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Release
August 2026 · rev 1
Opportunities PMS · Published
As at 31 Aug 2026 · IST₹ · ₹ cr · BSE 500 TRI
Present
Internal working platform. Published figures are extracted from the August 2026 source package and reviewed; reference prices and fundamentals are unlicensed working data, not for redistribution. Past performance is not indicative of future returns.
Company Atlas/Industrials/Larsen & Toubro
NSE: LT· IndustrialsCore · Aug 26Large cap

Larsen & Toubro

Executor of the capex cycle at a cyclical multiple

Last close
₹3,749.10
29 Sept 2026 · reference
1D · 1M
−0.5% · −7.3%
price-only
Weight
2.4%
31 Jul 2026 · Aug rank 16
Thesis review
8 Sep 2026
Why We Own, p52
Coverage owner: Research (per book); latest results Q Jun-26Buoyant AIF I Top 30 Holdings - Aug 2026.pdf · p1Buoyant_Why_We_Own_What_We_Own_Sep2026.pdf (portfolio as of 31 July 2026) · p52Screener ↗Tijori ↗NSE ↗
OverviewBusiness & segmentsChartsFinancialsValuationThesisRisks & catalystsCompetitorsResearch & documents
Broker research · 2 reports

Sell-side views, extracted from the PDFs on file

Antique Stock Broking LimitedBUYdailymulti-company
Antique's Morning Presentation - From The Research Desk (Indian Banking Sector; NBFC 1QFY27 Review; Cement; FMCG)
19 Aug 2026 · Manjith Nair, Pashmi Chheda, Raju Barnawal · 86 pp · open PDF ↗
Target
₹4,736
At report
₹4,064
Vs our close
+26.3%

Larsen & Toubro appears only in the Valuation Guide appendix (no dedicated commentary), rated BUY.

Key points
  • Valuation Guide: TP Rs 4,736 (17% upside), Mcap $58.4bn, FY27E/FY28E/FY29E EPS Rs 147.1/197.1/232.0, P/E 27.6x/20.6x/17.5x, RoE (FY28) 17.0%

Extraction note: This is a very long (86-page) multi-sector daily; only sections/data relevant to tracked portfolio companies were extracted in depth. The daily's Banking sector report (pages 3-60) also covers non-portfolio banks in similar depth: Kotak Mahindra Bank, IndusInd Bank, Federal Bank,…

LKP ResearchBUYresult update
Larsen & Toubro Limited: Mixed performance, ordering momentum intact
30 Jul 2026 · Avinash Kumar Pathak, Anshul Jethi · 12 pp · open PDF ↗
Target
₹4,570
At report
₹3,931+16% printed
Vs our close
+21.9%

LKP Research maintains BUY on Larsen & Toubro after a mixed Q1FY27 where consolidated revenue grew 6.7% YoY (below the 10-12% guidance) and EBITDA margin contracted 92bps to 9.0% on Middle East supply-chain disruptions, even as PAT grew 14% YoY on higher other income. Order inflows remained robust (+14% YoY) taking the order book to a record INR7.79tn (+27% YoY), prompting the broker to trim FY27E/FY28E EPS by ~12.6%/5.5% while retaining BUY with a revised SoTP-based TP of INR4,570, valuing the core standalone business at 23x FY28E PER.

