Larsen & Toubro Limited (LT) AI Stock Analysis

• Market Cap: ₹5.54T
• Dividend Yield: 0.84%
• Average Volume (3M): 158.84K
• Price to Earnings (P/E): 29.0
• Beta (1Y): 1.10
• Revenue Growth: 13.33%
• EPS Growth: 21.25%
• Country: IN
• Employees: 54,303
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 28.53
• Shares Outstanding: 1,375,580,900
• 10 Day Avg. Volume: 155,256
• 30 Day Avg. Volume: 158,836
• PEG Ratio: 2.55
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 102.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹4,676.29
• Price Target Upside: 14.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ₹4,529.00 ▲(11.18% Upside)

Larsen & Toubro Limited's strong financial performance and bullish technical indicators drive a high overall score. The positive earnings call further supports the outlook, although valuation concerns slightly temper the score.

Positive Factors

Order Inflows

Significant growth in order inflows indicates strong demand for L&T's services, enhancing revenue visibility and supporting long-term growth.

Strategic Partnerships

Strategic partnerships in emerging sectors like renewables and semiconductors position L&T for future growth and diversification.

International Revenue

High international revenue exposure diversifies risk and taps into global growth opportunities, strengthening L&T's market position.

Negative Factors

Cash Flow Challenges

Declining cash flow growth may limit L&T's ability to fund new projects and initiatives, potentially impacting long-term financial health.

Infrastructure Revenue Decline

Declining infrastructure revenues could signal challenges in a key business segment, affecting overall growth and profitability.

Hyderabad Metro Losses

Continued losses in Hyderabad Metro highlight operational inefficiencies, potentially straining resources and affecting profitability.

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 transmission and distribution, water and effluent treatment, and metallurgical and material handling systems. The Hydrocarbon segment provides engineering, procurement, and construction solutions for the oil and gas industry. The Power segment offers turnkey solutions for coal-based and gas-based thermal power plants, including power generation equipment with associated systems and balance-of-plant packages. The Heavy Engineering segment manufactures and supplies custom designed, engineered critical equipment and systems to the fertilizer, refinery, petrochemical, chemical, oil and gas, and thermal and nuclear power industries. The Defence Engineering segment designs, develops, produces, and supports equipment, systems, and platforms for the defense and aerospace sectors. This segment also designs, constructs, and repairs/refits defense vessels. The Others segment engages in the realty, smart world, and communication businesses, including military communications; marketing and servicing of construction and mining machinery and parts; and manufacturing and sale of rubber processing machinery. This segment also operates digital platforms, such as SuFin for B2B e-commerce; and EduTech for higher education and professional skilling. The company was founded in 1938 and is headquartered in Mumbai, India.

How the Company Makes Money

Larsen & Toubro generates revenue primarily through its diversified business segments, including construction and infrastructure development, which account for a significant portion of its earnings. The company undertakes large-scale projects, often through contracts awarded by government bodies and private enterprises, which provide a steady stream of income. Additionally, LT has a manufacturing segment that produces equipment and machinery used in construction and engineering projects, contributing further to its revenue. The company also engages in financial services, offering project financing and investment solutions. Significant partnerships with government agencies and multinational corporations enhance its ability to secure large contracts and projects, ensuring consistent revenue generation. Moreover, LT's focus on innovation and technology-driven solutions positions it well to capitalize on emerging opportunities in sectors like renewable energy and smart city initiatives, adding to its long-term revenue potential.

Larsen & Toubro Limited Financial Statement Overview

Summary

Larsen & Toubro Limited shows strong financial health with robust revenue growth and profitability. The balance sheet is stable, though leverage could be reduced. Cash flow performance needs improvement, particularly in cash generation.

Income Statement

Larsen & Toubro Limited has demonstrated robust income statement performance with a solid revenue growth rate of 16.6% from 2024 to 2025. The gross profit margin stands at 15.7%, while the net profit margin improved to 5.9% in 2025. The company also maintains a healthy EBITDA margin of 14.9%, indicating strong operational efficiency. Overall, the company's income statement reflects a positive growth trajectory and improved profitability.

