The shift is expected to help maintain the order book momentum. The company has reaffirmed its FY26 guidance of over 10% order growth, 15% revenue growth, and 8.5% margin for the core E&C business. Analysts have maintained ‘buy’ rating on the stock with a 9-18% upside to Friday’s closing price of ₹4,031.2.
The company’s order inflow grew by 45% year-on-year to ₹1,158 billion, driven by strong demand from the Middle East. The international segment contributed 49% to the total order book. The order pipeline for the second half of FY26 was ₹10,400 billion, led by energy transition, infrastructure, and digital infrastructure projects. However, slowdown in execution and delay in order inflow conversion due to geopolitical tensions remains a key concern.
AgenciesExecution in energy, mfg offset sluggish infra; analysts see strong revenue visibility
L&T expects improvement in order inflow from the domestic market. Over the next two-three years, it anticipates 10-15GW thermal power projects along with opportunities from nuclear and hydro power, buildings and factories, and defence.
L&T’s consolidated revenue rose 10.4% year-on-year to ₹67,983.5 crore and net profit grew by 15.6% to ₹3,926.1 crore in the September 2025 quarter. The operating margin before depreciation and amortisation (Ebitda margin) reduced by 30 basis points to 10% due to margin compression in the IT and Technology Services portfolio.
The company has reached an in-principle agreement with the Telangana government to divest its stake in the Hyderabad Metro. Under the proposed deal, the government will take over ₹13,000 crore in debt, while L&T will receive ₹2,000 crore in equity, reducing the debt and interest burden. The transaction is expected to be concluded by the end of FY26. Emkay Global has raised the stock’s target price by 10% to ₹4,400, citing strong order visibility and execution capabilities. Motilal Oswal and PL Capital also maintained a ‘buy’ rating, with revised targets of ₹4,500 and ₹4,766 respectively, up 5-15%. Emkay raised EPS estimates by 6-7% for FY27-28, led by robust visibility.