Business

IIE DIGITAL DESK : Mumbai, July 30, 2025 — Larsen & Toubro Limited (L&T), India’s leading infrastructure conglomerate, delivered a strong start to FY2026 with its June-quarter results that beat analyst consensus across multiple fronts. The company’s robust financial performance has prompted nine brokerage firms to raise their price targets, with the median now at ₹4,070.50 per share. This marks fresh investor confidence and financial validation of the firm’s growth strategy. 

L&T posted a 30% year‑on‑year leap in consolidated net profit, reaching ₹3,617 crore ($416.7 million), comfortably exceeding the Street’s forecast of ₹3,368 crore. Revenue rose 16% YoY to ₹63,679 crore, surpassing estimates as international project execution underpinned top-line strength. 

A standout metric was the company’s record quarterly order inflow of ₹94,453 crore, up sharply from 8% growth in the corresponding quarter last year and 24% in the previous quarter. Analysts highlight this as evidence of a strong and sustained project pipeline. 

More than half of L&T’s new orders—52%—originated from overseas operations, compared to 46% a year ago. This underscores the company’s strategic shift to global markets amid muted domestic tendering. While such fixed-price international contracts could pressure margins, L&T’s management holds a positive long-term view. 

Following the results, shares of L&T jumped up to 4.5% intraday, reaching ₹3,652.70 on BSE, making it the top percentage gainer on the Nifty 50 index and boosting the infrastructure index by 0.6%. 

Market sentiment turned sharply bullish, with 29 analysts maintaining a ‘Buy’ rating. Median price targets have climbed to ₹4,070.50, reflecting strong belief in L&T’s fundamentals. Emkay Research and Antique Stock Broking emphasized the firm’s robust order flow and alignment with India’s infrastructure-led economic priorities. 

Analyst previews had suggested a potential PAT growth of 23% YoY and possible 15–17% increase in revenue, driven by sustained execution across engineering and infrastructure segments. Revenues were projected at around ₹63,450 crore, with EBITDA margins anticipated at ~10.2%. 

The strong results come amid a challenging environment for domestic infrastructure demand, but L&T’s execution of international contracts and growing global footprint helped offset softness at home. Despite potential margin pressure from fixed-price foreign jobs, the company forecasts an improvement in core engineering EBITDA margin—to about 8.5% for FY26, up from 6.4% in FY25—assuming commodity prices remain stable. 

Looking ahead, investors and analysts will be watching three factors closely: continued order momentum, margin recovery trajectory, especially in international segments, and clarity on domestic capex cycle revival. While domestic tendering remains sluggish, L&T’s strong project pipeline provides near-term visibility and bolsters confidence in sustained earnings growth. 

 L&T’s Q1FY26 performance reflects a company successfully leveraging international markets, delivering above‑expectation growth and order-book strength. Investor optimism is palpable, with multiple brokerages raising targets and reaffirming ‘Buy’ ratings. The ₹4,000-plus price outlook underscores confidence in L&T’s pivotal role in India’s infrastructure roadmap and its expanding global presence.

L&T’s Q1 results reinforce its growth credibility—a 30% jump in profit, record orders, and rising overseas business underlie its resilient performance. With earnings momentum backed by a strong order pipeline and improved margin outlook, analysts see the stock positioned for further upside in the current financial year.