L&T shares slide 4% after Q4 profit dip. Why Jefferies, Goldman Sachs are still bullish

Shares of engineering and construction major Larsen and Toubro (L&T) declined as much as 4% to their day’s low of Rs 3,900 on the BSE on Wednesday after it reported a 3% year-on-year decline in consolidated net profit at Rs 5,326 crore for the March quarter, compared with Rs 5,497 crore in the same period last year.

For Q4 FY26, consolidated revenue stood at Rs 82,762 crore, registering an 11% year-on-year increase. International revenue came in at Rs 43,747 crore, contributing 53% to total quarterly revenue. Operating performance remained stable, with EBITDA rising 5% year-on-year to Rs 8,610 crore, supported by execution in core engineering businesses and better contribution from services.

During the quarter, L&T recorded consolidated order inflows of Rs 89,772 crore, driven by key wins in commercial buildings, roads, urban transport, transmission, and hydrocarbon segments. International orders stood at Rs 59,994 crore, accounting for 67% of total inflows. The company’s consolidated order book reached a record Rs 7,40,327 crore as of March 2026, marking a 28% increase from a year ago. Overseas projects make up 52% of the total order book.

L&T share price: Should you buy, sell or hold?

Jefferies has reiterated a Buy rating on Larsen & Toubro share, raising the target price to Rs 4,885 from Rs 4,500, an upside of 20%.The brokerage said Q4 EBITDA missed estimates by 5%, largely due to lower E&C revenues impacted by the US-Iran-Israel conflict. It noted that L&T has unveiled its Lakshya 2031 strategy after surpassing its Lakshya 2026 targets on revenue and order inflow CAGR. The company has guided for 10–12% CAGR in order inflows and 12–15% CAGR in revenue through 2031, supported by a planned $2 billion investment in data centres, electronics and semiconductors.

CLSA has an Outperform rating on the stock with a target price of Rs 4,842. It said L&T exceeded expectations on two of its four key guidance metrics in Q4, namely new orders and working capital, while execution and margins were below estimates due to challenges in the Middle East and India infrastructure segments. The brokerage highlighted new orders as the biggest positive, rising 22% year-on-year, driven by large-ticket global energy, infrastructure and domestic private capex projects.

Goldman Sachs has reiterated its Buy rating with a L&T target price of Rs 4,370, an upside of over 7%. The brokerage noted that management has guided for 10–12% growth in orders and revenue for FY27. However, core margins came in below estimates due to cost pressures from legacy projects. Despite this, Goldman Sachs remains constructive on the company’s prospects, citing opportunities in defence, green hydrogen and data centres, while also noting that order inflow momentum has stayed strong in a challenging environment. The company has also outlined its long-term strategy roadmap, Lakshya 31.

HSBC has maintained a Hold rating on L&T, cutting the target price to Rs 3,800. The brokerage said Q4 order inflows and revenue remained strong with limited impact from the Middle East conflict, while the Lakshya 2031 roadmap points to continued growth on a high base. However, it cautioned that sustaining strong order inflow growth in the current geopolitical environment could be challenging, and flagged that new investments may weigh on return on equity.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)