Larsen & Toubro Limited (IN:LT)
:LT
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Larsen & Toubro Limited
(LT)
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Rating:70Outperform
Price Target:
₹4,356.00
▲(10.00% Upside)
Action:UpgradedDate:03/14/26
The score is driven primarily by solid underlying financial performance and a constructive earnings-call outlook (strong order momentum, revenue growth confidence, and improved working capital). These positives are meaningfully offset by weak technicals (downtrend and bearish momentum) and a relatively expensive valuation (high P/E with modest yield).
Positive Factors
Record order inflows & backlog
A 30% larger order book and record quarterly inflows provide multi‑quarter revenue visibility and backlog coverage for capital allocation. Durable contract pipeline supports sustained top-line growth, smoother capacity planning and better negotiation leverage on subcontracting and procurement.
Negative Factors
Weak free cash flow conversion
A steep drop in free cash flow and low FCF-to-net income conversion signals difficulty turning accounting profits into discretionary cash. Over several quarters this can constrain capital expenditure, dividend flexibility and debt reduction, increasing sensitivity to working-capital swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Record order inflows & backlog
A 30% larger order book and record quarterly inflows provide multi‑quarter revenue visibility and backlog coverage for capital allocation. Durable contract pipeline supports sustained top-line growth, smoother capacity planning and better negotiation leverage on subcontracting and procurement.
Read all positive factors
Larsen & Toubro Limited (LT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹5.45T
Dividend Yield0.84%
Average Volume (3M)158.84K
Price to Earnings (P/E)43.7
Beta (1Y)1.31
Revenue Growth13.33%
EPS Growth21.25%
CountryIN
Employees54,303
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)23.36
Shares Outstanding1,375,632,200
10 Day Avg. Volume155,256
30 Day Avg. Volume158,836
Financial Highlights & Ratios
PEG Ratio2.55
Price to Book (P/B)5.00
Price to Sales (P/S)1.88
P/FCF Ratio102.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹4,680.83Price Target Upside18.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)154.31
Revenue Forecast (FY)₹3.36T
Larsen & Toubro Limited Business Overview & Revenue Model
Company Description
Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. The Infrastructure segment engineers and constructs building and factories, transportation infrastructure, heavy civil infrastructure, power tran...
How the Company Makes Money
L&T primarily makes money by executing large engineering, procurement, and construction (EPC) and project management contracts for public- and private-sector customers. Revenue is recognized as projects progress (based on contract terms and accoun...
Larsen & Toubro Limited Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: record order inflows, a materially larger order book, double-digit revenue growth, improved EBITDA margins, strong recurring PAT growth, and a significant improvement in working capital and cash flows. Strategic initiatives (partnerships, data centers, semiconductor and electrolyzer work) and ESG recognition further bolster the outlook. Headwinds include margin pressure in the Energy/Hydrocarbon portfolio from a few legacy projects (expected to persist for a few quarters), a one-time INR 11.9 billion Labour Codes charge that reduced reported PAT, some cancellations/delays (notably Kuwait) and slowing activity/funding in certain domestic water projects. On balance, the operational momentum, balance sheet improvements and record orders outweigh the transitory execution and one-time issues, with management retaining FY'26 revenue and order guidance and revising working-capital targets lower.Positive Updates
Record Quarterly Order Inflows
Highest ever quarterly order inflows of INR 1,356 billion (INR 1.356 trillion), up 17% YoY; Projects & Manufacturing inflows INR 1,164 billion, up 18% YoY. Domestic P&M orders INR 620 billion (+30% YoY) and international INR 544 billion (+7% YoY).
Negative Updates
Energy Segment Margin Decline
Energy (Hydrocarbon + CarbonLite) EBITDA margin fell to 5.9% in Q3 FY'26 from 8.3% a year ago. Margin pressure driven by cost overruns on a few competitively priced Hydrocarbon projects; management expects softness for ~2–3 quarters while stressed projects close out.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Order Inflows
Highest ever quarterly order inflows of INR 1,356 billion (INR 1.356 trillion), up 17% YoY; Projects & Manufacturing inflows INR 1,164 billion, up 18% YoY. Domestic P&M orders INR 620 billion (+30% YoY) and international INR 544 billion (+7% YoY).
