Larsen & Toubro Limited has informed the Exchange about Amalgamation/ Merger of L&T Power Development Limited, a wholly owned subsidiary of the Company, with the Company
M&A
▲ Positive Development
LOW RISK
📅 Filed on BSE: 28 Jul 2026, 05:30 PM IST · BSE ID: a716fe47-50dc-4b09-918f-246dfea0e85b
View Original BSE Filing (PDF)
💡
In Simple Terms
Larsen & Toubro's Board approved merging a power subsidiary into itself and reported Q1 earnings with higher revenue and profit.
🤖 AI Summary
- Larsen & Toubro's Board approved the merger of L&T Power Development Limited, a wholly owned subsidiary, with the Company.
- The Scheme of Amalgamation is subject to necessary approvals, including sanction from the Mumbai bench of NCLT.
- Consolidated revenues for Q1 FY27 (ended June 30, 2026) were ₹ 67,942 crore, a 7% year-on-year growth.
- Consolidated Profit After Tax (PAT) for Q1 FY27 reached ₹ 4,123 crore, marking a 14% year-on-year increase.
- New order inflows for Q1 FY27 totaled ₹ 108,014 crore, reflecting a 14% year-on-year growth.
🔢 Key Numbers — exact figures from BSE filing, not rounded
Consolidated Revenues Q1 FY27
₹ 67,942 crore
7%
Consolidated Profit After Tax (PAT) Q1 FY27
₹ 4,123 crore
14%
Group Order Inflows Q1 FY27
₹ 108,014 crore
14%
Consolidated Order Book as on June 30, 2026
₹ 778,954 crore
🏢 How This Affects the Company
The merger of L&T Power Development Limited into the parent company is intended to streamline the corporate structure for the power development business, aligning with strategic plans.
Upon the scheme becoming effective, shares held by the Company in the transferor company will be cancelled, potentially simplifying the balance sheet structure.
The amalgamation is expected to enhance strategic focus and operational agility by integrating the wholly owned power development subsidiary directly into the main company's operations.
The merger process carries regulatory approval risk, specifically requiring sanction from the National Company Law Tribunal (NCLT).
👥 What This Means For Shareholders
✅
Action Required
No immediate action is required from shareholders regarding the announced merger or financial results.
👤
Who Is Affected
Shareholders of Larsen & Toubro will indirectly benefit from the streamlined corporate structure post-merger and the company's Q1 FY27 financial performance, including 14% PAT growth.
🔍
Management Signal
Management is signaling a focus on corporate restructuring for enhanced strategic focus and capital allocation efficiency, alongside delivering strong financial results and order book growth.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
NCLT decision on the Scheme of Amalgamation of L&T Power Development Limited.
Future disclosures regarding the effective date of the merger.
Detailed segment-wise performance for Q1 FY27 after the strategic realignment.
LOW RISK
The merger involves a wholly-owned subsidiary and is a corporate restructuring with standard regulatory approvals.
💡 Investor Takeaway
Larsen & Toubro's Board approved the merger of L&T Power Development Limited. For Q1 FY27, consolidated revenues grew 7% year-on-year to ₹ 67,942 crore, and consolidated PAT increased 14% to ₹ 4,123 crore. Order inflows rose 14% to ₹ 108,014 crore.
⚖️ Strengths & Concerns
✅ Positives
- Q1 FY27 consolidated revenues increased by 7% year-on-year, reaching ₹ 67,942 crore, indicating business progress.
- Consolidated Profit After Tax (PAT) for Q1 FY27 grew by 14% year-on-year to ₹ 4,123 crore, reflecting improved profitability.
⚠️ Concerns
- The Scheme of Amalgamation is still subject to necessary approvals, including NCLT sanction, introducing a timeline uncertainty.
📅 Company Track Record
Larsen & Toubro has recently engaged in strategic portfolio management, including divesting its 100% stake in L&T Metro Rail (Hyderabad) Limited for ₹ 1,461.47 crore in April 2026. The company also expanded its L&T Realty portfolio with land acquisitions in NCR, following the ₹ 1,123 crore acquisition of International Green Scapes in April 2026.
Based on publicly available historical data. For context only.
❓ Frequently Asked Questions
What did Larsen & Toubro's Board approve on July 28, 2026?
Larsen & Toubro's Board approved the merger of L&T Power Development Limited, a wholly owned subsidiary, with the Company, and the Consolidated and Standalone Un-audited Financial Results for the Quarter ended June 30, 2026.
What were Larsen & Toubro's consolidated revenues for Q1 FY27?
For the quarter ended June 30, 2026 (Q1 FY27), Larsen & Toubro's consolidated revenues were ₹ 67,942 crore, reflecting a year-on-year growth of 7%.
What was Larsen & Toubro's consolidated Profit After Tax (PAT) for Q1 FY27?
Larsen & Toubro posted a Consolidated Profit After Tax (PAT) of ₹ 4,123 crore for the quarter ended June 30, 2026 (Q1 FY27), registering a year-on-year growth of 14%.
What was the value of new orders secured by Larsen & Toubro in Q1 FY27?
Larsen & Toubro secured orders worth ₹ 108,014 crore for the quarter ended June 30, 2026, marking a year-on-year growth of 14%.
What is the next step for the L&T Power Development Limited merger?
The merger scheme is subject to necessary approvals, including sanction by the Mumbai bench of the Hon’ble National Company Law Tribunal (NCLT).
Questions based on this BSE filing only. For information purposes.