L&T shares rise 3% as FM announces record capex in 'structurally positive' Budget

Larsen and Toubro

• L&T shares rose over 3 percent after strong capex boost in Union Budget 2026
• FY27 capex projected at Rs 12.2 lakh crore, up 9 percent from FY26 estimates
• Budget focuses on infrastructure growth and rejuvenation of industrial sectors

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The shares of Larsen & Toubro (L&T) gained more than 3 percent on February 2 as strong capex boost announced by Finance Minister Nirmala Sitharaman yesterday boosted sentiment.

The shares of the engineering major jumped to Rs 3,934.80 apiece, snapping a two-session losing streak.

Here's what FM Sitharaman said:

While presenting Union Budget 2026, Finance Minister Nirmala Sitharaman announced that FY27 capex is projected at Rs 12.2 lakh crore. This marks a 9 percent rise from FY26 estimates. The spending plan is higher than the Rs 11.21 lakh crore budgeted for the current fiscal year, which was the highest on record.

She also announced that the government was proposing to rejuvenate legacy industrial sectors, and set up infrastructure risk guarantee fund. The setting up of dedicated REITs to accelerate recycling of significant real estate assets of CPSEs was also among the Budget proposals.

"The Budget's emphasis on infrastructure-led growth, development of industrial corridors and manufacturing hubs, data centres, high speed rail corridors, dedicated freight corridor, recycling of significant real estate assets of CPSEs through dedicated REITs, Rs 5000 crore allocation per city economic regions (CER) over 5 years in tier 2&3 cities including temple towns are step towards amplifying the potential of these cities to deliver the economic growth," said Samir Jasuja, founder and CEO, PropEquity.

"For equity markets, the Budget is structurally positive, offering improved earnings visibility through infrastructure-led growth and policy certainty. While tax measures on derivatives may trigger near-term volatility, the broader policy framework enhances India’s long-term investment attractiveness, anchored in stability, reform momentum and sustainable growth," said Ajit Mishra – SVP, Research, Religare Broking.

L&T share price history:

L&T shares gained around 4 percent in the past five days, but fell more than 6 percent in the past one month. The stock gained around 8 percent in the past six months, nearly 19 percent in the past one year and around 158 percent in the past five years.

The stock currently has a P/E ratio of 27.65.

L&T Q3 Results:

Larsen & Toubro (L&T) on January 28 reported a consolidated net profit of Rs 3,215 crore for Q3 FY26, marking a 4 percent YoY fall from Rs 3,358.84 crore net profit reported in Q3 FY25. This however included a one-time exceptional cost of Rs 1,191 crore due to the implementation of new labour codes last year.

Moneycontrol’s poll of brokerages had estimated the firm’s net profit to rise to Rs 4,524 crore.

The firm’s revenue from operations meanwhile rose 10.5% YoY to Rs 71,449.70 crore, missing MC poll estimate of Rs 75,011 crore.

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