Want to see IN:LT full AI Analyst Report?
Top Page
Larsen & Toubro Limited
(LT)
Select Model
Select Model
Rating:62Neutral
Price Target:
₹4,063.00
▲(7.34% Upside)
Action:Reiterated
Date:07/29/26
The score is driven primarily by solid underlying financial performance and a constructive earnings-call outlook supported by a strong and growing order book. These positives are tempered by weak technical trend signals (price below major moving averages) and a relatively high valuation with a low dividend yield, alongside margin and cash-conversion variability risks.
Positive Factors
Large, growing order book
A 7.79 trillion INR order book, +27% YoY, provides multi‑year revenue visibility across segments. That backlog smooths near‑term revenue risk, supports capacity planning, and underpins sustained EPC cash flows and bidding competitiveness even if new awards fluctuate.
Negative Factors
Meaningful leverage
Sustained debt‑to‑equity above 1.0 raises financial risk for a project‑centric firm exposed to timing and working‑capital volatility. High leverage limits strategic optionality, increases interest exposure if rates rise, and amplifies the impact of execution setbacks on solvency metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, growing order book
A 7.79 trillion INR order book, +27% YoY, provides multi‑year revenue visibility across segments. That backlog smooths near‑term revenue risk, supports capacity planning, and underpins sustained EPC cash flows and bidding competitiveness even if new awards fluctuate.
Read all positive factors
Larsen & Toubro Limited (LT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹5.42T
Dividend Yield0.96%
Average Volume (3M)158.84K
Price to Earnings (P/E)30.2
Beta (1Y)1.32
Revenue Growth9.78%
EPS Growth13.15%
CountryIN
Employees56,807
SectorGeneral
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)121.63
Shares Outstanding1,375,729,100
10 Day Avg. Volume155,256
30 Day Avg. Volume158,836
Financial Highlights & Ratios
PEG Ratio2.88
Price to Book (P/B)4.41
Price to Sales (P/S)1.69
P/FCF Ratio40.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹5,030.00Price Target Upside32.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)146.62
Revenue Forecast (FY)₹3.20T
Larsen & Toubro Limited Business Overview & Revenue Model
Company Description
Larsen & Toubro Limited engages in engineering, procurement, and construction projects (EPC) in India and internationally. The Infrastructure Projects segment is involved in the engineering and construction of building and factories, transportatio...
How the Company Makes Money
L&T primarily makes money by executing project-based engineering and construction work for public- and private-sector customers in India and internationally. Its core revenue model is contract-driven: it bids for and wins EPC/turnkey and construct...
Larsen & Toubro Limited Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call highlighted a strong backlog and order momentum (orders +14% YoY; order book +27%), improved working capital and healthy cash generation, along with strategic wins in offshore wind and an upgraded credit rating — all supporting medium‑term growth. Offsetting these positives were margin pressure (group EBITDA down ~90 bps), elevated ECL provisions (~INR 2.5bn), segmental revenue softness (notably Energy‑Green -11%) and execution uncertainty tied to Middle East supply‑chain disruptions and deferred conventional energy awards. Management maintained FY'27 guidance for order inflows (10–12%), revenue growth (10–12%) and PP&M margin (~7.8%) but flagged near‑term execution risks and that some treasury‑driven other income may not be fully sustainable as strategic investments ramp up.Positive Updates
Strong order inflows and book expansion
Group order inflows were INR 1,080 billion in Q1 FY'27, up 14% YoY; PP&M order inflows were INR 860 billion, also +14% YoY. Total order book stood at INR 7.79 trillion as of June 2026, up 27% YoY, providing multi-year revenue visibility.
Negative Updates
Margin compression at group and PP&M level
Group EBITDA margin (excluding other income) declined to 9.0% in Q1 FY'27 from 9.9% a year earlier. PP&M EBITDA margin was 7.0%, down ~20 bps YoY, reflecting lower execution, ForEx effects in IT subsidiaries and higher ECL provisions.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong order inflows and book expansion
Group order inflows were INR 1,080 billion in Q1 FY'27, up 14% YoY; PP&M order inflows were INR 860 billion, also +14% YoY. Total order book stood at INR 7.79 trillion as of June 2026, up 27% YoY, providing multi-year revenue visibility.
