Larsen & Toubro
L&T is India's largest engineering & construction conglomerate, executing large infrastructure, power, defence and hydrocarbon projects, while also holding stakes in separately listed IT services (LTIMindtree, L&T Technology Services) and financial services (L&T Finance) businesses.
- P/E ~31x
- ROE ~18.6%
- Order book ₹7.8L cr
- Down 16% from Feb peak
- No promoter, 0% pledge
Updated on 14 Oct 2026 · Data as of 13 Oct 2026
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Snapshot
- Share price
- ₹3,675.00
- 13 Oct 2026
- 52-week range
- ₹3,310.07 – ₹4,375.36
- All-time peak
- ₹4,375.36
- 23 Feb 2026 · −16.0% from peak
- Dividend yield
- 1.03%
- Price history since
- 2002
- About 24 years of prices
What's happening
Q2 FY27 (Jul-Sep 2026) results are due soon - L&T reported the equivalent quarter last year on Oct 29, so results likely land within the next two weeks. The most recently reported quarter, Q1 FY27 (Apr-Jun 2026), showed revenue up 7% YoY to ₹67,942 crore and PAT up roughly 14% YoY, while group EBITDA margin slipped 90bps YoY to 9.0% on slower execution, IT-business forex and higher expected-credit-loss provisions. Order inflow was strong at ₹1.08 lakh crore (+14% YoY) and the order book reached ₹7.79 lakh crore. In early October 2026, L&T's Power T&D arm won mega orders worth ₹10,000-15,000 crore across Saudi Arabia, the UAE and India, and its Energy CarbonLite unit secured a notice to proceed for a 2x800MW thermal plant in Jharkhand.
In plain terms
L&T builds and runs some of India's and the Gulf's biggest infrastructure, power and defence projects, and separately owns big stakes in three other listed companies. The order book keeps growing, now worth about 2.7 years of revenue, so there's no shortage of work lined up. The tension: execution margins are edging down even as headline profit keeps growing, so some of that profit growth is coming from other income or provisioning, not purely from the core work getting more profitable. The stock trades at a rich ~31x earnings for what looks like a construction company, which only makes sense if you're valuing it as a diversified conglomerate plus stakes in faster-growing subsidiaries.
Quarters
Q2 FY26 (Jul-Sep 2025): revenue ₹67,984 crore (+10.4% YoY), but EBITDA margin eased to 10.0% from 10.3%. PAT growth was reported as +15.6% YoY to ₹3,926 crore by one cluster of sources and +16% to ₹4,687 crore by another - the figures don't reconcile, likely a standalone/consolidated or 'attributable to owners' difference, so treat the ~15-16% growth rate as more reliable than the absolute number. Q1 FY27 (Apr-Jun 2026): revenue ₹67,942 crore (+7% YoY), PAT up roughly 14% YoY (again cited as either ₹4,123 crore or ₹4,988 crore depending on source), and group EBITDA margin fell 90bps YoY to 9.0%, which management attributed to lower execution levels, IT-segment forex variation, and higher expected-credit-loss provisions. Management maintained FY27 guidance of 10-12% growth in order inflow and revenue, PPM margin around 7.8%, and net working capital near 10% of revenue. Net picture: revenue and order growth are intact, but core execution margin is softening slightly even as reported profit keeps rising.
Performance
Heads-up on splits: Larsen & Toubro has split its shares or issued bonus shares before (most recently ×1.5 on 13 Jul 2017, ×1.5 on 11 Jul 2013 and 2-for-1 on 1 Oct 2008). A sudden price drop around a split date is usually just the price adjusting for the extra shares, not a crash.
Share price
−1.6% over 1 year
Returns by period
| Period | Larsen & Toubro | Nifty 50 | Siemens |
|---|---|---|---|
| 3 months | −4.5% | −5.5% | +7.1% |
| 1 year | −1.6% | −9.9% | +22.2% |
| 3 years | +21.7% | +15.2% | +79.2% |
| 5 years | +120.7% | +25.1% | +190.3% |
₹100 invested on 13 Oct 2021 became…
- Larsen & Toubro₹221
- Nifty 50₹125
- Siemens₹290
Over 5 years the stock is up 120.7% versus the Nifty's 25.1% - a clear win over the index - but it has lagged its closest listed peer, Siemens India, up 190.3% over the same period (₹100 became ₹220.7 in L&T, ₹290.3 in Siemens, ₹125.1 in the Nifty). Over 1 year L&T is roughly flat (-1.55%) while Siemens is up 22.2% and the Nifty is down 9.93%, so L&T has held up better than the index lately without closing the gap to its peer. The stock is down 16% from its Feb 2026 peak of ₹4,375, which sits comfortably within its 52-week range (₹3,310-4,375) - a pullback, not a crash. Separately, over L&T's 24-year listed history the company has demerged businesses that now trade as independent listings (L&T Finance Holdings, L&T Technology Services, and the predecessor of today's LTIMindtree); the data available here only adjusts the price series for bonus/stock splits, not for these spinoffs, so a simple long-run price return understates what a continuous holder actually received, since they also ended up holding shares in those spun-off companies.
Dividend
Paid in the last 12 months
₹38.00 per share
Dividend yield
1.03%
Dividend yield is the last 12 months of dividends divided by today's share price. A 1.0% yield means every ₹100 of Larsen & Toubro shares paid about ₹1.0 in dividends over the past year. Past payouts can change.
