Larsen & Toubro Technology Services (L&T), one of India’s leading multinational engineering and technology conglomerates, has released its fourth-quarter and annual financial results for the fiscal year ended 31st March 2025. The company’s Q4 performance indicates strong growth in profitability, an uptick in order inflows—especially from international markets—and consistent progress on operating efficiency. Despite the complex global macroeconomic environment, L&T delivered remarkable top-line and bottom-line growth, positioning itself firmly for future expansion.
This article presents a detailed analysis of L&T’s Q4 FY25 financial performance, its operational highlights, dividend announcements, and long-term growth potential.
Robust Profit Growth in Q4 FY25
L&T Technology Services recorded a consolidated net profit of ₹5,497 crores for the quarter ending 31st March 2025. This marks a robust 25% increase from the ₹4,396 crores reported in the same quarter last year. The rise in profitability is attributed to efficient project execution, higher-margin international contracts, and streamlined operations across segments.
The strong profit surge is also reflective of L&T’s improved project mix and better operating leverage stemming from higher utilization and strategic contract wins.
Revenue Growth Outpaces Expectations
During the fourth quarter, L&T registered consolidated revenue of ₹74,392 crores, an 11% year-on-year increase compared to ₹67,079 crores in Q4 FY24. The growth was fueled by both domestic and international projects, particularly in sectors such as infrastructure, power transmission, hydrocarbon, and digital engineering services.
L&T’s strategic focus on diversifying revenue sources and expanding presence in high-value sectors like green energy, transportation, and smart manufacturing contributed significantly to its growth trajectory.
The continued adoption of digitization, automation, and AI-based solutions by its clients enabled the company to broaden its technological service portfolio, further bolstering revenues.
EBITDA Growth and Margin Expansion
The earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q4 FY25 stood at ₹8,203 crores, up 13% from ₹7,234 crores in the same period last year. This consistent rise in EBITDA underscores the company’s emphasis on operational efficiency and financial discipline.
The EBITDA margin improved by 20 basis points, increasing from 10.8% in Q4 FY24 to 11% in Q4 FY25. While the margin improvement may appear modest, it represents a crucial gain in a sector marked by high capital intensity and tight project timelines.
Factors contributing to margin enhancement included better contract terms, cost controls, digital engineering deployments, and reduced overhead through centralized procurement processes.
Order Inflow Momentum Continues
L&T’s order inflow in Q4 FY25 saw a substantial 24% increase, reaching ₹89,613 crores, compared to ₹72,150 crores in Q4 FY24. This strong growth signals L&T’s robust demand environment and execution capability.
A striking highlight is that international orders accounted for 70% of the total order inflows in Q4, amounting to ₹62,739 crores. This reinforces the company’s expanding global footprint, especially in the Middle East, North America, and Southeast Asia.
Strategic wins in offshore oil and gas, metro rail, renewable energy, and water treatment projects reflect the global competitiveness of L&T’s engineering and project management services.
Full-Year FY25 Performance
For the full financial year 2024–25, L&T recorded group-level order inflows of ₹356,631 crores, reflecting an 18% year-on-year growth. This performance is a strong indicator of the company’s resilience and continued traction across verticals.
Of the total FY25 orders, ₹207,478 crores came from international markets, accounting for 58% of total inflows. This consistent international contribution speaks to L&T’s strategy of scaling its operations beyond Indian shores and building long-term relationships with global clients.
In addition to project execution, the company’s focus on localization and cost-effective solutions has played a major role in enhancing its international presence.
Dividend Declaration: ₹34 per Equity Share
In a rewarding move for shareholders, L&T’s board of directors has recommended a final dividend of ₹34 per equity share for the financial year ended 31st March 2025. The record date for the dividend has been fixed as 3rd June 2025.
This payout reflects the company’s healthy free cash flow and commitment to maintaining shareholder value. With the final dividend, the total dividend payout for FY25 aligns well with L&T’s dividend distribution policy, making the stock attractive to both growth and income-oriented investors.
Stock Market Performance
As of 9th May 2025, L&T’s share price on the National Stock Exchange (NSE) stood at ₹112.4, posting a 3.43% gain in a single trading day. The immediate rally following the Q4 results is a testament to positive investor sentiment and confidence in L&T’s growth outlook.
Over the last five years, L&T’s stock has appreciated by a remarkable 319.13%, significantly outperforming benchmark indices. This surge is driven by a combination of robust order execution, strong financials, and global expansion.
