Larsen & Toubro Limited (LT) AI Stock Analysis

• Market Cap: ₹5.06T
• Dividend Yield: 0.93%
• Average Volume (3M): 114.84K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.16
• Revenue Growth: 15.74%
• EPS Growth: 18.90%
• Country: IN
• Employees: 54,303
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 26.29
• Shares Outstanding: 1,375,511,800
• 10 Day Avg. Volume: 152,987
• 30 Day Avg. Volume: 114,842
• PEG Ratio: 2.55
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 1.91
• 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: ₹4,121.75
• Price Target Upside: 12.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: ₹3,902.00 ▲(6.15% Upside)

Larsen & Toubro Limited's overall stock score is driven by strong financial performance, particularly in revenue growth and profitability. Technical indicators suggest a neutral trend with some bearish momentum. The valuation indicates moderate pricing with limited dividend yield. The absence of earnings call and corporate events data did not impact the score.

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 makes money through a variety of revenue streams across its diverse business segments. The core revenue comes from its engineering and construction division, which manages large infrastructure projects such as roads, bridges, metro systems, and airports. The heavy engineering division contributes through the manufacturing of critical equipment for sectors like oil and gas, defense, and aerospace. LT's power and electrical business generates income by providing equipment and solutions for power generation and distribution. Additionally, the company earns revenue through its IT and technology services, offered under its subsidiary, L&T Infotech, which caters to clients globally. Financial services, including infrastructure finance and insurance, also form a significant part of its earnings. Strategic partnerships with governments, international corporations, and joint ventures further bolster its revenue generation capabilities.

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 for enhanced stability. 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	2.64T	2.55T	2.19T	1.83T	1.56T	1.34T
Gross Profit	735.80B	399.89B	730.87B	319.18B	300.45B	520.88B
EBITDA	321.73B	379.54B	339.78B	236.71B	204.88B	189.54B
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: Positive
• Last Price: 3675.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3675.85 is above the 20-day moving average (MA) of 3591.32, above the 50-day MA of 3577.75, and above the 200-day MA of 3492.21, indicating a bullish trend. The MACD of 18.09 indicates Negative momentum. The RSI at 60.83 is Neutral, neither overbought nor oversold. The STOCH value of 89.75 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIEMENS	74 Outperform	1.18T	48.34	17.69%	0.36%	-13.58%	-0.28%
HAL	73 Outperform	3.29T	39.55	23.91%	0.81%	2.07%	0.81%
CGPOWER	72 Outperform	1.23T	118.86	25.35%	0.17%	25.71%	-31.59%
BEL	70 Outperform	2.99T	54.34	26.64%	0.59%	14.23%	29.82%
LT	68 Neutral	₹5.06T	27.34		0.93%	15.74%	18.90%
MAZDOCK	66 Neutral	1.20T	55.52	30.40%	0.58%	21.24%	-6.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Larsen & Toubro Limited Corporate Events

L&T Secures Major Contract with Adani Power for Thermal Power Units

Larsen & Toubro (L&T) has secured an ultra-mega contract from Adani Power Ltd to set up eight thermal power units, totaling 6,400 MW. This project, executed by L&T Energy – CarbonLite Solutions, reinforces L&T’s role in India’s energy infrastructure, leveraging its engineering and execution capabilities to support Adani Power’s vision of delivering efficient energy across India.

Larsen & Toubro Ensures Regulatory Compliance with SEBI Regulations

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 June 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 practices.