Mumbai: Larsen & Toubro (L&T) reported over 1 per cent decline in net profit for the third quarter (Q3) of the financial year 2024-25 at Rs 3,358.84 crore, excluding non-controlling interests, from Rs 3,395.29 crore reported in the previous quarter (Q2 FY25). L&T’s revenue rose by 17 per cent at Rs 64,668 crore in Q3FY25, up from Rs 55,128 crore in Q3FY24, according to its stock exchange filing.

However, despite this growth, the company fell short of market expectations. Analysts attributed the decline to a contraction in L&T’s operating margins. The company’s EBITDA margin declined by 70 basis points to 9.7 percent in Q3 FY25 from 10.4 percent a year ago. This decline was primarily due to a sharp rise in costs. The cost of raw materials and components surged by 50 per cent, while expenses for construction materials went up by 16 per cent.