Larsen & Toubro Ltd — Q1FY27 earnings call summary

Filed 28 July 2026 · Company audio recording

Offshore wind projects expected to deliver better-than-EPC margins over 4-5 years; renewables impacted by supply chain but cost pass-through agreements mitigate margin erosion.
Fixed-price contracts (~50% of order book) under negotiation for cost escalations; management confident of margin protection via client agreements.
Elevated ECL provisions (~Rs.2.5 billion) due to delayed collections in water/effluent projects; expected to normalize in coming quarters.
Target PPM EBITDA margin around 7.8% for FY27 despite near-term margin pressures.
FY27 order inflow growth guidance maintained at 10-12%, backed by Rs.15 trillion healthy prospects pipeline.
Revenue growth guidance for FY27 at 10-12%, with Q1 subdued due to Middle East conflict and supply chain disruptions.
Working capital guidance maintained at ~10% of sales, supported by strong collections and cash flow.
Execution challenges in Middle East limited to select projects; alternative supply routes established to manage logistics.