L&T shares remained in focus today as it opened on a positive note, reaching the ₹4,000 mark on BSE.
JM Financial maintained a positive outlook on the stock, citing strong order pipeline and long-term growth visibility.
The brokerage raised its target price, signalling confidence that L&T’s new orders and infrastructure demand will support future earnings.
L&T Shares Reach ₹4,000 Mark as Brokers Back Strong Q3 Order Book Despite Profit Dip
The optimism comes after L&T reported its Q3 FY26 results, where consolidated net profit dipped about 4 % YoY to ₹3,215 crore, partly due to a one-time additional expense related to India’s new labour codes. At the same time, the company's revenue climbed around 10% YoY, driven by broad project activity
L&T Shares Reach ₹4,000 Mark as Brokers Back Strong Q3 Order Book Despite Profit Dip
Summary
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Larsen & Toubro (L&T) shares were trading strongly on Thursday's early trade as the stock reached the ₹4,000 mark on BSE. At 11:25 AM the company was changing hands at ₹3,913 per share, up over 3 % from the previous close, as markets reacted to the company’s recent quarterly performance and broker guidance.
The optimism comes after L&T reported its Q3 FY26 results, where consolidated net profit dipped about 4 % year-on-year (YoY) to ₹3,215 crore, partly due to a one-time additional expense related to India’s new labour codes. At the same time, the company's revenue climbed around 10% YoY, driven by broad project activity.
JM Financial continues to recommend L&T as a "Buy", maintaining confidence in the company’s long-term earnings potential and order book strength. It has also raised its 12-month price target to ₹4,655 per share, implying an upside from current levels.
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The brokerage firm highlighted few drivers for its positive stance. One of them being that the company won more new business orders than expected.
In the quarter ended December 31, the company reported ₹1.36 trillion in new orders, about 17% more than the same quarter last year. This strong performance shows that demand for L&T's engineering and infrastructure work remains solid, especially overseas and in large power and transmission projects.
The other driver is that while L&T is getting big contracts, its core business (major construction and industrial work) grew modestly this quarter. As mentioned above, its total sales were up about 10% compared with the same quarter last year. However, this was slightly below than expectations as some project segments, like energy, didn’t grow as fast as hoped for.
Despite the mixed performance on revenue, L&T managed to keep profit margins in line with expectations. The company’s earnings before interest, tax, and depreciation (EBITDA) grew reasonably. There was also strong delivery in non-core areas like real estate sales, which helped overall profitability.
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Notably, L&T now has a hefty order book worth over ₹7.3 trillion, which means future work is already lined up. JM Financial believes that the company’s prospects for winning more contracts, especially in the Middle East and in large infrastructure segments, remains strong.
Additionally, the management maintained its full-year guidance across parameters. It still expects decent growth this financial year. The company is also aiming to improve profit margins and sales in upcoming quarters by focusing on better project execution and tapping emerging opportunities in energy transmission, renewables, and high-value infrastructure.