Order Book Or Contract Wins
Expected: Next 26-29 monthsHIGH confidence
What: Order Book: ₹7.33 trillion
“The order book is at Rs 7.33 trillion as on December '25 and up 30% as compared to December '24.”
Larsen & Toubro Ltd: Stock Analysis & Fundamentals
Data from 3w agoLarsen & Toubro Ltd (Infra - Construction & Contracting) — fundamental analysis, earnings data, and key metrics. PE: 33.2. ROE: 16.6%. This stock is not currently in the Nifty 500 momentum outperformers list.
Larsen & Toubro Ltd Key Facts
What's Happening
🌐FII stake decreased 2.2% this quarter
🏛️DII accumulation — stake up 2.9%
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
Next 26-29 monthsHIGH
2. Demerger Spin Off Value Unlock
By March 2026HIGH
3. Operating Leverage Inflection
CurrentMEDIUM
Key Risks
1. One-time provision of ₹11
HIGH2. Cost overruns in legacy Hydrocarbon projects secured during COVID
MEDIUM3. Slowdown in domestic Water segment due to fund allocation headwinds
MEDIUMSector-Specific Signals
Total Order Book₹7.33 trillion+30%
Quarterly Order Inflow₹1,356 billion+17%
Infra Book-to-Bill26 months
Net Working Capital % of Revenue8.2%-450 bps
Key Numbers
Current Price
₹4,113
Dividend Yield
0.83%
Market Cap
5.7L Cr
Valuation
N/AWhy Are Larsen & Toubro Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 19, 2026
Demerger Spin Off Value Unlock
Expected: By March 2026HIGH confidence
What: Divestment Value: ₹2,000 crores
Impact: Debt reduction of ₹13,000 crores
“The Government of Telangana will pay Rs 2,000 crores towards L&T's equity investment and assume the Metro's entire debt of around Rs 13,000 crores.”
Operating Leverage Inflection
Expected: CurrentMEDIUM confidence
What: EBITDA Margin: 10.4%
Impact: +70 bps Y-o-Y
“The improvement in EBITDA margin is primarily driven by operational efficiencies across businesses.”
Geographical Expansion
Expected: OngoingMEDIUM confidence
What: International Order Share: 49%
“Out of the international order book of Rs 3.57 trillion, around 75% is from the Middle East.”
New Product Or Brand Launch
Expected: Next 1-2 yearsLOW confidence
What: Electrolyzer Stack: 4 MW
“We have already made a perfect design of a 100% indigenous 4 MW stack. We are now slowly upgrading it to 8 – 10 MW stack.”
Order Inflow of ₹1,356 billion
HIGH confidence
What: Order Inflow of ₹1,356 billion
“We witnessed our highest ever quarterly order inflows in Q3 FY '26 of Rs 1,356 billion, recording a 17% growth year-on-year.”
Order Inflow Growth guidance raised
HIGH confidence
What: 10% → >10%
“Basis the 9-month performance and the healthy prospects pipeline for the near term, we will be exceeding the 10% order inflow guidance for FY '26.”
What Are the Key Risks for Larsen & Toubro Ltd?
Earnings deceleration risks from management commentary
One-time provision of ₹11
HIGHTrigger: Implementation of new national Labour Codes legislation.
Impact: PAT impact: ₹11.9 billion
Management view: One-time provision taken in Q3 to cover future liabilities.
Monitor: labor
Cost overruns in legacy Hydrocarbon projects secured during COVID
MEDIUMTrigger: Bunching effect of COVID-era delays and Ukraine war-related supply disruptions.
Management view: Projects are in final stages; expected to be completed in 2-3 quarters.
Monitor: litigation
Slowdown in domestic Water segment due to fund allocation headwinds
MEDIUMTrigger: Headwinds in fund allocation for certain projects under central government plans.
Management view: Calibrating execution momentum to match fund receipts.
Monitor: regulatory
Exposure to steel and volatile metals like copper and nickel
LOWTrigger: Global price fluctuations in key construction materials.
Management view: Hedging 90-95% of estimated quantities immediately after contract award.
Monitor: commodity
Potential impact of oil price drops on Middle East capex
LOWTrigger: Oil prices hovering around $60-$65 range.
Management view: Focusing on essential production-maintenance projects which are less sensitive to spot prices.
Monitor: geopolitical
What Is Larsen & Toubro Ltd's Management Saying?
