L&T Results Review: Mumbai-headquartered Larsen & Toubro (L&T) on Tuesday (May 5) reported its results for the quarter ended March 31, FY26. The company’s performance was broadly in line with market expectations, although it reflected some weakness on a standalone basis.
For the March quarter, L&T reported a 3 per cent year-on-year decline in consolidated profit after tax (PAT) to Rs 5,326 crore. Despite the dip in profitability, both revenue and EBITDA largely met analysts’ estimates.
Revenue from operations during the January-March period rose 11 per cent year-on-year to Rs 82,762 crore, compared to Rs 74,392 crore in the corresponding quarter last year, indicating steady topline growth.
L&T Order Book Hits Record High
As an EPC (Engineering, Procurement, and Construction) company, L&T’s order book remains a key indicator of future revenue visibility and business strength.
In this regard, the company’s order book emerged as the highlight of the quarter. L&T reported a consolidated order book of Rs 7,40,327 crore as of March 31, 2026, an all-time high, underscoring robust long-term business visibility.
Order inflows for Q4 FY26 stood at Rs 89,772 crore, marginally higher compared to the same quarter last year. However, on a sequential basis, order inflows declined sharply by nearly 34 per cent, indicating some near-term moderation in new project wins.
| Segment | Share |
| Middle East Exposure | 40% |
| Share of International Orders | 78% |
Additionally, the company also reported a healthy book-to-bill ratio of 2.6x, indicating strong order momentum relative to revenue execution. Book-to-bill compares new orders received to revenue earned in a period. A ratio above 1 means the company is winning more business than it is executing, boosting future growth visibility
Middle East Exposure Raises Concerns
L&T remains significantly exposed to developments in the Middle East, a key market for its engineering and construction business. Notably, 40 per cent of its total order book as of March 31, 2026, is linked to the region, accounting for 78 per cent of its total international orders.
Recent geopolitical tensions in the region, particularly the escalation involving the United States and Iran, have weighed on investor sentiment.
Since the onset of the conflict, L&T’s stock has declined by around 3 per cent. Although prices have seen a modest recovery in recent sessions, the stock had experienced sharper losses earlier, reflecting heightened market volatility driven by geopolitical concerns.
Operations Stable, But Costs Rising
Despite these concerns, the company’s management has maintained a positive outlook. It stated that all projects in the Middle East are currently operating as usual, with no cancellations reported so far.
However, ongoing geopolitical tensions have begun to impact operational dynamics, particularly through sharply rising logistics and insurance costs across the region.
L&T Share Price Target 2026
Goldman Sachs Maintains ‘BUY’
Goldman Sachs has maintained a ‘Buy’ rating on L&T, with a target price of Rs 4,370, implying an upside of 11 per cent from current levels.
The brokerage highlighted that management is guiding for 10–12 per cent growth in FY27. While margins were impacted due to legacy cost inflation, strong order inflows continue to support the outlook. Growth drivers include defence, green hydrogen, data centres, and the Lakshya 31 strategy roadmap.
Emkay Downgrades to ‘ADD’
Emkay has downgraded the stock to ‘Add’ from ‘Buy’ and reduced its target price from Rs 4,800 to Rs 4,450. However, this still implies a potential upside of 13 per cent.
The brokerage noted that Q4 FY26 performance missed estimates due to weak execution and margin pressures. While domestic execution lagged, order inflows remained strong.
Nuvama Recommends ‘HOLD’
Nuvama has maintained a ‘Hold’ rating on the stock, lowering its target price to Rs 4,050 from Rs 4,400. This suggests a modest upside of 2.8 per cent.
According to the brokerage, challenges in the Middle East could slow growth and execution. The outlook will depend on order pipeline strength, regional stability, geographic diversification, and margin recovery.
| Brokerage | Rating | Target Price | Upside Potential |
| Goldman Sachs | Buy | 4,370 | ~11% |
| Emkay | Add | 4,450 | ~13% |
| Nuvama | Hold | 4,050 | ~2.8% |
L&T Share Price
The stock has recently shown signs of volatility. It declined by 3.2 per cent and is currently trading at Rs 3,927.30. During the session, it slipped as low as Rs 3,900, marking a downside of around 4 per cent from the previous close of Rs 4,056.15.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
