Engineering and infrastructure powerhouse Larsen & Toubro (L&T) kicked off FY26 with an impressive first-quarter performance, pushing its stock price up 4.4% intraday to ₹3,650.90 on July 30, 2025. The rally followed upbeat earnings and bullish analyst sentiment, placing L&T among the day’s top gainers on the Nifty 50 index.
Key Financial Highlights – Q1 FY26
- Net Profit: ₹3,617 crore, a 30% year-on-year jump
- Revenue: ₹63,679 crore, up 15.5% YoY
- Order Inflow: ₹94,453 crore, up 33% YoY
- International Orders: ₹48,675 crore (52% of total)
- Domestic Orders: ₹45,778 crore (up 22%)
- Order Book: ₹6.13 lakh crore, a 6% increase since March 2025
- Return on Equity: 17%, approaching the company’s FY26 target of 18%
- Net Working Capital Ratio: 10%, lowest in a decade
Revised Analyst Targets
Brokerages have responded with upgraded price targets:
| Brokerage | Rating | Revised Price Target | Commentary |
|---|---|---|---|
| Motilal Oswal | Buy | ₹4,200 | Strong order book, earnings beat |
| Jefferies | Buy | ₹4,230 | Margin expansion via hydrocarbon business |
| CLSA | Outperform | ₹4,176 | Execution & working capital surprises |
| JM Financial | Buy | ₹4,313 | Confidence in Middle East projects |
| ICICI Securities | Buy | ₹4,450 | Re-rating potential in core businesses |
| Emkay Global | Buy | ₹4,000 | Attractive valuation, steady growth outlook |
Strategic Takeaways
L&T’s Hydrocarbon division is showing strength, boosting margins and profitability. Its execution of large-scale infrastructure contracts, especially overseas, has impressed analysts. The firm’s five-year strategy, ‘Lakshya,’ is nearing completion with key milestones achieved in efficiency and returns.
Experts believe L&T can exceed its full-year targets for order inflow and revenue growth, signaling potential upside ahead.
Investor Outlook
With strong fundamentals, an expansive order book, and disciplined capital management, L&T is being viewed as a standout performer in India’s industrial sector for FY26. Analysts widely agree: it’s a stock to watch as infrastructure demand and global project momentum build.
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