Larsen & Toubro (L&T), India’s top-notch engineering and infrastructure behemoth, posted a stellar performance for the quarter ended June 2025 that triggered a 5% surge in its shares in early trading on July 30. The spurt followed as investors welcomed strong financial numbers which not only beat market estimates but also highlighted the company’s business pace and growth prospects.
Financial Highlights: Consistent Outperformance
- Net profit in Q1 FY26 surged 30% year-on-year to ₹3,617 crore, beating analyst estimates of approximately ₹3,400 crore. This was a significant improvement from ₹2,786 crore a year ago.
- Revenue from operations grew 15.5% to ₹63,679 crore, helped by excellent execution, particularly in the Projects & Manufacturing business. This was well ahead of Street estimates of approximately ₹62,950 crore.
- Order inflows reached a high of ₹94,453 crore, up by 33% YoY, with foreign orders, especially from the Middle East, contributing to about half the pie. The consolidated order book is now at a record high of ₹6.1 lakh crore.
- EBITDA increased 13% to ₹6,318 crore, with margins at 9.9%, indicating good operational performance given the higher input costs.
What Drove the Record Quarter?
L&T’s performance was driven by across-the-board order victories in thermal power, renewables, hydrocarbons, and large real estate development projects. Its global reach continues to grow, with 52% of the topline from overseas orders, supported by structural demand in the Middle East and ramp-up in green energy programs.
Market & Analyst Reaction
- L&T shares jumped to a day’s high of ₹3,685, becoming the Nifty 50’s top performer. The earnings surprise boosted several brokerages such as Jefferies and Motilal Oswal to upgrade their target prices, with 15–20% potential upside from current market levels.
- Almost all analysts have a “Buy” recommendation on the stock, citing good order visibility, sound balance sheet, and strong cash generation.
- The positive mood is based on expectations that L&T will surpass its initial FY26 guidance for order and revenue expansion, supported by a record book of potential projects and continued government expenditure on infrastructure.
Boosted Confidence in the Outlook
L&T’s Q1 performance and bullish share price movement announce higher confidence in its growth plan. With the company continuing to win large-scale domestic and overseas projects, institutional investors and market analysts see L&T leading India’s infrastructure revolution in the coming quarters.
