Revenue and Profit Growth
Over the seven-year period ending March 2025, L&T’s net sales have shown a steady upward trend, rising from approximately ₹1,35,220 crore in 2019 to ₹2,55,734 crore in 2025. This represents a near doubling of sales, reflecting the company’s expanding operations and market presence. Total operating income followed a similar trajectory, with no other operating income reported, indicating that core business activities have been the primary revenue drivers.
Operating profit before depreciation and interest (PBDIT excluding other income) increased from ₹22,715 crore in 2019 to ₹32,737 crore in 2025, although the operating profit margin has seen a gradual decline from 16.8% in 2019 to 12.8% in 2025. This margin contraction suggests rising costs or competitive pressures despite absolute profit growth. Including other income, operating profit (PBDIT) rose from ₹24,552 crore to ₹36,862 crore over the same period.
Profit before tax (PBT) improved significantly, from ₹13,735 crore in 2019 to ₹23,579 crore in 2025, while profit after tax (PAT) nearly doubled from ₹9,668 crore to ₹17,687 crore. The consolidated net profit, accounting for minority interests and share in associates, increased from ₹8,905 crore in 2019 to ₹15,037 crore in 2025. Earnings per share (EPS) followed suit, rising from ₹63.48 to ₹109.34, underscoring enhanced shareholder returns.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Cost Structure and Margins
The company’s expenditure profile reveals rising raw material costs, increasing from ₹14,772 crore in 2019 to ₹27,655 crore in 2025, reflecting inflationary pressures and expanded scale. Employee costs have more than doubled, reaching ₹46,769 crore in 2025 from ₹17,466 crore in 2019, indicative of workforce expansion and wage inflation. Manufacturing expenses also surged, peaking at ₹1,36,024 crore in 2025 compared to ₹73,319 crore in 2019.
Interestingly, selling and distribution expenses showed irregular figures in earlier years but stabilised at ₹11,558 crore in 2025. The overall total expenditure excluding depreciation rose from ₹1,12,505 crore in 2019 to ₹2,22,997 crore in 2025, consistent with the revenue growth but contributing to margin compression.
Balance Sheet and Financial Position
L&T’s balance sheet reflects a strengthening financial position with shareholder’s funds increasing from ₹66,723 crore in 2020 to ₹97,656 crore in 2025. Total reserves have grown steadily, supporting the company’s equity base. The book value per share improved from ₹475 in 2020 to ₹710 in 2025, signalling enhanced net asset value per share.
Total liabilities rose from ₹3,04,294 crore in 2020 to ₹3,75,731 crore in 2025, driven by increases in both long-term and short-term borrowings. Long-term borrowings decreased from over ₹82,000 crore in 2020 to ₹57,503 crore in 2025, while short-term borrowings fluctuated but stood at ₹35,861 crore in 2025. This shift suggests a strategic rebalancing of debt maturities.
On the asset side, net block (fixed assets net of depreciation) remained relatively stable around ₹39,500 crore in 2025, while capital work in progress increased, indicating ongoing investments. Non-current investments and long-term loans and advances also rose, reflecting diversification and expansion efforts. Current assets grew substantially to ₹2,45,184 crore in 2025, supported by increases in current investments and sundry debtors.
Cash Flow Trends
Cash flow from operating activities has been positive throughout, though it declined from ₹23,073 crore in 2021 to ₹9,160 crore in 2025, possibly due to working capital changes. Investing activities showed significant outflows in 2025, consistent with capital expenditure and acquisitions. Financing activities fluctuated, with a positive inflow of ₹6,556 crore in 2025 after several years of outflows, indicating fresh borrowings or capital raising.
Net cash inflow was modest at ₹228 crore in 2025, with closing cash and cash equivalents rising to ₹12,187 crore, providing liquidity buffers for the company’s operations.
Get the full story on Larsen & Toubro! Our detailed research dives into fundamentals, sector comparison, technical analysis, and valuations for this Construction Largecap. Make informed decisions!
- - Full research story
- - Sector comparison done
- - Informed decision support
Summary of Historical Performance
In summary, Larsen & Toubro has exhibited strong growth in revenue and profitability over the past several years, nearly doubling its net sales and significantly increasing net profit. Despite some margin pressure, the company has maintained healthy operating profits and improved earnings per share. Its balance sheet shows a solid equity base with prudent debt management, while cash flow remains positive, supporting ongoing investments and operational needs.
These trends underscore L&T’s position as a leading player in its sector, with a track record of financial resilience and expansion. Investors may find the company’s consistent growth and improving book value per share encouraging, although attention to margin trends and debt levels remains important for a balanced assessment.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
