L&T rises 4% after Q1 FY26 results beat estimates; brokerages raise target prices

Larsen & Toubro Share Price: Larsen & Toubro (L&T) shares jumped 4.4 per cent intraday to Rs 3,650.90 on BSE following the announcement of Q1 FY26 earings result. The upbeat performance came amid profit growth, revenue rise, and strong order book gains. 

Q1 FY26 Financial Highlights

• Net profit (attributable to owners): Rs 3,617.2 crore, up 29.8 per cent YoY from Rs 2,785.72 crore

• Revenue from operations: Rs 63,678.92-Rs 63,679 crore, up 15.5-16 per cent YoY

• New orders: Rs 94,453 crore, reflecting a 33 per cent YoY increase. International orders accounted for 52 per cent (Rs 48,675 crore). Domestic orders grew 22 per cent.

Orders & execution

L&T delivered its strongest-ever Q1 order inflow, with its consolidated order book rising to Rs 6.13 lakh crore (a 6 per cent increase since March 2025), with international orders now forming 46 per cent of total orders.

Large wins in BTG (boilers, turbines, generators) and infrastructure projects in international markets contributed significantly to momentum. In the Infrastructure Projects segment, 69% of Rs 41,024 crore inflow came from overseas contracts.

As L&T navigates the terminal year of its ‘Lakshya’ five-year strategic plan, Chairman & Managing Director S.N. Subrahmanyan highlighted strong P&L parameters and improved return ratios.

L&T now trades at a PE multiple of ~27x/22x FY26E/FY27E, based on core plant & machinery earnings.

TTM ROE: 17 per cent, nearing its FY26 target of 18 per cent, supported by improved returns and lower working capital. Net working capital ratio fell to 10 per cent, reaching a decadal low.

Brokerage Inputs

Market Outlook

L&T reaffirmed FY26 guidance targeting 10 per cent order inflow growth and 15% revenue growth. Executing its large backlog, particularly in BTG and international infrastructure, is key. Analyst forecasts estimate a fair value between Rs 4,200 and Rs 4,450 from major brokers.