Key quotes from recent conference calls
“We are confident of exceeding our full year FY '26 guidance of 10% growth in group order inflows for the current year. [Previous Group Order Inflow Growth guidance]”
“Accordingly, we maintain our full year revenue growth guidance at 15%. [Previous Group Revenue Growth guidance]”
“With the execution momentum expected to pick up in H2, we are reasonably confident to achieve our full year EBITDA margin target of 8.5%. [Previous P&M EBITDA Margin guidance]”
“This marks the start of a phased consolidation of all real estate assets into a unified platform, positioning L&T Realty for greater scale, agility and financial strength. [Initiative: L&T Realty Consolidation]”
What Did Larsen & Toubro Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹714 billion
YoY +10%QoQ +5%
Why: Growth was driven by strong execution momentum in Hi-Tech Manufacturing, Energy projects, and the IT&TS businesses during the quarter.
Revenue growth remained steady at 10% despite some domestic infrastructure headwinds.
EBITDA
₹74.3 billion
YoY +18%Margin 10.4%
Why: The improvement in EBITDA margin was primarily driven by operational efficiencies across various business segments.
Margins expanded by 70 basis points year-on-year due to better cost management.
PAT
₹32 billion
YoY -4%QoQ -17.9%
Why: Reported PAT was impacted by a one-time provision of ₹11.9 billion related to the implementation of new Labour Codes.
Recurring PAT actually grew 31% to ₹44 billion when excluding the one-time regulatory provision.
Other Highlights
• Highest ever quarterly order inflows of ₹1,356 billion, up 17% Y-o-Y.
• Net Working Capital to Revenue ratio improved to 8.2% from 12.7% last year.
• MSCI ESG rating upgraded from BBB to A in November 2025.
What Sector Metrics Matter for Larsen & Toubro Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Total Order Book
₹7.33 trillion
YoY +30%QoQ +9.9%
Why: Driven by record quarterly inflows in Energy and Infrastructure segments.
Quarterly Order Inflow
₹1,356 billion
YoY +17%QoQ +17.1%
Why: Highest ever quarterly inflows led by strong ordering in India and overseas.
Infra Book-to-Bill
26 months
Why: Reflects the execution timeline for the current infrastructure backlog.
Net Working Capital % of Revenue
8.2%
YoY -450 bpsQoQ -200 bps
Why: Improved due to stronger collection intensity and better contractual terms.
International Revenue %
54%
QoQ -2%
Why: Reflects the high contribution of Middle East projects to the total top line.
Domestic Private Sector Order Share
36%
YoY +15%QoQ +6%
Why: Meaningful rise from 21% in March 2025 due to traction in thermal power and real estate.
Hydrocarbon Execution Period
29 months
Why: Standard execution cycle for the current energy project mix.
Slow-Moving Orders %
3%
YoY 0%QoQ 0%
Why: Primarily consists of water projects facing right-of-way or funding delays.
Thermal Power Opportunity Pipeline
15-20 GW
Why: Surprise development in the market as the country seeks to stabilize the grid.
Fixed Price Order Book %
55%
Why: Management maintains a mix of fixed and variable price contracts to manage inflation risk.
What Is Larsen & Toubro Ltd's Management Guidance?
Forward-looking targets from management for FY26
Revenue Growth Target
15%
OPM Guidance
8.5%
Revenue Outlook
15% growth
Margin Outlook
REAFFIRMED
Capex Plan
₹1,000-odd crores
Data Center expansion
Management Tone: BULLISH
Guidance Changes
RAISED
Order Inflow Growth: 10% → >10%
LOWERED
Net Working Capital to Revenue: 12% → 10%
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
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Frequently Asked Questions: Larsen & Toubro Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Larsen & Toubro Ltd's latest quarterly results?
Larsen & Toubro Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: -3.7%
- Revenue Growth YoY: +10.5%
- Operating Margin: 13.0%
What is Larsen & Toubro Ltd's current PE ratio?
Larsen & Toubro Ltd's current PE ratio is 33.2x.
- Current PE: 33.2x
- Market Cap: 5.7 Lakh Cr
- Dividend Yield: 0.83%
What is Larsen & Toubro Ltd's price-to-book ratio?
Larsen & Toubro Ltd's price-to-book ratio is 5.6x.
- Price-to-Book (P/B): 5.6x
- Book Value per Share: ₹737
- Current Price: ₹4113
Is Larsen & Toubro Ltd a fundamentally strong company?
Larsen & Toubro Ltd's fundamental strength based on key financial ratios
- Return on Capital (ROCE): 14.0%
Is Larsen & Toubro Ltd debt free?
Larsen & Toubro Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹1.3 Lakh Cr
What is Larsen & Toubro Ltd's return on equity (ROE) and ROCE?
