Stock Market Today: Larsen & Toubro (L&T) share price gained 4% in the morning trade on Wednesday, following the announcement of its Q1 results after market hours in the previous trading session.
The construction major was among the top-performing stocks in the Sensex pack in the early trading session.
L&T Q1 Results
L&T reported strong results for the first quarter of fiscal year 2025-26 (FY26) on Tuesday, July 29, with double-digit growth in both the bottom and top lines, led by good execution as order inflows impressed further.
LT’s Q1 consolidated net profit (attributable to shareholders) was ₹3,617.19 crore, up 29.8% from ₹2,785.72 crore the previous year.
The construction major recorded a 16% YoY increase in its June quarter revenue to ₹63,679 crore due to strong execution in its primary Projects & Manufacturing (P&M) business. During the quarter, international revenues totaled ₹32,994 crore, or 52% of total revenues.
In the first quarter of FY26, the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 13% to ₹6,318 crore from ₹5,615 crore in the previous year. However, margins fell to 9.9% from 10.2% on a YoY basis.
L&T order inflows impress, boost sentiments
L&T reported a 33% YoY gain in new orders of ₹94,453 crore at the group level for the quarter ending June 30, 2025. This increase was fueled by robust demand across a variety of business areas.
Analysts at JM Financial Institutional Equities said that L&T delivered a strong positive surprise with order inflows that were materially higher than their estimate of ₹56,600 crore. JM Financial is reasonably confident of L&T exceeding its order inflow target of 10% growth based on a multi-year uptick in Middle East tendering.
The company obtained contracts for thermal power (BTG), renewable energy, power transmission and distribution, hydropower, non-ferrous metals, hydrocarbons (both offshore and onshore), and commercial and residential construction.
L&T Q1FY26 results beat estimates
L&T’s QFY26 revenue and net profit beat Motilal Oswal Financial Services’ (MOFSL) estimates by 3% and 8%, respectively.
Results indicated a sharp outperformance on core E&C order inflows at around ₹76,600 crore (upwards of MOFSL estimates of ₹63,100 crore), driven by large order wins in energy and infrastructure segments in both domestic and international markets. There was outperformance on execution with 19% YoY growth versus MOFSL estimates of 13% growth, primarily driven by ramp-up in international projects. Also, the firm witnessed sustainability of NWC at lower levels of 10.1% of sales and the RoE improvement to 17%.
Jefferies India Pvt Ltd said that the Q1FY26 EBITDA was 7% ahead of expectations, as execution was higher. A 33% YoY rise in order flow puts L&T in a comfortable position to meet its annual 10% YoY growth guidance, according to the global brokerage.
L&T share price: Analysts’ recommendations
Jefferies India said that higher contribution from hydrocarbons gives comfort on margins, having some uptick potential. “FY26 revenue guidance of 15% YoY looks low, given the order book growth. L&T share price should offset the 8% 1-year underperformance to Nifty ahead,” said Jefferies, while retaining a ‘buy’ rating with a target price of ₹4,230 (from ₹3,965 earlier).
L&T JM Financial’s top pick in the infrastructure space. The brokerage values L&T stock on SOTP basis at ₹4,313, which implies a reasonable core FY27 price-to-earnings ratio of 27 times and 20% core earnings share growth CAGR over FY25-27.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
