Larsen & Toubro’s share price increases by 4.2% to an intra-day high of Rs 3,643 on the National Stock Exchange. The stock of the engineering and construction major was the top gainer in the Nifty 50. The significant uptick in the share price of the large-cap company came after it reported its quarterly results for the first quarter of the financial year 2025-26.
Motilal Oswal on L&T: Raises revenue estimates
Motilal Oswal has retained its ‘Buy’ rating on L&T, with a target price of Rs 4,200. The brokerage marginally increased core engineering & construction revenue estimates, based on 28x two-year forward earnings for the core business and a 25% holding of the company discount to subsidiaries.
The order prospect pipeline grew 65% YoY to Rs 15 lakh crore for the next nine months of FY26. Historically, L&T had a hit ratio of 20-25% in the prospect pipeline, and if it maintains this hit rate, L&T could grow its order inflows far more than its FY26 guidance of 10% YoY growth.
In the GCC region, L&T hopes to scale up in areas like renewable, clean energy and transmission projects and, correspondingly, scale up the execution of existing projects.
L&T Q1 FY26 results
L&T posted a consolidated net profit of Rs 3,617 crore in the first quarter of FY26, up 30% year-on-year, compared to Rs 2,786 crore in the same quarter last year. The company’s revenue from operations increased by 15.5% to Rs 63,679 crore in Q1 FY26 as against Rs 55,120 crore in the same period a year ago.
L&T stock performance
The share price of L&T has risen 4.5% in the last five trading sessions. The stock has little unchanged in the last one month and has given a return of 7% in the past six months. L&T’s share price has declined by 3.6% over the last one year.