Larsen & Toubro Limited (LT)
Large CapInfra stocks · Large cap · NSE
Larsen & Toubro Limited (LT) is an Indian conglomerate engaged in Projects and Manufacturing, IT and Technology Services, Financial Services, Development Projects, and Realty. It operates primarily in India and the Middle East, focusing on infrastructure, energy, and high-tech manufacturing.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 27/100margin compression · Rev +7% YoY · PAT +16% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹67,942 Cr | +6.7% | -17.9% |
| EBITDA | ₹8,149 Cr | +1.6% | -21.8% |
| Operating margin | 12.0% | -100 bps | -100 bps |
| PAT | ₹4,988 Cr | +15.5% | -18.7% |
| PAT margin | 7.3% | +56 bps | -7 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q4 FY26 order inflows broadly flat YoY, group revenues up 11% YoY, and recurring PAT up 5% YoY. Full year FY26 order inflows significantly surpassed guidance, while revenue growth missed target due to West Asia conflict and domestic project delays.
L&T delivered strong FY26 order inflows, surpassing guidance, and built a robust order book. Q4 revenue and P&M margins were impacted by West Asia conflict disruptions and domestic project delays. Management expects H1 FY27 to be subdued but anticipates H2 pickup and has a clear long-term strategic plan (Lakshya 31) with significant capex in new growth areas.
Energy Transition & Core National Infrastructure
Benefited from ongoing opportunities in energy transition and core national infrastructure projects in the Middle East.
Domestic Private Sector Ordering
Strong momentum in Buildings and Factories, Minerals and Metals, and Heavy Civil Infrastructure businesses.
Data Center Business (L&T Vyoma)
Commissioned 12 MW capacity at Kanchipuram, with an additional 6 MW at an advanced stage of commissioning, bringing total to 30 MW.
Green Energy (Lakshya 31)
Development Projects portfolio reoriented towards asset ownership in Green Hydrogen and Green Ammonia manufacturing facilities under a BOO framework.
Data Center Capacity
Commissioned 12 MW at Kanchipuram, with an additional 6 MW at an advanced stage, bringing total available capacity to 30 MW. Target 200 MW over time.
Hydrocarbon Modular Fabrication Yard & Shipbuilding Facility
Plan to invest around Rs 50 billion for upgradation.
Indian Economic Growth
FY27 expected around 6.9%, supported by resilient household demand, sustained public capital expenditure, and continued strength in services.
Middle East Resilience
GCC has demonstrated resilience, underpinned by low public debt levels, substantial foreign exchange reserves, and strong sovereign balance sheets.
Domestic Private Sector Capex
Increasingly structural and sustainable with enterprises sharply focused on disciplined execution and return focus.
Energy Transition Acceleration
Accelerating as a strategic risk hedge, driving opportunities in renewables, battery energy storage systems, and grid infrastructure.
West Asia Conflict
Near-term impact on execution primarily due to supply chain constraints, increased logistics and insurance costs.
Subdued Domestic Project Execution
Subdued execution progress in certain domestic projects, particularly Water and Effluent Treatment business, and delays from pending clearances.
Global Economic Fragmentation
Continues to influence trade flows, investment activity, and overall sentiment.
Geopolitical Developments
External headwinds including geopolitical developments, global energy supply dynamics, and financial market volatility.
Supply Chain Disruptions
The biggest risk from the West Asia conflict, impacting material movement and execution, though continuously improving.
Inflation and Logistics Costs
Logistics and insurance costs have increased materially; active discussions with clients to seek appropriate relief.
Legacy Project Cost Overruns
Cost overruns and closeout costs in legacy projects impacted the Energy segment margin in Q4 FY26.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY is crucial for assessing annual performance and comparing against previous fiscal periods, especially for full-year targets. QoQ (or sequential trends) is relevant for understanding the immediate impact of geopolitical events and project execution momentum, particularly for Q4 which is a peak execution period.
Order Inflows (Q4 FY26)
Rs 898 billion, broadly in line with Q4 FY25 levels. Projects and Manufacturing portfolio recorded Rs 699 billion, down 3% YoY.
Order Inflows (FY26)
Significantly surpassed the guided growth of 10% for FY26, driven by strong order wins across multiple sectors.
Order Book (as of March 2026)
Rs 7.40 trillion, a 28% YoY increase, providing strong revenue visibility.
Group Revenues (Q4 FY26)
Rs 828 billion, registered a YoY growth of 11%.
FY27 Guidance
Expects group order inflows and revenue to grow in the range of 10% to 12%. Projects, Products and Manufacturing (PP&M) margin expected to be stable at 7.8%. Working capital around 10%.
Lakshya 31 (FY27-FY31) Targets
Targeting order inflow CAGR of 10-12%, revenue growth of 12-15%, and Return on Equity in the range of 16-17%.
H1 FY27 Outlook
Anticipates a softer first half primarily due to current supply chain disruptions, with a pickup happening in the second half as constraints ease.
Middle East Capex Outlook
Capex narrative is quite positive; expects many more projects to be announced in the next few quarters.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth (H1 FY27) | Anticipated softer H1 FY27 due to supply chain disruptions. | Actual revenue growth in H1 FY27 and signs of pickup in H2 as constraints ease. |
| Middle East Project Execution | Near-term impact on execution due to supply chain constraints. | Easing of supply chain constraints and successful negotiations with clients for cost compensation. |
| Water Projects Execution & Collections | Subdued progress in FY26, with some improvement in collections in Q4. | Sustained improvement in execution momentum and collections in FY27. |
| PP&M Margin Stability | Guided stable at 7.8% for FY27. | Actual margin performance, especially in the Energy segment post closeout of legacy projects. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
53NeutralSMA20 +3.9% / mo · MACD − · sector +2.3pp vs Nifty (3M)
Technical chart
LTdaily · 1Y · AUTO-1.8%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 42.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- Recent death cross (SMA50 crossed below SMA200).
- SMA20 rising (~3.7% over last month) — short-term momentum positive.
- RSI(14) at 42 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 11% off 52W high · 21% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- 10.3% below the 52-week closing high after prior strength.
- The 30-week proxy has stalled (+0.5% over 20 sessions).
- Price has not yet confirmed a full Stage 4 downtrend.
Valuation & score drivers
U-Score 30 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 30 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Quality contributes 10/20 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Fair-value margin of safety is negative at -235.8%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Balance sheet is weaker at 2/15; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 63rd percentile of the scored universe and 69th percentile within Infra. Main check: balance sheet trust is weak at 53/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Debt/equity is 1.15.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Infra: 69th pctile, median 64 · Large: 41st pctile, median 73
161 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1%.
- ▸5 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Debt/equity is 1.15.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 31.00
- P/B
- 4.99
- EV/EBITDA
- 16.51
- Market Cap
- 545407.00Cr
Profitability
- ROE
- 15.90%
- ROCE
- 14.60%
- ROA
- 4.34%
- Dividend Y
- 0.96%
Growth (CAGR)
- Revenue 5Y
- 16.00%
- EPS 5Y
- 3.00%
- Revenue 3Y
- 16.00%
- EPS 3Y
- 17.00%
Balance Sheet
- Debt/Equity
- 1.15
- Interest Coverage
- 3.65×
- Altman Z
- 2.28
- Book Value
- 794.00
Cash Flow
- FCF Yield
- 0.98%
- FCF Positive Y
- 5/5
- OCF
- 16741.00 Cr
- EPS TTM
- 120.59
Shareholding
- Promoter Hold
- —
- Promoter Pledge
- 0.00%
- Momentum 52W
- 59%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Infra — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.