Larsen & Toubro Limited (IN:LT)
:LT
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Larsen & Toubro Limited
(LT)
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Rating:66Neutral
Price Target:
₹4,291.00
▲(4.79% Upside)
Action:Downgraded
Date:05/09/26
The score is driven primarily by solid (but not pristine) financials—strong growth tempered by margin pressure, leverage, and uneven cash conversion—alongside a notably positive earnings call with record orders and improved working capital. These positives are partially offset by a demanding valuation and neutral-to-mixed technical signals.
Positive Factors
Large, diversified order book
A INR 7.33tn order book, 30% YoY growth, provides durable revenue visibility across segments and geographies. A deep backlog smooths revenue volatility inherent to EPC cycles, supports multi-quarter resource planning, and underpins medium‑term earnings and utilization.
Negative Factors
Meaningful leverage
Sustained debt levels (D/E >1.0) are typical for large EPC firms but constrain financial flexibility. High leverage raises refinancing and interest risks during cycles, limits room for opportunistic M&A or capex, and amplifies the impact of any cash‑flow setbacks on solvency metrics.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, diversified order book
A INR 7.33tn order book, 30% YoY growth, provides durable revenue visibility across segments and geographies. A deep backlog smooths revenue volatility inherent to EPC cycles, supports multi-quarter resource planning, and underpins medium‑term earnings and utilization.
Read all positive factors
Larsen & Toubro Limited (LT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹5.55T
Dividend Yield0.84%
Average Volume (3M)158.84K
Price to Earnings (P/E)22.6
Beta (1Y)1.23
Revenue Growth11.79%
EPS Growth15.95%
CountryIN
Employees54,303
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)123.96
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
₹4,618.33Price Target Upside12.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)147.07
Revenue Forecast (FY)₹3.22T
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 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:Jan 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 28, 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
74
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.74T | 2.86T | 2.60T | 2.25T | 1.86T | 1.59T |
| Gross Profit | 846.09B | 364.86B | 949.77B | 839.74B | 727.93B | 613.70B |
| EBITDA | 317.06B | 291.51B | 297.04B | 268.39B | 231.50B | 199.98B |
| Net Income | 163.99B | 160.84B | 150.37B | 130.59B | 104.71B | 86.69B |
Balance Sheet | ||||||
| Total Assets | 3.91T | 4.53T | 3.80T | 3.40T | 3.30T | 3.20T |
| Cash, Cash Equivalents and Short-Term Investments | 631.24B | 803.73B | 604.34B | 486.32B | 544.37B | 460.25B |
| Total Debt | 1.34T | 1.25T | 1.32T | 1.16T | 1.21T | 1.26T |
| Total Liabilities | 2.71T | 3.24T | 2.64T | 2.37T | 2.27T | 2.25T |
| Stockholders Equity | 1.01T | 1.09T | 976.56B | 863.59B | 893.26B | 824.08B |
Cash Flow | ||||||
| Free Cash Flow | 11.41B | 120.11B | 47.42B | 137.50B | 186.33B | 160.53B |
| Operating Cash Flow | 38.16B | 168.20B | 91.61B | 182.66B | 227.77B | 191.64B |
| Investing Cash Flow | 10.56B | -156.82B | -155.18B | 21.63B | -83.12B | -36.68B |
| Financing Cash Flow | -74.85B | 17.07B | 65.57B | -254.13B | -115.72B | -151.81B |
Larsen & Toubro Limited Technical Analysis
Positive
4094.95
Price Trends
3822.91
Positive
3917.10
Positive
3848.23
Positive
Market Momentum
23.84
Negative
60.51
Neutral
93.31
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 4094.95 is above the 20-day moving average (MA) of 3946.88, above the 50-day MA of 3822.91, and above the 200-day MA of 3848.23, indicating a bullish trend. The MACD of 23.84 indicates Negative momentum. The RSI at 60.51 is Neutral, neither overbought nor oversold. The STOCH value of 93.31 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹129.52B | 16.34 | ― | 2.51% | 39.19% | 86.76% | |
66 Neutral | ₹5.55T | 22.63 | ― | 0.84% | 11.79% | 15.95% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | ₹131.86B | 18.22 | ― | 1.56% | -15.69% | -18.10% | |
50 Neutral | ₹118.68B | 39.72 | ― | 0.65% | -4.78% | -50.23% | |
48 Neutral | ₹57.50B | 18.31 | ― | ― | -29.16% | 44.18% | |
48 Neutral | ₹132.87B | 17.66 | ― | 0.74% | 7.59% | 4.98% |
* Industrials Sector Average
IN:LT
Larsen & Toubro Limited
4,045.80
468.65
13.10%
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Larsen & Toubro Limited Corporate Events
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 ...
L&T Enters B2B Industrial Electronics With New Coimbatore Manufacturing Hub
Apr 24, 2026
Larsen Toubro has entered the B2B industrial electronics market with the launch of industrial electronics manufacturing at its Coimbatore campus in Tamil Nadu. The new business vertical, LT Electronic Products Systems, will be headquartered in B...
Larsen & Toubro Bags Significant EPC Orders for High-Rise Housing and Vehicle Test Facility
Apr 23, 2026
Larsen Toubro’s Buildings Factories business has secured multiple significant orders in India, underscoring its strong position in the construction and EPC space. The wins span high-rise residential development and specialized automotive t...
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...
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.