Larsen & Toubro Ltd (Infra - Construction & Contracting) — fundamental analysis, earnings data, and key metrics. PE: 28.7. ROE: 16.6%. This stock is not currently in the Nifty 500 momentum outperformers list.
Based on Q3 FY26 earnings • Updated Feb 22, 2026
What: ₹1,356 billion order inflow (17% YoY) will convert to revenue over next 12-18 months
Impact: +₹75000 Cr revenue
“We witnessed our highest ever quarterly order inflows in Q3 FY '26 of Rs 1,356 billion, recording a 17% growth year-on-year”
What: Projects & Manufacturing portfolio margin improved by 50 basis points YoY to 8.1%
“The Projects & Manufacturing portfolio margin improved by 50 basis points y-on-y to 8.1%”
What: NWC/Revenue ratio improved to 8.2% (450 bps YoY improvement)
“Net Working Capital to Revenue ratio improved to 8.2%, reflecting an improvement of 450 basis points on a Y-on-Y basis”
Earnings deceleration risks from management commentary
Trigger: Implementation of new Labour Codes regulation
Impact: -100 bps margin impact
Management view: The reported PAT for Q3 FY '26 was at Rs 32 billion, down by 4% Y-o-Y, owing to a onetime impact of Rs 11.9 billion arising from the new Labour Codes regulation.
Monitor: One-time provisions
Trigger: Geopolitical tensions or forex volatility
Impact: -50 bps margin impact
Management view: The growth in international orders was supported by the Renewables and Power Transmission & Distribution subsegment.
Monitor: Export revenue share
Key quotes from recent conference calls
“We witnessed our highest ever quarterly order inflows in Q3 FY '26 of Rs 1,356 billion, recording a 17% growth year-on-year, led by a strong ordering momentum witnessed across both India and overseas markets. — P. Ramakrishnan”
“The Projects & Manufacturing portfolio margin improved by 50 basis points y-on-y to 8.1%. — P. Ramakrishnan”
“As of December 2025, the Net Working Capital to Revenue ratio improved to 8.2%, reflecting an improvement of 450 basis points on a Y-on-Y basis. — P. Ramakrishnan”
“With these developments in mind, we are guiding for mid-single overall growth in FY26. Meanwhile, our focused business areas will see double-digit growth in the same period. — P. Ramakrishnan”
Forward-looking targets from management for FY26
Revenue Growth Target
5.5%
Implied PAT Growth
7%
OPM Guidance
8.5%
Key Milestones
• Maintain 8.1%+ OPM
• Convert record order book to revenue
• Continue working capital optimization
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Larsen & Toubro Ltd's latest quarterly results (Dec 2025) show
Larsen & Toubro Ltd's current PE ratio is 28.7x.
Larsen & Toubro Ltd's price-to-book ratio is 4.8x.
Larsen & Toubro Ltd's fundamental strength based on key financial ratios
Larsen & Toubro Ltd has a debt-to-equity ratio of N/A.
Larsen & Toubro Ltd's return ratios over recent years
Larsen & Toubro Ltd's operating cash flow is positive (FY2025).
Larsen & Toubro Ltd's current dividend yield is 0.95%.
Larsen & Toubro Ltd's shareholding pattern (Dec 2025)
Larsen & Toubro Ltd's promoter holding is 0.0%.
Larsen & Toubro Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Larsen & Toubro Ltd has 3 key growth catalysts identified from recent earnings analysis
Larsen & Toubro Ltd has 2 key risks worth monitoring
In Q3 FY26, Larsen & Toubro Ltd's management highlighted
Larsen & Toubro Ltd's management has provided the following forward guidance for FY26
Based on quantitative research signals, here is why Larsen & Toubro Ltd may be worth studying
Larsen & Toubro Ltd investment thesis summary:
Larsen & Toubro Ltd's forward outlook based on current data signals
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.
