L&T Shares Surge After Q1 Earnings, Analysts Affirm Growth Potential Amid Geopolitical Headwinds

L&T Shares Surge After Q1 Earnings, Analysts Affirm Growth Potential Amid Geopolitical Headwinds​

Larsen & Toubro (L&T) shares rose nearly 4% to Rs 3,967 on the BSE in Wednesday’s early trade after the engineering giant reported robust first-quarter results for FY27. The company posted a strong 14% year-on-year (YoY) rise in net profit, reaching Rs 4,123 crore.

The stock performance follows a period of volatility, having fallen over 8% in a single month and 7.5% so far in FY26. The positive market reaction underscores the strength perceived in L&T’s order book and core operational execution, even as geopolitical conflicts pose challenges.

L&T Q1 Results Detail: Profit Surges as Order Intake Rises​

L&T reported a 7% YoY increase in revenue from operations for the April-June quarter of FY27, totaling Rs 67,942 crore compared to Rs 63,679 crore in the corresponding quarter of FY26. The company’s international segment was highly successful, contributing Rs 34,393 crore, which is nearly 51% of the total revenue.

In terms of order inflow, L&T secured orders worth Rs 1.08 lakh crore during Q1, representing a 14% YoY growth. International orders contributed significantly to this inflow, standing at Rs 60,702 crore (56%). As on June 30, 2026, the company's consolidated order book had risen by 5% sequentially to Rs 7.79 lakh crore, with international orders making up 52%.

Brokerages Remain Bullish Despite Geopolitical Hurdles​

Analysts are largely retaining positive views on L&T, citing its strong underlying performance and diversification of business wins. Goldman Sachs highlighted the company’s good standing in a tough macro environment, noting that core order inflows significantly surpassed expectations. However, the brokerage acknowledged that operating margins experienced a slight slip due to project timeline pressures caused by the West Asia conflict.

Motilal Oswal noted that L&T’s consolidated results and the Core EPC segment outperformed their estimates for FY27 Q1. The brokerage saw healthy positives in the earnings print, including 14% YoY growth in core E&C order inflows and a stable margin of 7.6%. Despite lower ordering from the Middle East, Motilal cited stable domestic private sector inflows and diversification into European geographies as key strengths.

JM Financial also maintained its constructive view, noting that L&T’s core EBITDA was 10% ahead of estimates, propelled by strong order inflow beats. The firm pointed to a major ultra-mega order for offshore wind by TenneT as a key indicator of robust business prospects.

Long-Term Growth Trajectory Hinges on Order Momentum​

The domestic brokerage firms are bullish on L&T's sustained growth potential. JM Financial stated that L&T is well-placed to deliver over 16% CAGR in EBITDA across FY26-28, supported by momentum in Middle East ordering and expected margin stabilization from the second half of FY27 onwards.

Motilal Oswal increased its target price to Rs 4,550 apiece from Rs 4,500, implying an upside potential of nearly 19%. Similarly, JM Financial reduced its target price to Rs 4,640 from Rs 4,700, suggesting a 21% upside opportunity.

Nuvama maintained a ‘Hold’ rating despite the strong Q1 performance, noting that while L&T delivered 2% growth in core PPM revenue amid instability, the outlook for the first half of FY27 remains potentially soft due to ongoing Middle East-related disruptions.