New Delhi, Oct. 28 -- Revenue from Larsen & Toubro's core business of projects, products and manufacturing (PPM) increased by 20% year-on-year to Rs.58,391 crore in the September quarter (Q2FY27). However, the PPM Ebitda margin narrowed 25 basis points (bps) to 7.03%.

Blame the projects segment, where the margin dipped 52 bps year-on-year to 6.3% even as revenue rose by 19% to Rs.53,911 crore. In contrast, the product and manufacturing segment margin expanded by 226 bps to 15.8%. Thus, overall PPM Ebitda growth came in slower than revenue growth at 16% year-on-year to Rs.4,104 crore. The management reiterated its margin guidance of 7.8% for FY27.

Project profitability suffered because of continuing cost pressures in water and effluent t...