Thesis
  • Q1FY27 revenue grew 6.7% YoY to INR679bn, below the company's 10-12% full-year guidance, as PPM portfolio execution remained subdued (+2% YoY) amid Middle East geopolitical disruptions
  • EBITDA declined 3.2% YoY to INR61.2bn with margin contracting 92bps YoY to 9.0%, hurt by lower PPM execution, GCC supply-chain/logistics disruption, higher ECL provisions and IT-subsidiary forex headwinds; core PPM EBITDA margin was 7.0%, down 20bps YoY
  • PAT grew 14% YoY to INR41.2bn aided by a 75% YoY jump in other income and lower interest costs
  • Order inflows grew 14% YoY to INR1.08tn (international orders +27% YoY, including ultra-mega European offshore wind wins), taking the order book to a record INR7.79tn, up 27% YoY; domestic private-sector share of the order book rose to 40% from 27% a year ago
  • Portfolio reshaping under Lakshya 2031 on track: Nabha Power divestment completed 25 June 2026; Hyderabad Metro stake sale to a Telangana government entity now expected to close by 30 September 2026
  • Management retained FY27 guidance of 10-12% revenue/order-inflow growth and ~7.8% PPM EBITDA margin, expecting execution to improve from Q2FY27
Risks
  • Continued Middle East execution disruption -- ~50% of the order book is fixed-price, though management says contractual protections limit margin risk
  • Slower-than-expected easing of GCC supply-chain bottlenecks affecting the Energy Green (solar) segment, which saw revenue decline ~11% YoY
  • Elevated ECL provisions tied to Jal Jeevan Mission-related collections not reversing as expected
  • Execution softness persisting into H1FY27 before the anticipated pickup from Q2FY27
Q1FY27 highlights
  • Total revenue INR679.4bn, up 6.7% YoY (down 17.9% QoQ)
  • EBITDA INR61.2bn, down 3.2% YoY; EBITDA margin 9.0%, down 92bps YoY
  • Reported/Adjusted PAT INR41.2bn, up 14.0% YoY
  • Order inflow INR1,080.1bn, up 14.4% YoY; order book INR7,789.5bn, up 27.1% YoY
  • Adjusted EPS INR30.0, up 11.7% YoY
  • Net working capital-to-sales improved to 4.9% (Jun'26) from 10.1% a year ago
Catalysts
  • Pickup in project awards and execution from Q2FY27 as guided by management
  • Completion of the Hyderabad Metro divestment by 30 September 2026, further advancing the Lakshya 2031 portfolio clean-up
  • Scale-up of the ~8GW European offshore wind franchise (order book of INR570-600bn) as a new growth driver
  • Continued improvement in net working capital-to-sales (4.9% in Jun'26 vs 10.1% YoY) supporting capital efficiency and the 16-17% ROE target
Broker estimatesUnitFY25FY26FY27EFY28E
Total Sales₹ bn2,5572,8593,1173,614
EBITDA Margin%10.310.29.810.3
PAT Margin%5.95.65.66.2
EPS₹109117127163
P/Ex3633.63124.2
P/BVx6544
EV/EBITDAx25222016
RoE%16161516
RoCE%11121213
Dividend Yield%0.911.11.1

Valuation: SoTP: 23x FY28E PER on L&T standalone core engineering business, plus market-cap/PBV-based values for subsidiaries, less 20% holding company discount. SoTP value of INR4,570/share comprises L&T standalone at 23x FY28E PER (INR3,447/sh), L&T FZE at 20x FY28E PER (INR112/sh), LTM/L&T Technologies/L&T Finance at current market cap (INR642/INR200/INR366 per share), Infrastructure Development Projects at 1x P/BV (INR26/sh) and other subsidiaries at 15x FY28E PER (INR28/sh), less a 20% holding company discount (-INR251/sh). FY27E/FY28E EPS estimates were further trimmed by ~12.6%/5.5% given soft Q1 execution and near-term margin pressure; broker now builds in a revenue/PAT CAGR of 12.4%/17.9% over FY26-28E with EBITDA margin of 9.8-10.3%, and revised the SoTP-based TP to INR4,570.

Extraction note: All financials in the detailed tables are in INR mn (₹ mn); the Key Financials summary box on the cover page is in INR bn (₹ bn) as printed. Segment Energy Green YoY% and other segment YoY figures for Q1FY26 base period were blank/not computable in the source table for one row an…

Figures are transcribed from each broker's PDF as printed (units as the broker states them) and are the broker's estimates, not Buoyant's. "Vs our close" recomputes the target against the latest reference close (29 Sept 2026).

