Can L&T’s product segment boost profitability as semiconductor and industrial electronics gain scale?

What happened: Larsen & Toubro's projects, products and manufacturing (PPM) revenue rose 20% year-on-year in Q2FY27, but PPM Ebitda margin narrowed 25 bps to 7.03%, with the projects segment margin down 52 bps to 6.3%. Key numbers: PPM revenue ₹58,391 crore, up 20%. Why it matters: The product and manufacturing segment margin expanded, and management expects semiconductor production to begin over the next couple of quarters and EV traction motor commercial production in Q3. The street will watch how the semiconductor, industrial electronics and AI data centre businesses shape up.

Larsen & Toubro's projects, products and manufacturing (PPM) revenue rose 20% year-on-year in Q2FY27, but PPM Ebitda margin narrowed 25 bps to 7.03%, with the projects segment margin down 52 bps to 6.3%.

The product and manufacturing segment margin expanded, and management expects semiconductor production to begin over the next couple of quarters and EV traction motor commercial production in Q3. The street will watch how the semiconductor, industrial electronics and AI data centre businesses shape up.