Are Larsen & Toubro Ltd. latest results good or bad?

Larsen & Toubro Ltd. (L&T) has reported its financial results for the latest quarter, revealing a mixed performance. In the quarter ended December 2025, the company achieved net sales of ₹64,667.78 crores, reflecting a year-on-year growth of 10.49%. This growth rate is lower compared to the previous year’s 17.31%, indicating a slowdown in sales expansion.
However, the consolidated net profit for the same period showed a decline of 4.28%, amounting to ₹3,358.84 crores, contrasting with a growth of 13.96% in the prior year. This decline suggests challenges in maintaining profitability amid rising costs or competitive pressures. The operating profit margin, excluding other income, was reported at 12.21%, slightly improved from 12.86% in the previous year, indicating some resilience in operational efficiency despite the overall profit drop.

Additionally, the company has seen an adjustment in its evaluation, reflecting the ongoing operational dynamics and market conditions. The financial performance highlights L&T's ability to navigate a competitive landscape while facing margin pressures, particularly in the context of rising employee costs and interest expenses.

Overall, while L&T continues to show strong revenue figures, the decline in net profit and the adjustment in evaluation suggest that investors should remain attentive to the company's operational strategies and market positioning in the coming quarters.