L&T Shares Decline Over 3% Following Q4 Earnings Amid Concerns Over Slowing Margins and Lowered FY27 Outlook

Larsen & Toubro Shares Plummet 3% Amid Mixed Q4 FY26 Earnings

Shares of engineering and infrastructure major Larsen & Toubro (L&T) took a hit on Wednesday, falling as much as 3.3 percent to Rs 3,921.4 in early trade, as the company reported mixed Q4 FY26 earnings. The stock's decline extended losses from the previous session, where it slipped 1.1 percent following the results announcement.

Despite the recent decline, L&T's stock remains up 17.8 percent over the past one year, outperforming the Nifty 50, which is down 0.7 percent during the same period. The company's Q4 FY26 results showed a 3 percent year-on-year decline in consolidated net profit to Rs 5,326 crore, while revenue rose 11 percent to Rs 82,762 crore. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased 5 percent to Rs 8,610 crore, though margins narrowed to 10.4 percent from 11 percent a year ago.

L&T attributed the year-on-year decline in reported profit to an exceptional gain of Rs 475 crore in the corresponding quarter last year. The company's recurring PAT (Profit After Tax) rose 5 percent to Rs 5,289 crore. The company's order inflows for the January-March quarter stood at Rs 89,772 crore, while the total order book hit a record Rs 7.4 lakh crore as of March 31, 2026, up 28 percent on-year. International orders accounted for 52 percent of the overall order book.

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The company's unveiling of its new Lakshya 2031 strategy plan has prompted a divided response from brokerages. Concerns have emerged around execution, margins, order inflow momentum, and returns from new investments under the strategy.