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L&T rises 4% on posting Q1 results; most brokerages raise target price
Around 10:09 AM, L&T share price was up 3.55 per cent at ₹1,244 per share. In comparison, Sensex was up 0.23 per cent at 81,522.2.
L&T Q1 results
Engineering and construction conglomerate Larsen & Toubro's (L&T's) profit (attributable to owners of the company) for the first quarter (Q1) of 2025-26 (FY26) grew by 29.8 per cent year-on-year (Y-o-Y) to ₹3,617.2 crore, as against ₹2785.72 crore a year ago.
Its revenue from operations for Q1FY26 increased by 15.5 per cent Y-o-Y to ₹63,678.92 crore, as compared to ₹55,119.82 crore a year ago. Track Stock Market LIVE Updates
Brokerages' view on L&T
Motilal Oswal has maintained a 'Buy' rating on L&T and raised the target to ₹4,200 per share, from ₹4,100. The brokerage is upbeat on L&T as the results were ahead of its estimates and the order book remained strong.
In Q1, L&T's order inflow grew 41 per cent year-on-year (Y-o-Y) to ₹76,600 crore, driven by international geographies (25 per cent Y-o-Y) and large order wins in power boiler, turbine, and generator (BTG). Domestic inflow was up 22 per cent Y-o-Y, and international project inflow was up 69 per cent Y-o-Y during the quarter.
Nuvama Institutional Equities has also reiterated 'Buy' and has increased the target to ₹4,200 per share from ₹4,000 as a growing order book, coupled with a robust pipeline, support long-term prospects.
JM Financial Institutional Securities continued with a 'Buy' on L&T and increased the target to ₹4,313 per share from ₹3,850. JM Financial is reasonably confident of L&T exceeding its order inflow target of 10 per cent growth based on a multi-year uptick in Middle East tendering.
L&T has delivered a trailing twelve-month return on equity (TTM ROE) of 17 per cent in Q1FY26, close to its FY26 target of 18 per cent, driven partly by a further reduction in Net Working Capital (NWC) to sales level to a decadal low of 10 per cent. ICICI Securities maintained 'Buy' rating with a target of ₹4,450 per share. The brokerages expects L&T stock to re-rate on improving core earnings growth.
Emkay Global Financial Services has also reitered its 'Buy' call with a target of ₹4,000 per share. L&T is trading at a core plant and machinery (P&M) multiple of 27x/22x FY26E/27E earnings per share (EPS), and offers an attractive risk-reward, according to the brokerage.
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