Street View: India's L&T set to gain from order strength, resilient margins

Larsen and Toubro

29/07/2026 05:22

** India's Larsen & Toubro LART.NS maintains annual revenue and margin outlook after Q1 profit rise 
** EBITDA margins contract to 9% from 9.9% a year ago on high commodity prices
** Shares jump 3% at 3,947 rupees

ORDERS, MARGINS OFFSET TEPID EXECUTION 
** CLSA ("outperform," PT: 4,842 rupees) says Q1 results beat on three out of four key guidance parameters, with order inflow growth and stronger-than-expected engineering and construction margins; maintains positive view on L&T's order book and FY27 outlook
** Citi ("buy," PT: 4,650 rupees) says robust order inflows exceed expectations, aided by large Europe wins; sees order outlook remaining constructive given healthy prospective pipeline despite softer operating margins
** UBS ("neutral," PT: 4,250 rupees) says L&T showed resilience despite Middle East disruptions, with healthy order intake and guidance retention providing comfort, though execution remained weak in domestic and international markets
** Jefferies ("Buy," PT: 5,000 rupees) says margins intact despite revenue miss, with E&C EBITDA margin stable at 7.6% and working capital improving sharply; expects stock to benefit if geopolitical tensions ease and execution improves
     

 (Reporting by Kashish Tandon in Bengaluru)
 ((kashish.tandon@thomsonreuters.com; 8800437922))