Read all positive updates
Company Guidance
L&T maintained cautious but confident FY'27 guidance: order inflow growth of 10–12% and revenue growth of 10–12%, with a PP&M EBITDA margin target of around 7.8% and a working‑capital target of ~10%. Key metrics cited to support this outlook include a healthy prospects pipeline of ~INR 15 trillion for the remaining nine months, Q1 order inflows of INR 1,080 billion (up 14% YoY), a total order book of INR 7.79 trillion (up 27% YoY; 48% domestic / 52% international), Q1 group revenues of INR 679 billion (7% YoY) and PP&M revenues of INR 462 billion (2% YoY), Q1 group EBITDA margin (ex‑other income) of 9% (vs 9.9% a year ago) and PP&M margin of 7% (down 20 bps), Q1 PAT of INR 41 billion (up 14%), collections excl. Financial Services of INR 658 billion, operating cash flow excl. FS of INR 43 billion, improved NWC/sales to 4.9% (GWC/sales 51.1%), and a trailing 12‑month ROE of 16.1%; management expects award activity to pick up from Q2 and reported no project cancellations among active bids.Larsen & Toubro Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.86T | 2.60T | 2.25T | 1.86T | 1.59T |
| Gross Profit | 364.86B | 949.77B | 839.74B | 727.93B | 613.70B |
| EBITDA | 329.84B | 297.04B | 268.39B | 231.50B | 199.98B |
| Net Income | 160.84B | 150.37B | 130.59B | 104.71B | 86.69B |
Balance Sheet | |||||
| Total Assets | 4.53T | 3.80T | 3.40T | 3.30T | 3.20T |
| Cash, Cash Equivalents and Short-Term Investments | 803.73B | 604.34B | 486.32B | 544.37B | 460.25B |
| Total Debt | 1.25T | 1.32T | 1.16T | 1.21T | 1.26T |
| Total Liabilities | 3.24T | 2.64T | 2.37T | 2.27T | 2.25T |
| Stockholders Equity | 1.09T | 976.56B | 863.59B | 893.26B | 824.08B |
Cash Flow | |||||
| Free Cash Flow | 120.11B | 47.42B | 137.50B | 186.33B | 160.53B |
| Operating Cash Flow | 168.20B | 91.61B | 182.66B | 227.77B | 191.64B |
| Investing Cash Flow | -156.82B | -155.18B | 21.63B | -83.12B | -36.68B |
| Financing Cash Flow | 17.07B | 65.57B | -254.13B | -115.72B | -151.81B |
Larsen & Toubro Limited Technical Analysis
Positive
3785.25
Price Trends
3986.59
Positive
3898.00
Positive
3938.48
Positive
Market Momentum
-9.63
Negative
59.44
Neutral
88.47
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 3785.25 is below the 20-day moving average (MA) of 3870.70, below the 50-day MA of 3986.59, and below the 200-day MA of 3938.48, indicating a bullish trend. The MACD of -9.63 indicates Negative momentum. The RSI at 59.44 is Neutral, neither overbought nor oversold. The STOCH value of 88.47 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹124.97B | 18.08 | ― | 2.51% | 27.23% | 19.20% | |
62 Neutral | ₹5.42T | 30.22 | ― | 1.00% | 9.78% | 13.15% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹56.19B | 25.22 | ― | ― | -29.16% | 35.71% | |
51 Neutral | ₹118.50B | 19.90 | ― | 1.74% | -15.69% | -18.10% | |
50 Neutral | ₹99.76B | 39.82 | ― | 0.70% | -4.78% | -50.18% | |
48 Neutral | ₹124.86B | 20.61 | ― | 0.74% | 7.59% | 4.99% |
* General Sector Average
IN:LT
Larsen & Toubro Limited
4,048.00
453.86
12.63%
IN:AFCONS
Afcons Infrastructure Limited
280.70
-119.77
-29.91%
IN:ENGINERSIN
Engineers India Limited
240.35
40.05
19.99%
IN:HCC
Hindustan Construction Co. Ltd.
21.93
-3.50
-13.76%
IN:IRCON
IRCON International Ltd.
131.35
-38.12
-22.49%
IN:KEC
KEC International Ltd.
475.35
-352.10
-42.55%
Larsen & Toubro Limited Corporate Events
L&T Wins Major Kuwait EPC Contract for Jurassic Light Oil Export Facilities
Jul 29, 2026
LT Energy Hydrocarbon Onshore has secured a major engineering, procurement and construction contract from Kuwait Oil Company to develop Jurassic Light Oil export facilities and upgrade the country’s crude export network. The lump-sum turnkey...
L&T clears June-quarter results and approves merger of power subsidiary
Jul 28, 2026
Larsen Toubro Limited’s board has approved the company’s consolidated and standalone unaudited financial results for the quarter ended 30 June 2026, accompanied by a limited review report from its statutory auditors. The disclosures c...
L&T Sets NCLT-Convened Shareholder Meet on Realty Restructuring Scheme
Jun 27, 2026
Larsen Toubro Limited has scheduled a court-convened general meeting of its equity shareholders on August 4, 2026, to be held via video conferencing and other audio-visual means, to consider and potentially approve a Scheme of Arrangement with LT...
