Scope

As at 31 Aug 2026 · IST₹ · ₹ cr · BSE 500 TRI

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-26Screener ↗Tijori ↗NSE ↗

Analysis · industrial rules · FY21–FY26

What the numbers say

data to 30 Jun 2026

Growth

3.9

Profitability

2.5

Balance sheet

1.7

Cash conversion

3.7

Valuation

2.4

Sales2,85,874 cr FY26

Net Profit16,084 cr FY26

Operating margin11.6% FY26

ROCE17.9% FY26

Revenue CAGR 3y

16.0%

5y 16.0%

Net profit CAGR 3y

15.4%

5y 6.8%

Operating margin

11.6%

3y avg 12.2%

CFO / PAT, 3y

1.00x

FCF ₹31,939 cr cumulative

ROCE

17.9%

3y avg 18.7%

Debt / equity

1.11x

interest cover 3.4x

Cash conversion cycle

-148 days

-203 days three years earlier

P/E

32.4x

PEG 2.1 on 3y PAT growth

Growth. Revenue compounded 16.0% a year over FY23–FY26, net profit 15.4%; the latest year grew 11.8% (profit 7.0%). · Tijori P&L, annual
Margins. Operating margin 11.6% in FY26, −0.6 pp against the prior three-year average. · Tijori P&L (OPM)
Earnings quality. Other income was 37% of pre-tax profit in FY26; core earnings are smaller than the headline. · Tijori P&L
Cash conversion. Operating cash flow was 1.00x reported profit across the last three years; free cash flow of ₹31,939 cr after capex. · Tijori cash flow vs P&L
Returns on capital. ROCE 17.9% and ROE 14.7% in FY26 (three-year average ROCE 18.7%). · Tijori ratios sheet
Balance sheet. Debt to equity 1.11x, interest covered 3.4x by EBIT in FY26. · Tijori ratios sheet
Working capital. Cash conversion cycle lengthened from -203 to -148 days over three years. · Tijori ratios sheet
Valuation. 32.4x trailing earnings, 13.7x EV/EBITDA, 4.4x book — 2.1x the three-year profit growth rate; dividend yield 1.1%. · Tijori valuation ratios at the latest price
Latest quarter. Q Jun-26: revenue 6.7% YoY, net profit 14.0% YoY; 4 of the last 4 quarters grew revenue year on year. · Tijori quarterly results

Forensic flags · Tijori

Accounting & Shareholding

Contingent Liabilities: Company does not have significant contingent liabilities
Depreciation Effect: Depreciation accounting is not leading to increase in profits
Pledge: Promoters have not pledged a significant portion of their holding
Other Income: Other income component is making ratios of the company look optically better
Promoter Holding: Promoter has not sold any shares in the last 90 days
Retail Holding: Retail has been selling the stock which is usually a good time to buy
Revenue Recognition: Company is converting accounting profit to cash

Price & Performance

ROE: Net profit margin is responsible for roe increase over last 10 years
Share price: Share price has increased over last 10 years due to earnings
Working Capital: Working capital of the company seems to be under control
Capex vs ROCE: Roce of the company has decreased even without significant capex
Current vs Historic Valuation: Company is trading at a discount to 3yr historic valuations
Debt: Company might have issues servicing its debt
Sales Growth: Sales of the company has grown at a good pace
Margin Stability: Margins of the company are volatile
ROCE Strength: Roce of the company is consistently strong
Balance Sheet Strength: Balance sheet of the company is moderately strong, but it might have issues paying it suppliers

Rules over the stated numbers only — CAGRs need positive start and end values, margins use the company's own OPM line, cash conversion is cumulative operating cash flow over cumulative profit for the last three fiscal years. Scores are 0–5 rule outputs, not a recommendation. Source: Tijori Finance normalised statements; Buoyant's own estimates are shown separately below and never blended in.

Cross-check

Same metric, every source · Larsen & Toubro

Where the app shows the same metric in more than one place, this table lists each figure with its period and definition. No two sources disagree on the same period and definition; every difference below is a period or definition difference.