SWOT

Strengths · Weaknesses · Opportunities · Threats

Draft
Strengths
  • Record order book of Rs 7.78 trn at Jun-2026 (+27% YoY, ~2.7x FY26 revenue) gives multi-year revenue visibility; Q1FY27 inflows of Rs 1.08 trn (+14%) and a Rs 15 trn prospect pipeline for the remaining nine months of FY27 support the 10-12% inflow-growth guidance.
  • Balance-sheet discipline: net working capital fell to 4.9% of revenue in Q1FY27 (from 10.1%), cash and investments of Rs 85,100 cr, and non-core exits (Nabha Power, Hyderabad Metro for Rs 1,461 cr with debt refinanced by the buyer) free capital and guarantees.
  • Consolidated ROE of 16.1% (Q1FY27 slides) with FY26 net profit up 7% to Rs 18,954 cr; dividend payout of 33% and a 3-year ROE of 16% versus 14% five-year average show an improving return profile.
  • Direct play on India's FY27 central capex of Rs 12.2 lakh crore (up from Rs 10.97 lakh crore FY26 RE) and Middle East energy/renewables spending (42% of Q1 inflows), giving a diversified order pipeline that pure-domestic peers lack.
Weaknesses
  • vs Siemens: Siemens trades at ~93x P/E (screener, 7-Sep-2026) on Rs 24,846 cr revenue versus L&T at ~31x on Rs 2.86 lakh crore revenue; similar ROE (19.2% vs 15.9%) but three times the multiple.
  • vs ABB India: ABB is at ~102x P/E with 22.4% ROE; superior returns but priced for perfection, and its Rs 13,203 cr revenue base gives no exposure to the Middle East/energy EPC cycle L&T is winning.
Opportunities
  • Completion of the Rs 1,461 cr Hyderabad Metro stake sale to Hyderabad Metro Rail Ltd (deadline extended to 30-Sep-2026) and release of associated guarantees.
  • H2FY27 order-inflow and margin recovery that management guided for (H1 soft, H2 stronger) - Q2FY27 results in late Oct/early Nov 2026.
  • Conversion of the Rs 15 trn prospect pipeline, especially large Middle East hydrocarbon and offshore-wind awards, and any further non-core divestments.
Threats
  • Geopolitical/execution risk in the Middle East (37% of order book): West Asia disruptions already cut green-energy revenue 11% YoY in Q1FY27 and cost ~Rs 5,000 cr of Q4FY26 revenue.
  • Margin compression: EBITDA margin fell to 9.0% in Q1FY27 from 9.9%, FY26 core margin (8.3%) and revenue growth (12%) both missed guidance, and FY26 order inflows fell 3% YoY.
  • Capital-intensive diversification under Lakshya 31 (Rs 15,000 cr green hydrogen, Rs 10,000 cr data centres, Rs 3,000 cr semiconductors) could dilute ROE if returns lag the core EPC business.

Compiled from the approved one-pager (Why We Own What We Own, 8 Sep 2026): why-we-own → strengths, catalysts → opportunities, key risks → threats, peer caveats → weaknesses. Editorial mapping pending review. · author: compiled from the approved one-pager

Research reports · upload with a check step

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Only approved reports are readable from the company page; the reviewer must differ from the uploader. Files are hashed (duplicates skipped) and held in the private store.

Internal evidence

Buoyant sources for this name

  • August 2026 top-30 disclosure — rank 16, Industrials, Core. Buoyant AIF I Top 30 Holdings - Aug 2026.pdf
  • One-pager, "Why We Own What We Own" — p52, 8 Sep 2026. Buoyant_Why_We_Own_What_We_Own_Sep2026.pdf (portfolio as of 31 July 2026)
  • Sales playbook, Aug 2026 — holdings matrix (PMS/AIF I/AIF II, $31 Jul 2026). Buoyant_Capital_Sales_Playbook_Aug_2026_Full_Holdings.pdf

Original PDFs are in the supplied package on disk; private object storage is not configured, so source pages are referenced, not served.

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Ownership

Shareholding · Jun'26

Public Shareholding100.00%
Institutions62.39%
LIFE INSURANCE CORPORATION OF INDIA12.41%
SBI MUTUAL FUND4.69%
ICICI PRUDENTIAL MUTUAL FUND3.58%
NPS TRUST A/C UTI PENSION FUND LIMITED3.45%
HDFC MUTUAL FUND2.14%
NIPPON LIFE INDIA TRUSTEE LTD1.69%
UTI MUTUAL FUND1.58%
GOVERNMENT OF SINGAPORE1.58%
GENERAL INSURANCE CORPORATION OF INDIA1.47%
SBI LIFE INSURANCE CO. LTD1.11%
Non-Institutions37.60%
Individual < 2 lac18.81%