Shares of Larsen & Toubro (L&T) have surged following the release of its first‑quarter earnings for FY2025‑26, with the latest uptick fuelled by profit beating analyst expectations. The stock jumped nearly 4% mid‑week, making it the top gainer on the Nifty 50 and spotlighting renewed investor confidence.
L&T reported a consolidated net profit of ₹3,617 crore for the quarter, reflecting a 29.8–30% year-on-year growth well above market projections. Revenue grew by 15.5–16%, reaching ₹63,679 crore, while order inflows hit ₹94,453 crore, a 33% jump aided by strong international demand now contributing over 50% of total bookings, boosting the order book to ₹6.12 lakh crore.
On July 30, the stock climbed about 4% intraday to trade around ₹3,640–₹3,650 on BSE/NSE, following the upbeat Q1 results. Trading volumes surged sharply, hitting nearly 8.3 lakh shares versus a 50‑day average of around 1.17 lakh, underscoring strong buying interest. Motilal Oswal reaffirmed a ‘Buy’ rating with a target of ₹4,200, while other brokerages, including Goldman Sachs, raised their targets as well, some as high as ₹4,460.
Market sentiment overall was cautiously optimistic. Despite L&T’s strong results lifting the BSE Sensex by over 150 points and helping Nifty cross the 24,800 mark, broader investor sentiment remained reactive due to uncertainties around a potential India‑U.S. trade deal and an anticipated U.S. Federal Reserve policy decision. Concerns over rising tariffs and foreign institutional outflows also lingered.
Technically, the L&T share price recently triggered bullish crossover signals on both the 10‑day and 14‑day EMAs. Historical data suggests that such signals have led to average one‑week gains of about 2.8% in the past five years. The stock continues trading below its 52‑week high of ₹3,963, leaving room for upside momentum if positive execution continues.
Analysts remain upbeat due to L&T’s portfolio strength across EPC, energy, manufacturing, and IT / technology services anchored by subsidiaries such as LTIMindtree. Robust international demand and consistent project execution across core infrastructure verticals supported by a solid ₹6 lakh crore order pipeline continue to reinforce investor confidence.
In summary, L&T’s recent Q1 performance offers a compelling case for continued share price strength. While macro‑global headwinds linger, the company’s healthy fundamentals, strong order inflows, and positive broker sentiment support a forward‑looking bullish view. Investors will likely track upcoming results, global economic cues, and trade‑policy developments closely.
