Despite the recent uptick, the stock remains under pressure over a broader timeframe, falling 6.06% in the past week, -16.63% over one month and -10.57% in three months. The correction was largely driven by concerns around project execution in the Middle East and the potential impact of lower capital expenditure in the region on future order inflows and revenue growth.
A foreign brokerage has maintained its 'Buy' rating on the stock with a price target of Rs 4,420 per share, even as it flagged near-term execution challenges amid ongoing geopolitical tensions. The brokerage expects some order deferrals in the coming quarters but believes the company’s medium-term opportunity pipeline remains intact.
It has, however, trimmed its revenue estimates for the March quarter, citing slower execution toward the end of the period. The impact of weaker execution is also expected to carry into Q1 FY27.
Further, the brokerage has revised its core order inflow growth estimate for FY27 to 1.1% from 7.7% earlier, factoring in subdued international ordering activity for at least a month.
Larsen & Toubro is an Indian multinational engaged in EPC projects, hi-tech manufacturing, and services, operating across multiple geographies.
On a consolidated basis, net profit of L&T declined 4.28% to Rs 3215.11 crore while net sales rose 10.49% to Rs 71449.70 crore in Q3 December 2025 over Q3 December 2024.