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Larsen and Toubro - Near term headwinds; Long term growth story intact

ICICIdirect Research 08 May 2026 DISCLAIMER

L&T reported consolidated revenues of ₹82,762 crore in Q4FY26, up 11% YoY, driven by steady execution across Infrastructure, Energy and Hi-Tech Manufacturing segments. Order inflows stood at ₹89,772 crore, with international orders contributing 67%. The consolidated order book rose ~28% YoY to ₹7.40 lakh crore, 2.6x book to bill, providing strong revenue visibility.
Management has guided for 10–12% revenue and order inflow growth in FY27, indicating sustained momentum despite a high base. This visibility is further supported by a robust FY26 order inflow of ₹4,35,590 crore (+22% YoY).
Over the medium term, the company targets Under its next 5-year strategic roadmap, Lakshya’31, L&T targets order inflow CAGR of ~10–12%, revenue CAGR of ~12–15% and ROE of ~16-17%, (vs earlier medium-term target of 18%) led by sustained growth in its core EPC businesses.
L&T is well positioned to benefit from structural themes such as energy transition (green hydrogen, carbon-lite solutions), digital infrastructure (data centers, semiconductors), and global EPC opportunities, we maintain our BUY rating on the stock with target price of ₹ 4955 valuing it on SoTP basis.

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