Metric	Source	Period	Definition	Value	Verdict
Return on equity	Tijori ratio table	FY26	net profit ÷ year-end equity (Tijori)	14.72%	Different basis Figures differ because they measure different periods or definitions; each is labelled.
	Tijori screener	TTM	trailing 12 months (Tijori)	14.72%
	House model (one-pager)	FY26	net profit ÷ average equity, standalone	15.90%
Net profit	Tijori P&L	FY26	consolidated, annual	₹16,084 cr	Different basis Figures differ because they measure different periods or definitions; each is labelled.
	Tijori P&L	TTM Jun-26	trailing 12 months	₹19,817 cr
	Tijori screener	TTM	trailing 12 months	₹19,816 cr
	House model (one-pager)	FY26	standalone, annual	₹18,954 cr
	Tijori quarterly table	Q Jun-26	single quarter	₹4,123 cr
P/E	Tijori screener	TTM at 2026-09-28	price ÷ trailing EPS	32.10x	Different basis Figures differ because they measure different periods or definitions; each is labelled.
	Tijori ratio table	FY26 year-end	year-end price ÷ that year's EPS	29.97x
	House model (one-pager)	FY27E	FY27E / FY28E P/E (Buoyant sheet)	31.60x
P/B	Tijori screener	at 2026-09-28	price ÷ book value per share	4.87x	Different basis Figures differ because they measure different periods or definitions; each is labelled.
P/B	Tijori ratio table	FY26 year-end	year-end price ÷ book value	4.42x
Market cap	BSE master	2026-09-28	BSE full market cap	₹5,39,777 cr	Different basis Figures differ because they measure different periods or definitions; each is labelled.
	Tijori screener	latest Tijori refresh	price × shares	₹5,32,471 cr
	House one-pager	31-Jul-26	₹ lakh crore as printed	₹5,42,000 cr

Tolerance for a conflict: 1.5% on the same period and definition (3% for market cap, which moves with the price date). Tijori's ratio table uses its own definitions; the quarterly table and operating metrics carry the company's reported figures; the house model is standalone and dated.

Trend

Sales and net profit, FY

₹ crore. Actuals only; the last column is a TTM where labelled. Estimates are shown separately below with an "E" and never blended into this series.

Buoyant estimates

Model table from the research book

Buoyant estimates
₹ crore / %	FY24	FY25	FY26
Revenue (₹ cr)	221,113	255,734	285,874
EBITDA (₹ cr)	28,758	34,427	35,411
Net profit (₹ cr)	15,547	17,673	18,954
ROE (%)	n.a.	n.a.	15.9

Estimate columns (E) are in green italics.

Consolidated where reported · standalone not separately available in this source

Income statement (annual)
₹ crore unless %	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26	TTM Jun-26
Sales	1,19,683	1,35,220	1,45,452	1,35,979	1,56,521	1,83,341	2,21,113	2,55,734	2,85,874	2,90,137
Operating Expenses	1,03,128	1,14,218	1,23,235	1,14,907	1,36,595	1,59,446	1,93,764	2,27,261	2,52,739	2,53,866
Raw Material	40,992	47,006	46,789	41,334	51,677	63,285	75,320	92,584	97,683	34,552
Material Cost (%)	33.11	34.22	32.61	30.65	31.69	32.80	34.53	36.04	33.48	10.78
Employee Cost	15,271	17,466	23,114	24,751	29,696	37,214	41,171	46,769	52,187	53,592
Power & Fuel Cost	1,400	2,206	2,080	1,581	2,267	2,824	2,745	2,534	2,506	—
Operating Profit	16,555	21,002	22,217	21,072	19,926	23,894	27,349	28,473	33,136	36,272
Other Income	4,807	3,909	4,946	6,128	6,972	6,331	6,579	9,033	9,565	6,781
OPM (%)	13.83	15.53	15.27	15.50	12.73	13.03	12.37	11.13	11.59	12.50
Depreciation and Amortisation	1,929	1,923	2,462	2,904	2,948	3,502	3,682	4,121	4,365	4,364
Interest	7,917	9,547	11,269	12,060	9,552	9,750	9,822	10,281	10,638	9,928
Profit Before Tax	11,639	13,735	13,431	8,680	14,495	17,109	20,517	23,579	25,976	27,486
Tax	3,199	4,067	3,263	4,011	4,204	4,484	4,947	5,891	6,816	7,669
Net Profit	7,370	8,905	9,549	11,583	8,669	10,471	13,059	15,037	16,084	19,817
Number of shares(Crs)	140	140	140	140	141	141	137	138	138	—
Dividend Payout Ratio(%)	30.42	28.35	26.46	43.65	35.66	32.22	35.79	31.09	32.50	—

