- Larsen & Toubro reported a 3% decline in consolidated net profit to Rs 5,325.60 crore
- Consolidated revenue rose 11.3% QoQ to Rs 82,762 crore for the quarter ended March
- Operating income increased 5% to Rs 8,611 crore while margin fell to 10.4% from 11%
Shares of Larsen & Toubro will be in focus today, May 6 as the firm released quarterly earnings for the previous fiscal, reporting a 3% fall in consolidated net profit. The bottom line came in at Rs 5,325.60 crore against Rs 5,497.26 crore in the same period last year, according to an exchange filing on Tuesday.
The realty company's consolidated revenue rose 11.3% quarter-on-quarter for the three months ended March, reaching Rs 82,762 crore in comparison to Rs 74,392.28 crore. Operating income, or earnings before interest and taxes rose 5% to Rs 8,611 crore. The margin dropped to 10.4% from the earlier 11% in the same quarter last year.
Brokerages largely remained positive on L&T, while flagging geopolitical tensions. Citing the firm's strong order inflow and healthy working capital, Bernstein retained its 'Outperform' rating at a target price of Rs 4,637, marking a 14.3% upside from the closing price of Rs 4,056.15.
Meanwhile, Jefferies maintained a 'Buy' rating on the stock, raising the target price from Rs 4,885 from Rs 4,500. The potential highlighted L&T's Lakshya 2031 strategy and expects long-term growth, while emphasising on double-digit order inflow and investment in data centres.
Bernstein on Larsen & Toubro
- Bernstein maintains an Outperform rating with a target price of Rs 4,637.
- Order inflows continue to beat expectations despite a high base.
- Revenue missed estimates due to geopolitical disruptions and weakness in the domestic water segment.
- Margins were slightly below expectations, while working capital and returns remained strong.
- The brokerage sees near-term challenges but believes the company is making the right long-term moves.
Jefferies on Larsen & Toubro
- Jefferies maintains a Buy rating and hikes the target price to Rs 4,885 from Rs 4,500.
- The company unveiled its Lakshya 2031 strategy after exceeding Lakshya 2026 targets.
- Guidance includes 10–12% order inflow CAGR and 12–15% revenue CAGR through 2031.
- Plans include investments in data centres, electronics and semiconductors.
- A potential real estate IPO is also part of the value creation roadmap.
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