Larsen & Toubro Limited (LT) AI Stock Analysis

• Market Cap: ₹5.33T
• Dividend Yield: 0.86%
• Average Volume (3M): 158.84K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 1.15
• Revenue Growth: 15.74%
• EPS Growth: 18.90%
• Country: IN
• Employees: 54,303
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 28.53
• Shares Outstanding: 1,375,556,000
• 10 Day Avg. Volume: 155,256
• 30 Day Avg. Volume: 158,836
• PEG Ratio: 2.55
• Price to Book (P/B): 5.00
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 102.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹4,144.11
• Price Target Upside: 4.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 76 Outperform
• Price Target: ₹4,491.00 ▲(13.04% Upside)

Larsen & Toubro Limited's stock score is driven by strong financial performance and technical analysis, indicating robust growth and positive momentum. However, the high P/E ratio suggests potential overvaluation, and cash flow challenges need addressing for sustained growth.

Larsen & Toubro Limited Business Overview & Revenue Model

Company Description

Larsen & Toubro Limited engages in engineering, construction, and manufacturing operations worldwide. The Infrastructure segment engineers and constructs building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution, water and effluent treatment, and metallurgical and material handling systems. The Hydrocarbon segment provides engineering, procurement, and construction solutions for the oil and gas industry. The Power segment offers turnkey solutions for coal-based and gas-based thermal power plants, including power generation equipment with associated systems and balance-of-plant packages. The Heavy Engineering segment manufactures and supplies custom designed, engineered critical equipment and systems to the fertilizer, refinery, petrochemical, chemical, oil and gas, and thermal and nuclear power industries. The Defence Engineering segment designs, develops, produces, and supports equipment, systems, and platforms for the defense and aerospace sectors. This segment also designs, constructs, and repairs/refits defense vessels. The Others segment engages in the realty, smart world, and communication businesses, including military communications; marketing and servicing of construction and mining machinery and parts; and manufacturing and sale of rubber processing machinery. This segment also operates digital platforms, such as SuFin for B2B e-commerce; and EduTech for higher education and professional skilling. The company was founded in 1938 and is headquartered in Mumbai, India.

How the Company Makes Money

Larsen & Toubro generates revenue primarily through its diversified business segments, including construction and infrastructure development, which account for a significant portion of its earnings. The company undertakes large-scale projects, often through contracts awarded by government bodies and private enterprises, which provide a steady stream of income. Additionally, LT has a manufacturing segment that produces equipment and machinery used in construction and engineering projects, contributing further to its revenue. The company also engages in financial services, offering project financing and investment solutions. Significant partnerships with government agencies and multinational corporations enhance its ability to secure large contracts and projects, ensuring consistent revenue generation. Moreover, LT's focus on innovation and technology-driven solutions positions it well to capitalize on emerging opportunities in sectors like renewable energy and smart city initiatives, adding to its long-term revenue potential.

Larsen & Toubro Limited Financial Statement Overview

Summary

Larsen & Toubro Limited shows strong financial health with robust revenue growth and profitability. The balance sheet is stable, though leverage could be reduced for enhanced stability. Cash flow performance needs improvement, particularly in cash generation.

Income Statement

Larsen & Toubro Limited has demonstrated robust income statement performance with a solid revenue growth rate of 16.6% from 2024 to 2025. The gross profit margin stands at 15.7%, while the net profit margin improved to 5.9% in 2025. The company also maintains a healthy EBITDA margin of 14.9%, indicating strong operational efficiency. Overall, the company's income statement reflects a positive growth trajectory and improved profitability.

