L&T Q3 Results Preview: Earnings To Get Boost From Improved Project Executions

Larsen & Toubro Ltd. is likely to report a strong earnings growth, led by improvement in project execution in Middle East and domestic market.

The revenue of India's largest engineering and construction company is expected to rise 17.4% YoY to Rs 64,742 crore, according to consensus estimates of analysts tracked by Bloomberg.

L&T is not only well-placed to deliver on its guidance parameters in FY25 (especially 10% YoY order inflow growth), but its strength could continue into FY26, BNP Paribas said in a report.

"We also expect L&T to deliver on core Ebitda margins and further reduction in net working capital," the BNP report added.

L&T will report its third quarter earnings on Thursday.

• Revenue seen up 17.4% YoY to Rs 64,742.3 crore vs Rs 55,127.82 crore a year ago.

• Ebitda seen up 17.7% YoY to Rs 6,779.03 crore vs Rs 5,759.0 crore a year ago.

• Ebitda margin expected to expand to 10.5% vs 10.4% a year ago.

• Net profit seen up 28% YoY to Rs 3,771.2 crore vs Rs 2,947.4 crore a year ago.

Brokerages expect L&T to continue to benefit from international investments on energy and infrastructure and a potential revival in domestic spending, even as it maintains a strong control over the working capital.

Sectors such as renewables, transmission, production linked incentives and defence would continue to witness robust traction, wherein the government has already initiated policy measures that provide long-term visibility to the capital goods companies including L&T, Motilal Oswal said in a note.

Capital goods companies are sitting on healthy order books, which should provide visibility for a healthy revenue CAGR going forward.

BNP Paribas said it is surprised with investors’ concern on L&T’s order intake prospects and execution of Middle East projects. "We don’t foresee any slowdown in Middle East capex in FY26 and beyond."

In the domestic market, the spends on thermal power generation, power transmission, metro and semi-high-speed rail, infrastructure, real estate and healthcare sectors are likely to drive the company’s domestic order inflow growth, brokerages said.