Larsen & Toubro Ltd's return ratios over recent years
- FY2023: ROCE 12.0%
- FY2024: ROCE 13.0%
- FY2025: ROCE 14.0%
Is Larsen & Toubro Ltd's cash flow positive?
Larsen & Toubro Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹9,000 Cr
- Free Cash Flow (FCF): ₹-6,000 Cr
- CFO/PAT Ratio: 52% (adequate)
What is Larsen & Toubro Ltd's dividend yield?
Larsen & Toubro Ltd's current dividend yield is 0.83%.
- Dividend Yield: 0.83%
- Current Price: ₹4113
Who holds Larsen & Toubro Ltd shares — promoters, FII, DII?
Larsen & Toubro Ltd's shareholding pattern (Mar 2026)
- FII (Foreign): 18.8%
- DII (Domestic): 43.3%
- Public: 37.6%
Is promoter holding increasing or decreasing in Larsen & Toubro Ltd?
Larsen & Toubro Ltd's promoter holding is 0.0%.
- Current Promoter Holding: 0.0% (Mar 2026)
Is Larsen & Toubro Ltd a new momentum entry or an established outperformer?
Larsen & Toubro Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Larsen & Toubro Ltd?
Larsen & Toubro Ltd has 7 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — Record order book provides multi-year revenue visibility.
- Demerger Spin Off Value Unlock — Exiting the Hyderabad Metro asset will remove significant debt and losses from the consolidated books.
- Operating Leverage Inflection — Operational efficiencies are driving margin expansion even as revenue scales.
- Geographical Expansion — Massive expansion in Middle East Energy and Renewables markets.
What are the key risks in Larsen & Toubro Ltd?
Larsen & Toubro Ltd has 5 key risks worth monitoring
- [HIGH] One-time provision of ₹11 — Implementation of new national Labour Codes legislation.
- [MEDIUM] Cost overruns in legacy Hydrocarbon projects secured during COVID — Bunching effect of COVID-era delays and Ukraine war-related supply disruptions.
- [MEDIUM] Slowdown in domestic Water segment due to fund allocation headwinds — Headwinds in fund allocation for certain projects under central government plans.
- [LOW] Exposure to steel and volatile metals like copper and nickel — Global price fluctuations in key construction materials.
What did Larsen & Toubro Ltd's management say in the latest earnings call?
In Q3 FY26, Larsen & Toubro Ltd's management highlighted
- "We are confident of exceeding our full year FY '26 guidance of 10% growth in group order inflows for the current year. [Previous Group Order Inflow G..."
- "Accordingly, we maintain our full year revenue growth guidance at 15%. [Previous Group Revenue Growth guidance]"
- "With the execution momentum expected to pick up in H2, we are reasonably confident to achieve our full year EBITDA margin target of 8.5%. [Previous P..."
What is Larsen & Toubro Ltd's management guidance for growth?
Larsen & Toubro Ltd's management has provided the following forward guidance for FY26
- Revenue growth target: 15%
- OPM guidance: 8.5%
- Capex plan: ₹1,000-odd crores for Data Center expansion
- Management tone: bullish
- Milestone: [RAISED] Order Inflow Growth: 10% → >10%
- Milestone: [LOWERED] Net Working Capital to Revenue: 12% → 10%
What sector-specific metrics matter most for Larsen & Toubro Ltd?
Larsen & Toubro Ltd's most important sub-sector-specific KPIs from the latest concall
- Total Order Book: ₹7.33 trillion (YoY +30%) (QoQ +9.9%) — Driven by record quarterly inflows in Energy and Infrastructure segments.
- Quarterly Order Inflow: ₹1,356 billion (YoY +17%) (QoQ +17.1%) — Highest ever quarterly inflows led by strong ordering in India and overseas.
- Infra Book-to-Bill: 26 months — Reflects the execution timeline for the current infrastructure backlog.
- Net Working Capital % of Revenue: 8.2% (YoY -450 bps) (QoQ -200 bps) — Improved due to stronger collection intensity and better contractual terms.
- International Revenue %: 54% (QoQ -2%) — Reflects the high contribution of Middle East projects to the total top line.
- Domestic Private Sector Order Share: 36% (YoY +15%) (QoQ +6%) — Meaningful rise from 21% in March 2025 due to traction in thermal power and real estate.
Is Larsen & Toubro Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Larsen & Toubro Ltd may be worth studying
- Cash flow is positive — CFO ₹9,000 Cr
What is the investment thesis for Larsen & Toubro Ltd?
Larsen & Toubro Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Key risk: One-time provision of ₹11
What is the future outlook for Larsen & Toubro Ltd?
Larsen & Toubro Ltd's forward outlook based on current data signals
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: One-time provision of ₹11
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.