L&T Realty revenue falls 43% as fewer homes are handed over

L&T Realty, the real estate arm of Larsen & Toubro, reported customer revenue of ₹225 crore for the quarter ended 30 September 2026. That was down 43% from a year earlier. The company's board approved the unaudited results on 27 October 2026. The company attributed the fall mainly to lower handover of residential units and sales mix.

Margins and orders

The realty segment's EBITDA margin was 54.3% in the quarter, against 67.6% in the same quarter a year earlier. That is a fall of about 13.3 percentage points, or 1,340 basis points.

Realty order inflows were ₹1,292 crore, down 12%. The company said the decline came from lower pre-sales, as some new launches were delayed. On its investor call, the company said the quarter's order inflows mainly represent L&T's share of pre-sales.

The group reported separately. Group revenue rose 16% from a year earlier, when it stood at ₹67,984 crore. Consolidated profit after tax rose 33% to ₹5,202 crore, from ₹3,926 crore. Group orders were ₹1,47,665 crore, up 28%. These figures cover the whole conglomerate and are not realty numbers.

On reporting structure, the results present realty as a separate line of business, following its segregation from the erstwhile projects and manufacturing portfolio. However, the segment note in the filing places realty under 'Others', alongside smart infrastructure and communication projects and e-commerce, digital platforms and data centres.

Pipeline and expansion plans

The company said it achieved pre-sales of about ₹10,000 crore in 2025-26, on the back of several successful launches. For the current year, it said the first quarter was broadly in line with its expectations, and that the first half would be measured. It expects stronger momentum in the October-December quarter and in the January-March quarter, supported by several large launches.

Gurugram, Bengaluru and Mumbai together have a combined launch potential of ₹25,000 crore, the company's plans show. The company expects the launches to be phased rather than brought to market at once. That gives it room to match supply to approvals and buyer demand.

Chief executive Anupam Kumar said the expansion will remain focused on Mumbai, the National Capital Region, Bengaluru and Chennai. He named four strategy pillars: land and redevelopment opportunities, premium and luxury residential products, technology-led execution, and a customer-focused sales platform. The company has more than 70 million square feet of development potential and aims to reach about 150 million square feet by 2031.

In the National Capital Region, L&T Realty Properties Ltd. acquired International Green Scapes Ltd. for ₹1,123 crore in cash. The deal was completed on 13 April 2026. The company said it added 20 acres in Gurugram, with 3.6 million square feet of development potential. Filings for the target company show nil turnover for each of the three fiscal years ending FY25. The company said the acquisition supports its plan to bring its real estate businesses into a single entity, which requires regulatory approvals.

What to watch

For investors, the next checks are whether handovers recover, whether the planned launches in the second half convert into pre-sales, and whether the margin moves back toward last year's level. The company has said that much of its pre-sales depends on launches that have not yet happened, and on approvals still pending for some projects.

For buyers in these markets, the timing of the Mumbai, Delhi-NCR and Bengaluru launches will show how quickly new supply reaches the market. The company's outlook depends on those launches going ahead on schedule.