L&T Q4 PAT Jumps 25% YoY; FY25 Order Inflows Hit Record ₹3.57 Lakh Cr, Dividend at ₹34/Share

Engineering, construction, and infrastructure conglomerate Larsen & Toubro (L&T) has reported a strong financial performance for the fourth quarter and the full financial year ended March 31, 2025. The company announced its earnings on May 8, revealing significant growth in both profit and revenue, alongside a final dividend recommendation. The company’s stock closed marginally declining by 0.28% to ₹3,312.00.

Strong Finish to the Fiscal Year

For the quarter under review, Q4 FY25, L&T's consolidated profit after tax (PAT) saw a substantial 25% year-on-year (YoY) jump, reaching ₹5,497 crore, compared to ₹4,396 crore in Q4 FY24. Revenue from operations also increased by 11% YoY, rising to ₹74,392 crore from ₹67,079 crore in the corresponding quarter of the previous year. The company's EBITDA grew by 13% YoY to ₹8,203 crore in Q4 FY25, with the EBITDA margin improving slightly to 11% from 10.8% YoY.

Full-Year Highlights

The positive momentum extended to the full financial year 2025. The conglomerate's PAT for FY25 climbed 15% YoY to ₹15,037 crore. Full-year revenue from operations stood at ₹2,55,734 crore, marking a 16% YoY increase. FY25 EBITDA rose 13% YoY to ₹26,435 crore, although the EBITDA margin for the year saw a slight dip to 10.3% compared to 10.6% in FY24. Notably, the FY25 PAT included an exceptional gain of ₹475 crore, net of tax, resulting from the partial reversal of an earlier impairment provision related to funded resources in the erstwhile L&T Special Steels and Heavy Forgings Private Limited joint venture.

Record Order Book and Inflows

L&T achieved its highest ever yearly order inflows, contributing to a record-level order book. The order inflow for the quarter ended March 31, 2025, was ₹89,613 crore, a 24% increase YoY. International orders constituted a significant portion of this quarterly inflow, accounting for 70% or ₹62,739 crore.

For the full year, L&T secured orders worth ₹3,56,631 crore at the group level, representing an 18% YoY growth. International orders for the year totalled ₹207,478 crore, comprising 58% of the total order inflow. These orders spanned multiple geographies and segments, including renewable energy, transmission and distribution, airports, buildings, metros, hydel and tunnel projects, minerals and metals, thermal BTG, precision engineering, and the offshore and onshore hydrocarbon business. As of March 31, 2025, the consolidated order book of the group stood at ₹5,79,137 crore, growing by 22% YoY, with international orders representing 46% of the total.

Management Outlook and Risks

L&T concluded the year on a strong note, reporting another phase of robust performance. The company attributed its solid revenue growth to continued focus on operational excellence, driven by innovation and digitalisation. Amidst the positive results, the company flagged several risks, including global uncertainties, volatility in crude oil prices, and geopolitical tensions and military escalation. They also noted the potential impact of US-led tariff announcements, which could slow global cross-border trade and investment flows, affecting costs and productivity. Dislocated supply chains are also expected to pose challenges. L&T acknowledged that the economic growth outlook remains uncertain and ambiguous, with key risks stemming from heightened policy uncertainty alongside geopolitical issues.

Despite these challenges, the company's focus will be on the timely execution of its large order book, preserving liquidity, and optimising the use of capital and other resources. L&T remains cautiously optimistic regarding emerging new opportunities and is committed to enhancing returns to shareholders on a sustained basis.

Final Dividend Announced

The board of directors has recommended a final dividend of ₹34 per equity share for the financial year 2024-25. The record date for this dividend has been set as June 3, 2025. This recommendation aligns with the company's stated objective of enhancing shareholder returns.

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