The Larsen & Toubro shares surged 3.8% to a high of Rs 3,978.20 on the NSE after the company reported its quarterly earnings for FY27 despite tailwinds in the West Asia region. Key brokerages retained their rating on the stock on the back of resilient performance, beating estimates. 

Motilal Oswal on L&T

Motilal Oswal Financial Services raised the price target on L&T marginally to Rs 4,550 from Rs 4,500, implying an upside of over 19%. The brokerage maintained its ‘Buy’ rating on the stock and said that the company reported a better-than-expected performance.

L&T’s consolidated results and core EPC segment outperformed the brokerage’s estimates in Q1FY27. 

“We see positives in healthy 14% YoY growth in core E&C order inflows, core E&C revenue growth of 3% YoY, and flat margins at 7.6%. NWC at 4.9% of sales and RoE at 16.1% remained strong despite a challenging environment across domestic and international markets,” said Motilal Oswal. 

The prospect pipeline for the remaining nine months of FY27 is strong at Rs 15 lakh crore, with ordering activity in the Middle East likely to ramp up from Q2 FY27 onward. 

Despite lower ordering from the West Asia region, L&T has diversified its order inflow mix from other geographies such as Europe and has also seen stable inflows from the domestic private sector. 

JM Financial on L&T

JM Financial has, however, reduced the price target a bit to Rs 4,640 from Rs 4,700, implying an upside of 21% from the current market price. The brokerage house also maintained its ‘Buy’ rating on the stock, citing resilient performance despite headwinds. 

“With strong prospects of Rs 15 lakh crore for nine months of FY27 supported by continued momentum in ordering by the West Asia, we view L&T’s FY27 order inflow growth guidance of 10-12% as achievable,” said JM Financial. 

While Q1FY27 execution was adversely impacted by West Asia geopolitical disruptions, we expect normalisation in execution from H2 FY27 onwards. This, coupled with a large order book, should support revenue growth of 10-12% in FY27 (in line with the guidance). 

The company’s management has retained guidance on core margin as well. The brokerage expects that L&T is well placed to deliver over 16% CAGR in EBITDA over FY26-28, supported by strong momentum in West Asia ordering, pick-up in execution H2 FY27 onwards and stable core margins. 

L&T share price performance

The share price of L&T has risen 3.4% in the last five trading sessions. The stock has dropped 5.4% in the past one month and has changed a little over the last six months. L&T’s share price surged 13% in the past one year.