Larsen & Toubro Ltd. delivered a robust set of fourth quarter outcomes, marked by resilient order inflows, a considerable uptick in its monetary yr 2026 prospect base, and wholesome margin efficiency—although brokerages diverged on their outlooks as a consequence of macro and execution-related dangers.
Whereas Investec and Bernstein remained upbeat, Goldman Sachs adopted a extra conservative stance, highlighting execution and macro dangers.
Goldman Sachs has maintained a ‘impartial’ score, slicing its goal value to Rs 3,260 from Rs 3,330. Whereas acknowledging L&T’s stable order inflows—up 29% year-on-year within the fourth quarter—and a 20% improve for the total yr, Goldman Sachs flagged rising macro uncertainty and an growing share of worldwide tasks as key considerations.
The prospect base for monetary yr 2026 has jumped practically 57% year-on-year to Rs 19 lakh crore, with steerage for 10% order influx progress and 15% income progress. Nevertheless, Goldman remained cautious, citing execution dangers and worldwide publicity, and fashions margins at 8.3%, beneath L&T’s 8.5% steerage.
Investec provided a extra optimistic view, reiterating its ‘purchase’ score and elevating the goal value to Rs 4,115 from Rs 4,030. The brokerage highlighted L&T’s sturdy worldwide momentum, with fourth quarter order inflows rising 24% year-on-year and revenues up 16% regardless of weaker home exercise.
Investec additionally famous strong working capital administration and a 500bps enchancment in RoE to 16.3%. The Rs 19-lakh crore prospect pipeline is seen as a robust basis for sustained progress, underpinned by sectoral variety and international publicity. Administration’s steerage of 10% order influx progress, 15% income progress, and eight.5% margins can also be considered as credible.
Bernstein additionally maintained its ‘outperform’ score with a goal value of Rs 3,922. It underlined L&T’s distinctive efficiency in monetary yr 2025—marking the primary time in a decade the corporate beat its steerage throughout income, order inflows, and margins.
Whereas fourth quarter income got here in 2% beneath consensus, seemingly as a consequence of early execution in prior quarters, Bernstein is assured in L&T’s potential to ship on its fiscal 2026 steerage. The agency’s constructive view is anchored within the Rs 19-lakh crore order prospect base versus Rs 12 lakh crore final yr, providing visibility and a cushion in opposition to potential slowdowns.
. Learn extra on Earnings by Newsstate24 Revenue.