Balance Sheet

The balance sheet of Larsen & Toubro Limited shows a stable financial position with a debt-to-equity ratio of 1.36, suggesting manageable leverage. The equity ratio stands at 25.7%, indicating a moderate level of equity relative to total assets. Return on equity is strong at 15.4%, reflecting efficient utilization of shareholder funds. Despite the solid metrics, there is room for improvement in reducing leverage further to enhance financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which decreased by 65.5% from 2024 to 2025. The operating cash flow to net income ratio is 0.61, indicating a moderately strong cash conversion. However, the free cash flow to net income ratio of 0.32 suggests potential challenges in converting profits into cash. The company needs to improve its cash flow generation to support sustainable growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.69T	2.60T	2.25T	1.86T	1.59T	1.39T
Gross Profit	976.42B	949.77B	839.74B	727.93B	613.70B	520.88B
EBITDA	309.66B	297.04B	268.39B	231.50B	199.98B	185.33B
Net Income	158.69B	150.37B	130.59B	104.71B	86.69B	115.83B
Balance Sheet
Total Assets	0.00	3.80T	3.40T	3.30T	3.20T	3.11T
Cash, Cash Equivalents and Short-Term Investments	605.94B	604.34B	486.32B	544.37B	460.25B	450.01B
Total Debt	0.00	1.32T	1.16T	1.21T	1.26T	1.35T
Total Liabilities	-1.15T	2.64T	2.37T	2.27T	2.25T	2.23T
Stockholders Equity	1.15T	976.56B	863.59B	893.26B	824.08B	758.69B
Cash Flow
Free Cash Flow	0.00	47.42B	137.50B	186.33B	160.53B	210.36B
Operating Cash Flow	0.00	91.61B	182.66B	227.77B	191.64B	230.74B
Investing Cash Flow	0.00	-155.18B	21.63B	-83.12B	-36.68B	-56.59B
Financing Cash Flow	0.00	65.57B	-254.13B	-115.72B	-151.81B	-152.74B

Larsen & Toubro Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4073.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LT, the sentiment is Neutral. The current price of 4073.7 is below the 20-day moving average (MA) of 4080.62, above the 50-day MA of 4030.94, and above the 200-day MA of 3679.99, indicating a neutral trend. The MACD of 21.12 indicates Positive momentum. The RSI at 45.03 is Neutral, neither overbought nor oversold. The STOCH value of 40.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:LT.

Larsen & Toubro Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LT	78 Outperform	₹5.54T	28.98	―	0.84%	13.33%	21.25%
BEL	76 Outperform	₹3.06T	53.75	―	0.60%	16.58%	25.45%
CGPOWER	72 Outperform	₹938.22B	85.92	―	0.20%	25.63%	-26.61%
HAL	71 Outperform	₹2.98T	35.24	―	0.90%	3.05%	-0.57%
MAZDOCK	68 Neutral	₹1.01T	43.26	―	0.47%	12.22%	-9.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SIEMENS	57 Neutral	₹1.09T	51.56	―	0.38%	-21.92%	-22.52%

Larsen & Toubro Limited Corporate Events

Larsen & Toubro to Shut Trading Window Ahead of Q3 FY26 Results

Larsen & Toubro Limited has notified the stock exchanges that its trading window for dealing in the company’s securities will be closed from January 1, 2026, in line with its Securities Dealing Code and SEBI’s insider trading regulations. The blackout period is being imposed ahead of the announcement of financial results for the quarter ended December 31, 2025, and the trading window will reopen 48 hours after those results are declared, underscoring the company’s adherence to regulatory norms on handling unpublished price-sensitive information for investors and insiders.

Larsen & Toubro Seeks Shareholder Nod on New Independent Directors, Key Related-Party Deals via Postal Ballot

Larsen & Toubro Limited has initiated a postal ballot process to seek shareholder approval via e-voting on a set of key corporate actions, including the appointment of Amitabh Kant and B. Santhanam as independent directors for five-year terms effective October 29, 2025, and the re-appointment of Preetha Reddy as an independent director for a further five-year term from March 1, 2026. The ballot also seeks consent for entering into material related-party transactions with group and joint-venture entities L&T-MHI Power Boilers, L&T-MHI Power Turbine Generators, Larsen Toubro Arabia LLC, and L&T Modular Fabrication Yard LLC, with the voting window running from December 20, 2025 to January 18, 2026, underscoring the company’s emphasis on formal shareholder approval for board strengthening and significant intra-group business arrangements.

Larsen & Toubro Releases Q2/H1 FY26 Earnings Call Recording

Larsen & Toubro Limited has announced the release of the audio recording for its Q2 / H1 FY26 earnings call, which is now available on their website. This move is part of their compliance with SEBI regulations, ensuring transparency and accessibility for stakeholders, and reflects the company’s commitment to maintaining open communication with investors.

Larsen & Toubro Secures Major Orders in Minerals & Metals Sector

Larsen & Toubro’s Minerals & Metals (M&M) business has secured significant orders in India, including a 180 KTPA Aluminium Smelter project for Hindalco in Odisha and a 1 MTPA Coke Oven Battery project for Tata Steel in Jamshedpur. These projects highlight L&T’s engineering excellence and strengthen its role in shaping India’s industrial infrastructure. The M&M business also received multiple orders for mining and material handling equipment, further establishing L&T’s position in the industry.

Larsen & Toubro Ensures Compliance with SEBI Regulations for Q3 2025

Larsen & Toubro Limited has announced that it has complied with the SEBI (Depositories and Participants) Regulations, 2018, by furnishing details of securities dematerialized and rematerialized during the quarter ending September 30, 2025, to all stock exchanges where its shares are listed. This compliance ensures transparency and adherence to regulatory requirements, reinforcing the company’s commitment to maintaining robust governance standards.