Balance Sheet

The balance sheet of Larsen & Toubro Limited shows a stable financial position with a debt-to-equity ratio of 1.36, suggesting manageable leverage. The equity ratio stands at 25.7%, indicating a moderate level of equity relative to total assets. Return on equity is strong at 15.4%, reflecting efficient utilization of shareholder funds. Despite the solid metrics, there is room for improvement in reducing leverage further to enhance financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which decreased by 65.5% from 2024 to 2025. The operating cash flow to net income ratio is 0.61, indicating a moderately strong cash conversion. However, the free cash flow to net income ratio of 0.32 suggests potential challenges in converting profits into cash. The company needs to improve its cash flow generation to support sustainable growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.69T	2.60T	2.25T	1.86T	1.59T	1.39T
Gross Profit	976.42B	949.77B	839.74B	727.93B	613.70B	520.88B
EBITDA	309.66B	297.04B	268.39B	231.50B	199.98B	185.33B
Net Income	158.69B	150.37B	130.59B	104.71B	86.69B	115.83B
Balance Sheet
Total Assets	0.00	3.80T	3.40T	3.30T	3.20T	3.11T
Cash, Cash Equivalents and Short-Term Investments	605.94B	604.34B	486.32B	544.37B	460.25B	450.01B
Total Debt	0.00	1.32T	1.16T	1.21T	1.26T	1.35T
Total Liabilities	-1.15T	2.64T	2.37T	2.27T	2.25T	2.23T
Stockholders Equity	1.15T	976.56B	863.59B	893.26B	824.08B	758.69B
Cash Flow
Free Cash Flow	0.00	47.42B	137.50B	186.33B	160.53B	210.36B
Operating Cash Flow	0.00	91.61B	182.66B	227.77B	191.64B	230.74B
Investing Cash Flow	0.00	-155.18B	21.63B	-83.12B	-36.68B	-56.59B
Financing Cash Flow	0.00	65.57B	-254.13B	-115.72B	-151.81B	-152.74B

Larsen & Toubro Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3972.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LT, the sentiment is Positive. The current price of 3972.85 is above the 20-day moving average (MA) of 3800.72, above the 50-day MA of 3686.47, and above the 200-day MA of 3500.07, indicating a bullish trend. The MACD of 74.21 indicates Negative momentum. The RSI at 74.41 is Negative, neither overbought nor oversold. The STOCH value of 83.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LT.

Larsen & Toubro Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LT	―	₹5.33T	28.55	―	0.86%	15.74%	18.90%
HAL	―	₹3.26T	39.27	―	0.85%	2.07%	0.81%
CGPOWER	―	₹1.17T	115.57	―	0.18%	25.71%	-31.59%
BEL	―	₹3.02T	54.87	―	0.58%	14.23%	29.82%
SIEMENS	―	₹1.11T	45.40	―	0.39%	-13.58%	-0.28%
MAZDOCK	―	₹1.14T	52.38	―	0.62%	21.24%	-6.43%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Larsen & Toubro Limited Corporate Events

Larsen & Toubro Secures Major Orders in Minerals & Metals Sector

Larsen & Toubro’s Minerals & Metals (M&M) business has secured significant orders in India, including a 180 KTPA Aluminium Smelter project for Hindalco in Odisha and a 1 MTPA Coke Oven Battery project for Tata Steel in Jamshedpur. These projects highlight L&T’s engineering excellence and strengthen its role in shaping India’s industrial infrastructure. The M&M business also received multiple orders for mining and material handling equipment, further establishing L&T’s position in the industry.

Larsen & Toubro Ensures Compliance with SEBI Regulations for Q3 2025

Larsen & Toubro Limited has announced that it has complied with the SEBI (Depositories and Participants) Regulations, 2018, by furnishing details of securities dematerialized and rematerialized during the quarter ending September 30, 2025, to all stock exchanges where its shares are listed. This compliance ensures transparency and adherence to regulatory requirements, reinforcing the company’s commitment to maintaining robust governance standards.

L&T Partners with ACWA Power for Yanbu Green Hydrogen Hub

Larsen & Toubro Limited has signed a Memorandum of Understanding with ACWA Power to collaborate on the Renewables & Grid scope of the Yanbu Green Hydrogen Hub in Saudi Arabia. This project aims to establish a fully integrated facility powered by solar and wind energy, including solar PV, wind, and battery energy storage systems. The collaboration highlights L&T’s commitment to advancing renewable energy technologies and supporting global decarbonization efforts, aligning with Saudi Arabia’s strategic vision for clean energy and industrial decarbonization.

L&T Secures Major Contract with Adani Power for Thermal Power Units

Larsen & Toubro (L&T) has secured an ultra-mega contract from Adani Power Ltd to set up eight thermal power units, totaling 6,400 MW. This project, executed by L&T Energy – CarbonLite Solutions, reinforces L&T’s role in India’s energy infrastructure, leveraging its engineering and execution capabilities to support Adani Power’s vision of delivering efficient energy across India.