Larsen & Toubro gained over 2% in early trade on the BSE on Thursday, with the stock trading around Rs. 3,886 as of mid-morning, up from the previous close of Rs. 3,793, and outperforming the broader market on renewed investor interest following the company’s December-quarter earnings and healthy order inflows. The intraday price range saw a high near Rs. 3,935 and a low around Rs. 3,850, with the stock’s VWAP around Rs. 3,897, reflecting steady accumulation in a heavyweight index constituent.

For Q3FY26, L&T reported consolidated revenue of Rs 71,450 crore, up 10% (YoY), supported by steady execution across its Projects & Manufacturing portfolio. Reported PAT came in at Rs 3,215 crore, down 4%, as the quarter included a one-time provision of Rs 1,191 crore (net of tax and NCI) towards employee benefits linked to the implementation of new labour codes; on a recurring basis, PAT stood at Rs 4,406 crore, up 31%. Operating performance remained firm, with EBITDA rising 19% to Rs 7,417 crore and margin improving to 10.4% from 9.7%.

Order momentum stayed strong, with the company logging its highest-ever quarterly order inflow at Rs 1,35,581 crore, up 17%, aided by wins across thermal power, hydrocarbons, renewables, transmission & distribution and roads & runways; international orders contributed 49% of the quarter’s inflows. The consolidated order book stood at Rs 7,33,161 crore as of December 31, 2025, up 30%, providing healthy revenue visibility, even as management flagged the labour-code provision as a non-recurring item.

The consolidated order book provided strong visibility with a healthy mix of domestic and international awards, supporting the company’s medium-term revenue trajectory.

Management reaffirmed its execution focus and order funnel strength, while highlighting that the one-off accounting impact in the quarter does not reflect underlying business momentum.

Market participants are now closely watching the pace of execution on the robust order backlog, margin sustainability and working-capital trends ahead of the seasonally stronger March quarter.

The newly concluded India-EU trade agreement could be a medium-term positive for L&T by easing tariff frictions and improving cross-border opportunity in engineering/industrial supply chains, but the near-term stock narrative is still likely to track domestic execution and conversion of the record order book.