L&T’s sound business fundamentals, dividend payouts, and future-ready business model continue to make it a blue-chip favorite among institutional and retail investors.
Segment-Wise Analysis
L&T operates across diverse verticals including:
-
Infrastructure Projects: Continued to be the largest contributor to revenue and order book, with focus on metro rail, expressways, and smart cities.
-
Hydrocarbon Engineering: Strong performance driven by offshore orders from the Middle East and Southeast Asia.
-
IT and Technology Services: Grew steadily due to digital transformation projects, AI integration, and data analytics.
-
Power and Heavy Engineering: Stable contribution, bolstered by strategic renewable energy and transmission projects.
The diversified nature of L&T’s operations provides a natural hedge against sector-specific volatility and ensures steady performance across market cycles.
Global Expansion Strategy
L&T has aggressively pursued global expansion through strategic partnerships, joint ventures, and localized operations. The firm’s emphasis on leveraging technology, improving global delivery models, and aligning with international regulatory standards has enabled it to compete effectively in foreign markets.
A key enabler of its global growth has been the company’s ability to localize offerings while maintaining cost and time efficiencies. As geopolitical dynamics shift infrastructure focus toward renewable energy, digitalization, and self-reliance, L&T stands to gain significantly from its presence in emerging global markets.
Digital Transformation and Innovation
A noteworthy pillar of L&T’s strategy is its emphasis on digital engineering, automation, and smart construction. The company continues to deploy AI-based project monitoring tools, digital twins, cloud-based ERP solutions, and remote supervision technology to optimize productivity.
These innovations not only enhance project turnaround but also improve accuracy, reduce human error, and minimize cost overruns. The digitalization efforts are now being extended across all engineering verticals, establishing L&T as a tech-first infrastructure giant.
Key Financials Summary: Q4 FY25 vs Q4 FY24
| Metric | Q4 FY25 | Q4 FY24 | YoY Growth |
|---|---|---|---|
| Consolidated Net Profit | ₹5,497 crore | ₹4,396 crore | +25% |
| Consolidated Revenue | ₹74,392 crore | ₹67,079 crore | +11% |
| EBITDA | ₹8,203 crore | ₹7,234 crore | +13% |
| EBITDA Margin | 11% | 10.8% | +20 bps |
| Order Inflow (Q4) | ₹89,613 crore | ₹72,150 crore | +24% |
| International Orders (Q4) | ₹62,739 crore | ~₹50,500 crore | +24% (est.) |
| Dividend Proposed (FY25) | ₹34/share | ₹30/share | +13.3% |
| Stock Price (as on 9 May) | ₹112.4 | ₹108.7 | +3.43% (1-day) |
| 5-Year Share Return | – | – | +319.13% |
Risks and Challenges
Despite its stellar performance, L&T is not immune to risks:
-
Geopolitical Tensions: Heightened tensions in the Middle East and Asia-Pacific may affect overseas project execution.
-
Input Cost Volatility: Raw material price fluctuations (cement, steel, oil) can strain project margins.
-
Currency Exchange Risk: With nearly 60-70% of its order book international, foreign exchange volatility could impact profitability.
-
Regulatory Hurdles: Sudden changes in domestic or international infrastructure policies may delay execution timelines.
L&T’s risk mitigation framework includes hedging, supplier partnerships, and contract renegotiation strategies to tackle such challenges.
Future Outlook
The management has indicated a strong pipeline of infrastructure, water management, renewable energy, and IT-enabled projects in both domestic and international markets. With government investments in infrastructure under the National Infrastructure Pipeline (NIP), PLI schemes, and global green energy collaborations, L&T is poised for continued growth.
Further, L&T plans to strengthen its technology services arm through investments in AI/ML, cloud infrastructure, and cybersecurity to tap into the growing demand for digital transformation solutions globally.
Conclusion
L&T Technology Services has delivered an impressive Q4 FY25 performance, marked by double-digit revenue growth, a 25% jump in profit, and a sharp increase in international orders. With a forward-looking strategy focused on global diversification, digitalization, and infrastructure leadership, the company is well-positioned to capitalize on upcoming opportunities.
Investors should consider L&T’s robust fundamentals, dividend history, and multi-year stock returns while making long-term investment decisions. As India and the world pivot toward sustainable and digital infrastructure, L&T stands as a powerhouse of engineering excellence and shareholder value creation.
ALSO READ: Britannia Q4 FY25: Resilient Profits Amid Headwinds
