Buoyed by international orders, Larsen & Toubro (L&T) could beat its guidance on the order inflow growth for this fiscal, brokerages said.
L&T has guided for a 10% YoY growth in order inflows, 15% growth for group revenues and a core EBITDA margin of 8.3-8.5%.
Order Book
The company is expecting order prospects of Rs 15 lakh crore by March 31, 2026, 60% of which are likely to be international and the remaining domestic. Orders worth around Rs 8 lakh crore are from various segments of infrastructure, Rs 6 lakh crore from the hydrocarbon segment, and Rs 1 lakh crore from carbonlite.
“While the management guides for an order inflow growth of 10% YoY for FY26, we expect L&T to comfortably beat its guidance. Core margin of 7.6% (flat YoY) was a tad disappointing, but we expect improvement over the fiscal,” ICICI Securities said.
The company’s order book stood at a record Rs 6.1 lakh crore as of June, up 24% YoY, with the international segment forming 46% of the overall book. Within international, 92% comes from the Central Asia region. Order inflows grew 41% YoY to Rs 76,600 crore, driven by international geographies, up 25% YoY, and large order wins in power BTG.
Brokerage POV’s
For the remainder of FY26, L&T has stipulated an order pipeline of Rs 14.8 lakh crore, compared with Rs 19 lakh crore at the beginning of the year. “With its historical win-rate of 22-25%, an order inflow of Rs 4.5 lakh crore for (up 25% YoY) can be expected,” the brokerage said.
Motilal Oswal has also shared similar views. “L&T has a hit ratio of 20-25% in the prospect pipeline. If it maintains it, the company could grow its order inflows far more than the FY26 guidance of 10%.” Its assumption of a 10% growth in order inflows translates into a hit rate of nearly 17% for the year, the brokerage said.
L&T would likely have a higher share of overseas in its backlog by the end of FY27, if not by the end of FY2026 (currently at 46%, up 800 bps YoY), Kotak Institutional Equities said. “Having said that, its ability to win and execute large-sized jobs in the Middle East and beyond would be the key in deciding the scale-up of its overseas business over the next few years…”
Both the company and brokerages expect strong order prospects for hydrocarbon projects. L&T’s hydrocarbon offshore business this week bagged an order of over Rs 15,000 crore in the Middle East.
“We are continuing to see prospects in hydrocarbon business, particularly in the Middle East. We do see a situation where we might have to grow execution pretty well, and be able to create space for ourselves to accept the next order,” R Shankar Raman, L&T director and chief financial officer said in a media call on Wednesday.
Share of L&T rose 4.68% to Rs 3,659.20 on the NSE, emerging as the top gainer among the Nifty-50.