Consolidated where the company reports consolidated; Tijori Finance normalisation of company filings. Fiscal years end 31 March; "TTM" columns are trailing twelve months to the stated quarter. Quarterly growth is year-on-year (same quarter, prior year). Quarterly balance-sheet and cash-flow data are not disclosed and are not implied. General industrial/consumer/IT preset: growth, margins, ROCE/ROIC, working capital, FCF, net debt; P/E, EV/EBITDA.

Ratios

Sector-appropriate ratios

Ratio	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25	FY26
Interest Coverage Ratio	2.27	2.47	2.44	2.19	1.72	2.52	2.75	3.09	3.29	3.44
Cash Conversion Cycle	-173.00	-202.00	-205.00	-218.00	-262.00	-239.00	-203.00	-158.00	-126.00	-148.00
Inventory Days	14.92	13.68	15.20	15.26	15.52	13.72	12.71	11.10	10.20	10.98
Days Receivable	90.77	94.10	94.43	97.34	111.00	103.00	90.45	77.17	73.14	72.89
Days Payable	279.00	310.00	315.00	330.00	389.00	355.00	306.00	246.00	209.00	232.00
Debt to Equity Ratio	1.87	1.96	2.01	2.11	1.75	1.50	1.33	1.32	1.33	1.11
Free Cash Flow/Sales (%)	3.51	-10.06	-6.11	2.33	16.29	10.30	10.35	6.36	2.19	4.29
Free Cash Flow(est) (Crs)	3,835.00	-12,046.00	-8,255.00	3,394.00	22,151.00	16,124.00	18,984.00	14,056.00	5,611.00	12,272.00
Gross Margin (%)	66.38	66.89	65.78	67.39	69.35	68.31	67.20	65.47	63.96	66.52
Op Profit Margin (%)	15.24	13.83	15.53	15.27	15.50	12.73	13.03	12.37	11.13	11.59
Net Profit Margin (%)	5.53	6.16	6.59	6.57	8.52	5.54	5.71	5.91	5.88	5.63
ROCE (%)	12.89	14.58	16.29	15.29	14.19	15.17	16.26	19.00	19.21	17.85
ROIC (%)	27.82	24.61	34.16	28.96	18.60	29.24	33.50	50.68	78.57	134.00
ROE (%)	12.03	13.42	14.28	14.31	15.27	10.52	11.72	15.12	15.40	14.72
Net Profit Margin (%)	5.53	6.16	6.59	6.57	8.52	5.54	5.71	5.91	5.88	5.63
P/E	24.36	24.95	21.80	11.86	17.20	28.65	29.06	39.73	31.93	29.97
Price to Book	2.95	3.37	3.13	1.71	2.64	3.03	3.42	6.05	4.94	4.42
EV/EBITDA	12.99	13.26	12.36	8.80	11.60	13.12	13.24	18.20	15.64	13.65
Dividend Yield (%)	1.33	1.22	1.30	2.23	2.54	1.24	1.11	0.90	0.97	1.08

General industrial/consumer/IT preset: growth, margins, ROCE/ROIC, working capital, FCF, net debt; P/E, EV/EBITDA. Suppressed for this preset: none.