Larsen & Toubro shares fell nearly 4 per cent in early trade on Wednesday after its March quarter results showed a decline in profit and a cautious near-term outlook, which appeared to unsettle investors despite steady revenue growth. The stock dropped to an intraday low of ₹3,900 and was trading at ₹3,922.70 at 9.27 am on the NSE, down from the previous close of ₹4,054.50.
L&T shares
The company reported driven by execution momentum across segments. However, net profit declined 3 per cent y-o-y to ₹5,326 crore, indicating margin pressures and a mixed operating performance during the quarter.
Brokerages highlighted that while order inflows remained resilient, near-term growth visibility has moderated. Motilal Oswal said the company’s Lakshya 2031 strategy, which includes investments in new-age areas, could be return dilutive in the near term. The brokerage revised its estimates to factor in lower order inflows and execution in FY27, along with expected divestments of Hyderabad Metro and Nabha Power by Q1FY27. It added that execution in H1FY27 is likely to remain soft due to supply chain disruptions linked to geopolitical issues, with recovery expected in H2. The brokerage now has a sum-of-the-parts-based target price of ₹4,550.
Global brokerage Bernstein maintained an outperform rating with a target price of ₹4,637, noting that order inflows continued to beat expectations despite a high base. However, it flagged that revenue missed estimates due to geopolitical disruptions and weakness in the domestic water segment, while margins came in slightly below expectations.
Jefferies retained its buy rating and raised the target price to ₹4,885 from ₹4,500, citing long-term growth visibility under the Lakshya 2031 roadmap. The brokerage highlighted plans to invest in data centres, electronics and semiconductors, along with a potential real estate IPO as part of the company’s value creation strategy.
On the other hand, Nomura downgraded the stock to neutral and cut its target price to ₹3,940, citing subdued Q4 performance and a less optimistic outlook on FY27 order inflows. It also reduced its earnings estimates for FY27 and FY28 by 8 per cent.
HSBC maintained a hold rating while lowering its target price to ₹3,800, noting that although order inflows and revenue remained strong, the overall outlook reflects near-term challenges.