LKP Research's research report on Larsen and Toubro
Larsen & Toubro (L&T) delivered strong performance in Q1FY26, supported by robust order inflow and strong order prospects ₹14.8 tn for 9MFY26. Management’s reaffirmation of FY26 guidance (i.e ~10% order intake growth and 15% revenue growth with P&M margin of 8.3%-8.5% in FY26) highlights confidence in robust execution and business resilience. It posted a strong set of Q1FY26 numbers with consolidated revenue rising 15.5% YoY, although EBITDA margin saw a slight dip of 27bps YoY to 9.9%. Execution momentum remained healthy across key segments, while strategic initiatives in emerging sectors such as green energy and semiconductors bolster long-term growth prospects.
Outlook
Hence, we maintain BUY with a revised SoTP based TP of ₹4,135 valuing the core business at 25x FY27E EPS.
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