Larsen & Toubro Ltd. share price target

We recently interacted with Mr. S. N. Subrahmanyan, Chairman and MD of Larsen & Toubro (LT), to get insights into the company’s long-term growth strategy for domestic and international geographies, capital allocation and future focus areas.

L&T's performance in Q2FY26 was robust, with strong growth in order inflow and revenue increase in all segments, except for infrastructure projects. The company anticipates healthy revenue growth and a significant increase in order inflow, indicating a promising performance in the future. Furthermore, its healthy order book is expected to drive strong performance in the upcoming quarters. The government's continued investment in infrastructure and the manufacturing sector is likely to provide substantial growth opportunities for the company, bolstering its prospects for sustained success. Recent strategic MOUs and partnerships in the...

Q2FY26 performance: L&T secured robust order inflows (OI) of 115784 crore up 45% YoY and up 23% QoQ, led by energy business which formed 35% of OI. The current order backlog (OB) stands at 667,047 crore up 31% YoY (49% international). Strong execution in the Energy Projects and Hi-tech manufacturing (revenues up 48% and 34% YoY) led to consolidated revenue growing by 10% YoY to 67984 crore for Q2FY26. Consolidated EBITDA grew 10% YoY to 6806 crore and EBITDA Margins came in at 10% down 30 bps YoY due to margin compression in IT & TS segment and energy projects. Consequently, PAT came in at 3926 crore up 16% YoY. On strong customer collection, the NWC ratio to sales improved significantly (200...

Our recent meeting with LT reinforces our thesis that execution growth will remain strong for the company over the next few years, driven by a strong order book. The company is selectively eyeing projects from domestic markets and expects international ordering to keep supporting growth.

L&T delivered a strong performance in the quarter, with revenue growth across all segments except for the Development Projects segment, accompanied by a robust *over or under performance to benchmark index increase in order inflow and a rise in profit. The company's outlook appears positive, driven by a growing project pipeline for the remaining nine months. Furthermore, L&T expects to achieve revenue growth of 15% and order inflow growth of 10% in FY26, indicating a promising performance in the upcoming quarters. A stable macroeconomic environment, strong government capital expenditure, and digital...

Management has guided for a ~10% order intake growth and ~15% revenue growth with P&M margin of 8.3%-8.5% in FY26. Larsen & Toubro (L&T) reported consol. revenue growth of 15.5% YoY, while EBITDA margin declined by 27bps YoY to 9.9%. Strong prospects in domestic as well as international markets across key segments such as Hydrocarbon, Transmission & Distribution, Renewable Energy & Heavy Civil continue to drive presence in the Middle East. During the quarter, L&T also acquired the semiconductor power module business from Japan's Fujitsu General and...

Larsen & Toubro (L&T) continues to beat order inflow (OI) expectations. It secured INR 766bn worth of orders in its core businesses (ex-services), up 40% YoY – aided by the energy (3.5x YoY; 41% of OI) and infrastructure (+2% YoY; 53% QoQ) segments.

Largest and most diversified infrastructure story is on the move

LT’s annual report of 2025 highlighted its consistent focus on diversifying revenue streams, exploring new opportunities and enhancing return profile.

Management guided for a ~10% order intake growth and ~15% revenue growth with P&M margin of ~8.5% in FY26. Larsen & Toubro (L&T) reported consol. revenue growth of 10.9% YoY, while EBITDA margin improved 24bps YoY to 11.0%. L&T continues to exhibit strong growth prospects across key segments such as Hydrocarbon, Heavy Civil, Transmission & Distribution, and Renewable Energy, both in domestic and international markets. Notably, its recent ultra-mega order from Qatar Energy underscores its growing presence in the Middle East. Furthermore, L&T's...

Larsen & Toubro (L&T) is India’s premier engineering and construction conglomerate, excelling in EPC, manufacturing, and services across diverse industrial and infrastructure segments.

L&T, the engineering conglomerate, by virtue of its leadership and commendable execution track record in the engineering, procurement and construction (EPC) domain is well poised to benefit from the capex upcycle in both public and private sectors.

Healthy order inflows of Rs. 28,000-47,500 crore during Q2FY2025 led by two mega orders from the Middle East, which comprise over 60% of the order intake.

LT’s 1QFY25 results were 3% ahead of our estimates on both revenue and PAT. The company reported 15%/15%/12% YoY growth in revenue/EBITDA/PAT on a consolidated basis.