Recent dividends
| Date | Per share |
|---|---|
| 22 May 2026 | ₹38.00 |
| 3 Jun 2025 | ₹34.00 |
| 20 Jun 2024 | ₹28.00 |
| 2 Aug 2023 | ₹30.00 |
| 21 Jul 2022 | ₹22.00 |
| 28 Jul 2021 | ₹18.00 |
| 4 Nov 2020 | ₹18.00 |
| 5 Aug 2020 | ₹8.00 |
Valuation
At roughly 31x trailing earnings and 4.5x book value, L&T trades at close to double a blended engineering/capital-goods sector median P/E of around 14x. Why it's expensive: the market is pricing in more than the core E&C business - L&T also carries economic value from its stakes in listed subsidiaries (LTIMindtree, L&T Technology Services, L&T Finance) and a record, highly international order book (52% overseas). Whether that premium is justified is a separate question from why it exists - that would require valuing the core business and each subsidiary stake independently (sum-of-the-parts), which is Not verified here. ROE (18.6%) and ROCE (16.0%) are both above sector medians and support some premium, but the dividend yield is thin at ~1.03%, so the valuation case rests mostly on growth and capital efficiency, not income.
Growth
Growth here looks volume-led rather than margin-led. Order inflow is up 14% YoY and the order book is up 5% sequentially to ₹7.8 lakh crore (about 2.7x annual revenue), and revenue is growing at high single digits. But execution margin is moving the other way - EBITDA margin fell 90bps YoY in the latest quarter after easing the quarter before - so the ~14-16% YoY PAT growth seen recently is not purely a margin story; some of it likely comes from scale, other income, or provisioning/tax effects rather than the core work becoming more profitable per rupee of revenue. Volume growth backed by a record order book tends to be more durable than margin expansion alone, but the margin slippage is worth tracking.
Health
Financial-risk figures for the most recent quarter were not independently verified here - a debt-to-equity ratio of 1.09 that surfaced in research is dated to September 2025 and is Not verified for the current (September 2026) quarter. Management's own guidance targets net working capital near 10% of revenue, which it calls healthy. The clearer flag from the Q1 FY27 commentary is rising expected-credit-loss provisions as one driver of the margin dip - that points to business risk (project and counterparty execution quality) rather than financial risk (balance-sheet leverage), which is the more relevant distinction here.
Ownership
L&T has no promoter in the conventional sense - promoter shareholding is reported at 0%, the company having evolved from its 1938 Danish founders into a professionally managed, institutionally owned firm. There is accordingly no promoter pledging to flag. Shareholding is spread across FIIs (~18.8%), DIIs (~4.3%), mutual funds (~20.5%), insurance companies (~18.75%) and retail (~37.65%), per one source not independently cross-checked, so treat the exact split as indicative rather than exact. No single marquee individual investor stood out on the register in this search - if a well-known name was expected here, none surfaced. Separately, chairman S.N. Subrahmanyan drew public criticism in January 2025 for endorsing a 90-hour work week and later for remarks on labour mobility - a governance/culture flag worth being aware of, though it predates the last 3 months and is reputational rather than financial.
The View
The one thing to watch
The Q2 FY27 results, likely due within the next two weeks, will show whether the EBITDA/PPM margin has stabilized near management's 7.8% FY27 guidance or continues to slip - that resolves whether the recent margin softness is a one-quarter blip or a trend.
Strengths
- +Record order book of ₹7.79 lakh crore as of June 2026, up 5% sequentially, giving roughly 2.7 years of revenue visibility
- +Order inflow up 14% YoY (₹1.08 lakh crore in Q1 FY27), with international orders at 52% of the book, reducing dependence on the domestic cycle
- +ROE of 18.6% and ROCE of 16.0%, both above sector medians despite the conglomerate's capital intensity
- +5-year shareholder return of 120.7%, comfortably ahead of the Nifty's 25.1% over the same period
Watchpoints
- !Group EBITDA margin fell 90bps YoY to 9.0% in Q1 FY27, linked by management to execution pace, IT-segment forex, and higher expected-credit-loss provisions - watch whether it stabilizes near the ~7.8% PPM guided for FY27
- !Reported PAT figures for the last two quarters diverge meaningfully between sources (₹3,926cr vs ₹4,687cr for Q2 FY26; ₹4,123cr vs ₹4,988cr for Q1 FY27) - the ~14-16% growth rate is more reliable than the absolute crore figure until checked against the company's own filing
- !Valuation at ~31x earnings is roughly double the sector median - a de-rating toward peer multiples would hurt returns even if execution stays on track
- !Dividend yield is low (~1.03%), so shareholder returns depend almost entirely on price performance, which has lagged peer Siemens by a wide margin over 1, 3 and 5 years
How sure are we about the data? · Moderate
Order book, order inflow, revenue and margin commentary for Q1 FY27 and Q2 FY26 were cross-checked across multiple independent outlets (Business Standard, Kotak Neo, Equitybulls, Investing.com earnings-call transcript). Exact PAT crore figures for both of the last two quarters could not be reconciled across sources - likely a standalone/consolidated or 'attributable to owners' distinction - so growth rates (%) were used as the more reliable figures and the discrepancy is flagged above rather than averaged. Debt-to-equity (1.09) and the shareholding split are from sources that may predate the September 2026 quarter and were not cross-verified against L&T's own filing. Price, returns, dividend and split data were taken exactly as supplied and not recomputed.
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Ticker Tales is not a SEBI-registered investment adviser or research analyst. This report is for learning only and is not investment advice. Data as of 13 Oct 2026.