Read all positive updates
Company Guidance
On guidance, L&T said it now expects to exceed its FY‑26 order‑inflow target of +10% after 9M order inflows rose ~30% YoY (Q3 group inflows INR 1,356bn; Projects & Manufacturing INR 1,164bn — domestic INR 620bn, international INR 544bn), and it remains confident of achieving full‑year revenue growth of 15% (9M revenue +12%; Q3 group revenue INR 714bn; P&M revenue INR 523bn). Projects & Manufacturing EBITDA was 7.9% for 9M against a full‑year target of 8.5% (Q3 P&M 8.1%); group EBITDA margin in Q3 was 10.4% (9.7% a year ago). Net working‑capital/revenue improved to 8.2% as of Dec‑25 (upside of 450bps YoY) and the March‑26 target has been revised down to ~10% (from 12%). Recurring PAT in Q3 was INR 44bn (+31% YoY) while reported PAT was INR 32bn (‑4% YoY) after an INR 11.9bn one‑time Labour Codes provision; trailing 12‑month RoE was 16.5% (17.6% ex‑provision) versus an 18% Lakshya target. Order book stands at INR 7.33tn (+30% YoY) and near‑term prospects at INR 5.92tn (+7% YoY).Larsen & Toubro Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.74T | 2.60T | 2.25T | 1.86T | 1.59T | 1.39T |
| Gross Profit | 846.09B | 949.77B | 839.74B | 727.93B | 613.70B | 520.88B |
| EBITDA | 317.06B | 297.04B | 268.39B | 231.50B | 199.98B | 185.33B |
| Net Income | 163.99B | 150.37B | 130.59B | 104.71B | 86.69B | 115.83B |
Balance Sheet | ||||||
| Total Assets | 3.91T | 3.80T | 3.40T | 3.30T | 3.20T | 3.11T |
| Cash, Cash Equivalents and Short-Term Investments | 631.24B | 604.34B | 486.32B | 544.37B | 460.25B | 450.01B |
| Total Debt | 1.34T | 1.32T | 1.16T | 1.21T | 1.26T | 1.35T |
| Total Liabilities | 2.71T | 2.64T | 2.37T | 2.27T | 2.25T | 2.23T |
| Stockholders Equity | 1.01T | 976.56B | 863.59B | 893.26B | 824.08B | 758.69B |
Cash Flow | ||||||
| Free Cash Flow | 11.41B | 47.42B | 137.50B | 186.33B | 160.53B | 210.36B |
| Operating Cash Flow | 38.16B | 91.61B | 182.66B | 227.77B | 191.64B | 230.74B |
| Investing Cash Flow | 10.56B | -155.18B | 21.63B | -83.12B | -36.68B | -56.59B |
| Financing Cash Flow | -74.85B | 65.57B | -254.13B | -115.72B | -151.81B | -152.74B |
Larsen & Toubro Limited Technical Analysis
Positive
3959.90
Price Trends
3913.69
Positive
3963.33
Negative
3816.74
Positive
Market Momentum
-9.93
Negative
57.75
Neutral
86.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LT, the sentiment is Positive. The current price of 3959.9 is above the 20-day moving average (MA) of 3629.82, above the 50-day MA of 3913.69, and above the 200-day MA of 3816.74, indicating a bullish trend. The MACD of -9.93 indicates Negative momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 86.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LT.
Larsen & Toubro Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹3.23T | 46.53 | ― | 0.60% | 16.58% | 25.45% | |
71 Outperform | ₹1.15T | 89.56 | ― | 0.20% | 25.63% | -26.61% | |
71 Outperform | ₹2.75T | 39.31 | ― | 0.90% | 3.05% | -0.57% | |
70 Outperform | ₹5.45T | 43.68 | ― | 0.84% | 13.33% | 21.25% | |
68 Neutral | ₹996.09B | 28.54 | ― | 0.47% | 12.22% | -9.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ₹1.21T | 98.35 | ― | 0.38% | -21.92% | -22.52% |
* Industrials Sector Average
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Larsen & Toubro Limited Corporate Events
L&T’s Water Business Wins Significant 24×7 Water Project Order in Guwahati
Mar 25, 2026
Larsen Toubro’s Water Effluent Treatment business has secured a significant design-build-operate order from the Guwahati Metropolitan Drinking Water Sewerage Board in Assam for a 24×7 water management project. The scheme aims to prov...
L&T to Brief Media on Middle East Projects and Employee Safety Measures
Mar 21, 2026
Larsen Toubro has informed exchanges that it will host a media interaction in Mumbai on March 21, 2026 to address high-level updates related to its Middle East operations. The company aims to brief journalists on the status and continuity of its ...
Larsen & Toubro Secures Exchange Observations for Realty Scheme of Arrangement
Mar 19, 2026
Larsen Toubro has reported that it has received observation letters from BSE Limited and the National Stock Exchange of India regarding its proposed Scheme of Arrangement with its subsidiary LT Realty Properties Limited. The scheme, earlier appro...
L&T bags major power grid orders in India and the Middle East
Feb 25, 2026
Larsen Toubro’s Power Transmission Distribution business has secured a series of major EPC contracts to build key electricity grid infrastructure in India and overseas. The wins reinforce LT’s position as a preferred partner for larg...
L&T Transfers SuFin E-commerce Business to Wholly Owned Subsidiary
Feb 24, 2026
Larsen Toubro has signed a Business Transfer Agreement to move its SuFin e-commerce platform for industrial and construction goods to SuFin Limited, a wholly owned subsidiary, via a slump sale on a going-concern basis. The cash consideration is e...
Larsen & Toubro Uploads Q3 and 9M FY26 Earnings Call Audio for Investors
Jan 28, 2026
Larsen Toubro Limited has informed stock exchanges that the audio recording of its Q3 and nine-month FY26 earnings call, held on January 28, 2026, has been uploaded to the company’s investor relations website. The disclosure, made in compli...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.