L&T Stock Falls 2% Despite NTPC Order Win and Bullish CLSA Outlook, Tender Seen Boosting FY27 Inflows

Larsen & Toubro Ltd Shares Decline Amid Global Market Optimism

Shares of Larsen & Toubro Ltd (L&T) fell by 2 percent to Rs 3,923 in morning trade on Thursday, following a sharp gain of 7.6 percent the previous day. The decline is attributed to the company's emergence as the preferred bidder for a large NTPC-linked order, which has been viewed positively by brokerage firm CLSA.

CLSA Remains Optimistic on L&T Stock

CLSA has maintained an outperform call on L&T stock with a target price of Rs 4,842 per share. The brokerage firm believes that the company's win in the $3.7 billion NTPC tender for 4.5 GW of power equipment will have a significant impact on the company's inflows. According to CLSA, the order will add around 6 percent to FY27 inflows and help cushion the impact of weaker order momentum from West Asia.

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Government Capex Theme Strengthens L&T

The brokerage firm's analysis highlights the strength of the government capex theme, with 54 percent of L&T's order book already coming from the energy segment. Additionally, the company has won 3.2 GW of projects over BHEL, which is expected to help it sustain around 49 percent market share in FY27.

| Comparison of L&T's Order Inflows | | --- | --- | | International orders in the first nine months of FY27 | 55% | | International orders in the December quarter | 49% | | International revenue in the December quarter | 54% |

Geopolitical Relief and Fresh Order-Related News

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The weakness in L&T stock on Thursday comes a day after the easing of tensions in West Asia triggered a relief rally in companies seen as exposed to the region. The engineering and construction major has significant international exposure, with overseas orders contributing 55 percent of total order inflows in the first nine months of the financial year through December 2025. In the December quarter alone, international orders accounted for 49 percent of inflows, while international revenue made up 54 percent of total revenue.

Recent Developments

Alongside the geopolitical relief, fresh order-related news had also kept the company in focus. Reports on Wednesday stated that L&T and BHEL had emerged as the lowest bidders for two major thermal power-related packages, with L&T seen as the lowest bidder for a Rs 22,500 crore package tied to the NTPC Lara and DVC-CIL Chandrapura projects.

L&T Stock Performance

Despite Thursday's decline, L&T stock remains up 28.5 percent over the past one year, sharply outperforming the Nifty 50's 7 percent gain over the same period.