Q1 FY26: A Stellar Start for L&T and Bank of India
The first quarter of FY26 has kicked off with a bang, and corporate giants like Larsen & Toubro (L&T) and Bank of India are stealing the spotlight! With L&T smashing profit and revenue expectations and Bank of India posting an impressive 32% profit surge, the financial world is buzzing with excitement. Let’s dive into the numbers and see what’s driving this momentum!
L&T’s Q1 Triumph: Profit Soars 30%
Larsen & Toubro, India’s leading engineering and construction powerhouse, delivered a knockout performance in Q1 FY26. The company reported a consolidated net profit of ₹3,617 crore, a robust 30% year-on-year (YoY) increase from ₹2,786 crore in Q1 FY25. This beat analysts’ expectations of ₹3,400 crore, according to Bloomberg estimates. Revenue from operations also climbed 15.5% YoY to ₹63,678 crore, surpassing the forecasted ₹62,814 crore.
What’s fueling this growth? L&T’s stellar performance is driven by robust order execution in its projects and manufacturing portfolio, backed by a massive order book. The company secured new orders worth ₹94,453 crore, a 33% YoY growth, with international orders making up 46% of the total. As of June 2025, L&T’s consolidated order book stood at a whopping ₹6.12 lakh crore.
Key Highlights from L&T’s Q1 Results:
-
EBITDA: Up 13% to ₹6,317 crore (vs. ₹5,615 crore last year).
-
EBITDA Margin: 9.9%, slightly down from 10.2% due to project mix.
-
Order Inflow: Energy projects led the charge, boosting growth.
“L&T has achieved steady growth across all financial parameters in Q1 FY26, despite global challenges,” said S.N. Subrahmanyan, Chairman and Managing Director. “The Union Budget’s focus on infrastructure will further propel our momentum.”
Bank of India: A 32% Profit Surge
Bank of India, one of India’s leading public sector banks, also had a fantastic Q1 FY26. The bank reported a net profit of ₹2,252 crore, a 32% YoY increase from ₹1,703 crore in Q1 FY25. This strong performance was driven by improved asset quality and a significant rise in non-interest income.
Despite a slight dip in net interest income (NII), the bank’s total income grew, supported by a 27% YoY increase in non-interest income to ₹1,462 crore. The bank’s net interest margin (NIM) improved to 3.03%, up 49 basis points from last year, reflecting better operational efficiency.
Key Highlights from Bank of India’s Q1 Results:
-
Gross NPA: Improved to 3.01%, down 76 basis points YoY.
-
Net Interest Income: Up 6% to ₹6,275.8 crore.
-
Total Income: Rose to ₹15,821 crore from ₹11,124 crore in Q1 FY22.
“Lower provisions for non-performing assets and strong other income streams have bolstered our profitability,” said a Bank of India spokesperson.
Why These Results Matter
The stellar performances by L&T and Bank of India signal a positive outlook for India’s economy. L&T’s growth highlights the strength of India’s infrastructure sector, supported by government initiatives like the Union Budget’s focus on ‘Viksit Bharat’ by 2047. Meanwhile, Bank of India’s improved asset quality and profit growth reflect resilience in the banking sector, even amidst global economic uncertainties.
These results also set a bullish tone for the stock market, with both companies outperforming expectations. Investors are likely to keep a close eye on these stocks as they react to the Q1 numbers in trading sessions.
What’s Next for Q1 FY26?
With nearly 100 companies announcing their Q1 results on July 29, 2025, the earnings season is in full swing. Other major players like NTPC, Asian Paints, and Varun Beverages are also reporting, adding to the excitement. Stay tuned for more updates as the financial landscape continues to unfold!
This blog provides general information about the Q1 FY26 financial results of Larsen & Toubro and Bank of India. The data is sourced from reliable news outlets and is intended for informational purposes only. It does not constitute financial advice or a recommendation to buy or sell stocks. Always consult a certified financial advisor before making investment decisions. The author and publisher are not responsible for any losses incurred based on this information.