codes which has been classified under Exceptional Item, the company said.

“The year concluded on a strong note, supported by good financial performance across segments. Order inflow for the year exceeded a record Rs 4 lakh crore – a clear reflection of our strategy, built on a strong domestic base complemented by a significant international presence, enabling the Company to exploit global opportunities,” S N Subrahmanyan, Chairman and Managing Director, L&T, said in a statement.

“We embark on another 5-year journey of Lakshya’31 to make the organisation future ready through accelerated adoption of AI & digital technologies and investments in data centers, green energy, industrial electronics & semiconductor technologies”, he said.

“Over the past years, we have strengthened our leadership position through timely execution, operational excellence, and a commitment to innovation. Our growing international presence underscores our ability to compete on a global scale. Our well-diversified portfolio ensures resilience and positions us to capture both, near-term and long-term growth opportunities. This approach demonstrates the Company’s readiness to navigate an increasingly complex business landscape,” Subrahmanyan added.

The company declared a dividend of Rs 38 a share.

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