Larsen & Toubro to Engage Investors at PL Capital Defence Conference on June 25
Jun 20, 2026
Larsen Toubro has informed stock exchanges that it will participate in the PL Capital Defence Conference in Mumbai on June 25, 2026, engaging with an investor group through an in-person analyst and institutional investors’ meeting. The comp...
Larsen & Toubro Sets Up New AI Compute Infrastructure Subsidiary
Jun 20, 2026
Larsen Toubro has disclosed that its wholly owned subsidiary Vyoma.AI Limited has incorporated a new wholly owned step-down subsidiary, LTN Compute Private Limited, on June 20, 2026, in India. The new entity has an authorised capital of Rs. 1,00,...
Larsen & Toubro to Engage Investors at PL Capital Defence Conference on June 25
Jun 20, 2026
Larsen Toubro has notified the exchanges that it will participate in the PL Capital Defence Conference in Mumbai on June 25, 2026, meeting an investor group in person at 11:00 a.m. IST. The company plans to use a presentation consistent with mate...
Larsen & Toubro Deepens AI Push with New Compute Infrastructure Subsidiary
Jun 20, 2026
Larsen Toubro’s wholly owned subsidiary Vyoma.AI Limited has incorporated LTN Compute Private Limited as a wholly owned step-down subsidiary, with an authorised and subscribed capital of ₹1,00,000, to be based in India. The new entity...
Larsen & Toubro Posts Record Orders and Unveils Lakshya 2031 Strategy
Jun 6, 2026
Larsen Toubro has reported a year of steady progress in FY 2025-26, highlighting record order inflows, a stronger order book, double-digit revenue and profit growth, and a healthier balance sheet, supported by improved net debt metrics and a prop...
Larsen & Toubro moves to transfer long-unclaimed shares to IEPF
Jun 6, 2026
Larsen Toubro has notified stock exchanges that it has published newspaper advertisements in Financial Express and Loksatta regarding the completion of dispatch of notices linked to the Investor Education and Protection Fund (IEPF). The company h...
Larsen & Toubro Shareholders Clear All Resolutions at 81st AGM
Jun 5, 2026
Larsen Toubro Limited held its 81st Annual General Meeting on June 5, 2026 via video conferencing, in line with MCA and SEBI guidelines and the Companies Act, with all directors and key auditors in attendance. The meeting covered adoption of the ...
Larsen & Toubro Reschedules Investor Conference Slot, Details June Analyst Meets
May 28, 2026
Larsen Toubro has announced an updated schedule for its upcoming analyst and institutional investor engagements, highlighting its continued outreach to the investment community. The company’s participation in the ICICI Securities India Inve...
Larsen & Toubro Announces Scheduled Exit of Independent Director Sanjeev Aga in 2026
May 24, 2026
Larsen Toubro Limited has announced that independent director Sanjeev Aga will conclude his tenure on May 24, 2026, upon completion of his second and final term on the board. The company has formally notified the BSE and NSE in line with SEBI dis...
L&T’s Buildings & Factories Arm Wins Large High-Rise and Luxury Real Estate Orders Across Three States
May 7, 2026
Larsen Toubro’s Buildings Factories vertical has secured a set of large real estate orders from a key client, spanning projects in Telangana, Maharashtra and Karnataka. The win underscores the unit’s strong positioning in high-rise a...
L&T Wins Record ‘Mega’ Metals Order from JSW Steel to Power Capacity Expansion
May 6, 2026
LT’s Minerals Metals business has secured its largest-ever order in India’s domestic metals sector from JSW Steel, underscoring the conglomerate’s strength in executing large, complex metallurgical projects. The contract, classi...
L&T Names Incoming CFO as Key Managerial Personnel for Market Disclosures
May 5, 2026
Larsen Toubro has designated its incoming Chief Financial Officer, P. Ramakrishnan, as a key managerial personnel empowered to assess the materiality of corporate events and information. Under the company’s materiality policy and in line wi...
L&T Lifts Dividend, Clears FY26 Results and Reshapes Top Finance, Board Roles
May 5, 2026
Larsen Toubro’s board has approved the consolidated and standalone audited financial results for the quarter and year ended March 31, 2026, alongside plans to circulate its FY 2025-26 integrated annual report electronically in line with reg...
Larsen & Toubro Allots 35,981 Equity Shares Under ESOP
May 5, 2026
Larsen Toubro Limited’s Nomination Remuneration Committee has approved the allotment of 35,981 equity shares to employees who exercised options under the company’s Employee Stock Option Schemes. These newly allotted shares will rank ...
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.