Larsen & Toubro Ltd (L&T) is India’s biggest engineering and infrastructure conglomerate. From mega construction projects and defense to IT services and global manufacturing, L&T is building the future of India—and now, the world.
With a ₹5.79 lakh crore order book and over 52% of new orders from international markets, L&T is expanding beyond borders while riding India’s infrastructure boom.
About the Company
- Founded: 1946 in Mumbai by Henning Holck-Larsen and S.K. Toubro
- Chairman & MD: S. N. Subrahmanyan
- Headquarters: Mumbai, India
- Key Businesses/Subsidiaries:
- L&T Construction
- LTIMindtree (IT services)
- L&T Defence & Shipbuilding
- L&T Finance & Realty
- L&T Technology Services
L&T operates across over 50 countries and is crucial to India’s national infrastructure push and export-oriented growth.
Financial Performance
Q4 FY25 Results
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | ₹74,392 Cr | +11% |
| PAT (Profit) | ₹5,497 Cr | +25% |
| Dividend | ₹34/share | – |
| Order Inflows | ₹5.79 lakh Cr | Record |
| Intl. Order Share | ~52% of total | ↑ from 46% |
Q1 FY26 (June Quarter)
- Revenue: Up 16% YoY
- PAT: ₹3,617 Cr (+30% YoY)
- Order Book: +33% YoY growth
Forward-Looking Metrics
- EPS Growth Forecast: ~18% CAGR
- Revenue Growth Forecast: ~12.8% CAGR
L&T’s margins are expanding due to high-value global projects and better execution across sectors.
Past Stock Performance
- Current Price (July 2025): ~₹3,443
- 52-Week Range: ₹2,965 – ₹3,963
- 1-Year Gain: ~16–20%
- YES Securities Target: ₹4,294 (↑~20%)
- TipRanks Avg Analyst Target: ₹3,886 (↑~17%)
L&T has steadily outperformed Nifty Infra and broader indices, driven by earnings upgrades and order wins.
L&T Share Price Target 2025–2050
| Year | Min (₹) | Max (₹) | Forecast Driver |
|---|---|---|---|
| 2025 | 3,640 | 4,300 | Based on broker estimates and Q1 trend |
| 2026 | 4,500 | 5,200 | EPS + execution momentum |
| 2027 | 5,800 | 6,500 | Modeled at 18% EPS CAGR |
| 2028 | 7,000 | 8,000 | Continued infra growth and international orders |
| 2030 | 10,000 | 12,000 | Global expansion in EPC and IT |
| 2035 | 15,000 | 18,000 | Defense, energy, and smart city tailwinds |
| 2040 | 20,000 | 24,000 | Global infra footprint + recurring revenue |
| 2045 | 25,000 | 30,000 | Long-term cash flow compounding |
| 2050 | 30,000 | 35,000 | Full value unlock across verticals |
With consistent order inflow and global delivery capabilities, L&T may cross ₹10,000 by 2030 and ₹30,000+ by 2050.
Growth Drivers
- Mega Order Book: ₹5.79 lakh crore total backlog, largest in India
- International Projects Boom: 52% of new orders from overseas
- India Infra Push: Government-backed rail, metro, roads, and defense projects
- Diversification: Tech (LTIMindtree), Finance, and Green Energy arms add stability
- Execution Track Record: High-margin overseas contracts & scale advantage
Analyst Commentary
- YES Securities: ₹4,294 12-month target, citing order execution and growth
- TipRanks: ₹3,886 avg target with “Strong Buy” consensus
- Equitymaster: ₹6,000 by 2028 based on projected 18% earnings CAGR
“Strong global pipeline and domestic infra execution give L&T predictable long-term returns.” — Equitymaster
Risks & Concerns
- Domestic Tender Slowdown: Local project bidding still lagging
- Global Volatility: Currency risk and interest rate shocks
- Execution Risk: Delays or overruns on large contracts
- High Valuation: P/E ~32×; sensitive to earnings disappointment
Investment Suitability
Ideal For:
- Long-term investors seeking infrastructure + global exposure
- Those bullish on India’s economic and defense spending growth
Avoid If:
- You prefer consistent dividends and low-beta stocks
- You’re wary of cyclical or project-based businesses
FAQs
Q1. What’s L&T’s earnings outlook?
EPS expected to grow ~18% CAGR with strong execution and high-margin global orders.
Q2. Why is international order share important?
Overseas projects bring higher margins and scale; now 52% of all new order inflows.
Q3. Can L&T cross ₹10,000?
Yes—by 2030, based on continued 18% CAGR in EPS and global delivery expansion.
Q4. What’s the key short-term trigger?
Execution of Q1 FY26 orders, with 30% PAT growth already reported.
Conclusion
L&T is India’s ultimate infrastructure play—with global ambitions. A ₹5.79 lakh Cr order book, international expansion, and 18% earnings CAGR make it a rare combination of scale, stability, and upside.
If execution stays on track, L&T could reach ₹12,000 by 2030 and ₹30,000+ by 2050, offering high-conviction potential for long-term investors.
