L&T Share Price Declines by Nearly 4% Following Q4 Earnings Release

Larsen & Toubro Share Price Falls 4% After Q4 Results Disappoint

Shares of Larsen & Toubro (L&T) plummeted nearly 4% on Wednesday, 6 May, following the company's disappointing March quarter results. L&T's share price declined as much as 3.85% to ₹3,900 apiece, making it the worst-performing stock on the BSE.

L&T's consolidated net profit for the January-March quarter of FY26 declined by 3% year-on-year (YoY) to ₹5,325.60 crore, down from ₹5,497.26 crore in the same period last year. The company's consolidated revenue from operations in Q4FY26 grew 11.25% to ₹82,762.16 crore from ₹74,392.28 crore, YoY.

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L&T's consolidated order inflows in Q4FY26 stood at ₹89,772 crore, while its consolidated order book as of FY26 reached an all-time high of ₹7,40,327 crore, reflecting a 28% YoY growth. The company's board also recommended a final dividend of ₹38 per share of the face value of ₹2 each for the fiscal year ended March 2026.

Analysts have expressed concerns over the company's execution in core EPC, which was impacted by delays in domestic water projects and disruption due to the US-Iran war in the Middle East. Motilal Oswal expects core E&C revenue, EBITDA, and PAT to clock a CAGR of 19%, 21%, and 26% over FY26-28, respectively.

At the current price, L&T's core E&C business is trading at 31x/23x P/E on FY27/28E earnings. Motilal Oswal has revised its SoTP-based L&T share price target to ₹4,550, based on 25x two-year forward earnings for the core business and a 25% holding company discount to subsidiaries.

Key risks and concerns for L&T include slowdown in order inflows, delays in the completion of mega and ultra-mega projects, a sharp rise in commodity prices, an increase in working capital, and increased competition. ICICI Securities has downgraded L&T shares to 'Add' from 'Buy' and cut the target price to ₹4,300 per share from ₹5,000 earlier.

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Meanwhile, PL Capital believes L&T is well-placed to benefit in the long run due to strong international prospects led by the Middle East, a healthy domestic pipeline on the back of public-driven capex, and uptick in private capex. The brokerage firm revised its FY27-28 EPS estimates by -8.0%/-10.4%, factoring in supply chain constraints and execution challenges. It maintained a 'Buy' rating and cut L&T share price target to ₹4,632 apiece from ₹4,806 earlier.

L&T's share price has gained over 5% in a month and has fallen over 3% in three months. The large-cap stock has rallied 18% in a year and has surged 65% in three years. L&T shares have delivered multibagger returns of 193% over the past five years. At 12:15 PM, L&T share price was trading 3.35% lower at ₹3,920.30 apiece on the BSE.