Brokerages expect Larsen & Toubro (L&T) to substantially better its order inflow growth guidance of 10% growth in FY26. L&T delivered order inflows of Rs 1.36 lakh crore, up 17% YoY due to 26% jump in orders in the infrastructure segment and 27% increase in domestic orders. The company’s order book stood at Rs 7.3 lakh crore as of December last year, which was up 30% YoY.
JM Financial estimates 24% order inflow growth for FY26, factoring in Q3 strength and a robust international outlook, and it expects order inflow strength to sustain in FY27 with an estimated 11% growth. Order inflows were 24% ahead of JM Financials’ estimates, and significantly ahead of consensus estimates, it said.
JM Financial see srong Middle East tenders
“Management is constructive of prospects in the Middle East with tendering by national oil majors remaining strong,” it said.
While there was a cancellation of large Kuwait tenders, estimated at about $5billiion, on which L&T was well-placed, these projects are likely to be re-tendered in CY26 with L&T hopeful of winning some of these tenders, JM Financial said.
“Further, 4GW of offshore HVDC projects are expected to be secured in FY27. Based on our assessment of Middle East prospects and European HVDC wins, we estimate 11% FY27E order inflow growth,” it said.
With the company’s historical win-rate of 22–25%, Order inflows of over Rs 4 lakh crore for FY26, up 20% YoY, can be expected versus a guidance of 10% YoY increase, said ICICI Securities.
L&T targets Rs 6 lakh crore FY26 pipeline
For the remainder of FY26, L&T stipulated an order pipeline of Rs 6 lakh crore vs. Rs 5.5 lakh crore YoY, it said .
Motilal Oswal said order prospects were spread across infra at Rs 4.02 lakh crore versus Rs 4 lakh crore last year, hydrocarbon at Rs 1.26 lakh crore versus Rs 1.44 lakh crore, among others.
“This pipeline is strong despite volatile oil prices as L&T remains focused on urban development, infrastructure, gas, renewables, AI and data Centre in the international markets and buildings and factories (B&F) thermal power, power T&D, urban infra, metals and minerals in the domestic markets.
L&T aims to add nearly 4-5GW of thermal power projects over the next two years out of the total opportunity of 10-15GW ordering in the sector. It is also eyeing opportunities in nuclear EPC projects, Motilal Oswal said, adding it factors in order to inflows to grow at 13% CAGR over FY25-28 for the core E&C segment.