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Larsen & Toubro's Q1 earnings exceeded estimates, boosting order book visibility and growth prospects
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Seventeen of 19 brokerages rated L&T shares as buy following Q1 results, per Bloomberg
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Investec set highest target price at Rs 4,460, citing strong order inflows and working capital management
Larsen & Toubro Ltd. received multiple target price hikes from brokerages, including Goldman Sachs, after its first-quarter earnings beat estimates and provided a strong visibility for order book and business growth.
Of the 19 brokerages tracking the company and sharing their recommendation after the Q1 results, 17 place a 'buy' rating and one each has a 'sell' and a 'hold', as per Bloomberg.
Investec has the highest target price of Rs 4,460 on L&T shares, followed by ICICI Securities' Rs 4,450 and JM Financial's Rs 4,313.
L&T Q1 FY26 Recap (Consolidated, YoY)
Revenue from operations up 15.5% to Rs 63,678.91 crore versus Rs 55,119.82 crore (Bloomberg estimate: Rs 62,814 crore).
Ebitda up 13% to Rs 6,317.66 crore versus Rs 5,615.29 crore (Estimate: Rs 6,342 crore).
Ebitda margin stood at 9.9% versus 10.2% (Estimate: 10.1%).
Net profit up 29.8% to Rs 3,617.19 crore versus Rs 2,785.72 crore (Estimate: Rs 3,400 crore).
The consolidated order book of the L&T group as of June 2025 stood at Rs 6.12 lakh crore, registering a growth of 6% over March 2025, with the share of international orders steady at 46%.
The order inflow for the quarter stood at Rs 94,453 crore, registering growth of 33% aided by energy projects. International orders stood at Rs 48,675 crore during the quarter, constituting 52% of the total inflows.
Top Brokerage Calls
Investec
Maintained 'Buy'; hiked target price to Rs 4,460 from Rs 4,115.
Beats on most fronts; strengthens confidence further.
Order inflows robust; strong visibility.
Impressive working capital mgmt.
L&T has won multiple orders in the Middle East, which should be booked in Q2, and feel it is likely to surpass its guidance.
Goldman Sachs
Maintained 'Neutral'; hiked target price to Rs 3,540 from Rs 3,400.
Q1 Review: Good quarter overall; margin recovery still elusive.
Net working capital-to-revenue remained strong and drove the improvement in RoE.
Market would not worry about order inflow and execution for L&T in the medium term.
Margins which have remained stagnant for a while now may be the key investor focus.
Jefferies
Maintained 'Buy'; hiked target price to Rs 4230 from Rs 3965.
Visibility further rises on growth trajectory.
Q1FY26 Ebitda was 7% ahead of expectations as execution was higher.
33% YoY rise in order flow puts L&T in a comfortable position to meet its annual 10% year-on-year growth guidance.
Higher contribution from hydrocarbon gives comfort on margins having some uptick potential.
Revenue guidance of 15% YoY looks low, given the order book growth.
Believe L&T price should offset the 8% 1-yr underperformance to Nifty ahead.
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