Shares of Larsen & Toubro (L&T) surged 3.6 per cent in early trade on Thursday to emerge among the top gainers on the Nifty 50, tracking investor reaction to the December quarter earnings and largely positive brokerage commentary on its medium-term prospects.
At 10.04 am, it was trading at ₹3,884 on the NSE, up 2 per cent, after touching an intraday high of ₹3,932.60 against the previous close of ₹3,794.
On the standalone front, L&T reported an 8.3 per cent year-on-year rise in revenue to ₹37,902 crore in Q3, while net profit climbed nearly 18 per cent to ₹2,404 crore. However, on a consolidated basis, profit after tax slipped 4.3 per cent to ₹3,215 crore, weighed down by a one-time labour-related provision.
Brokerages remained largely bullish on L&T, acknowledging that Q3 execution in the core engineering and construction business was softer than expected.
Nuvama Institutional Equities said L&T delivered 11 per cent year-on-year core revenue growth, slightly below Street expectations, while core operating margins improved 50 bps to 8.1 per cent. The brokerage noted that management is banking on a sharp pickup in project and manufacturing execution in the March quarter to meet FY26 revenue growth guidance of 15 per cent.
It noted a strong ₹7.3 trillion backlog, nearly 3.9 times FY25 core sales, and a robust order pipeline of ₹5.92 trillion. Nuvama retained buy call at an increased target price from ₹4,680 to ₹4,850.
Citi maintained buy at ₹4,810, stating that while Q3 revenue was soft, execution is expected to improve meaningfully in the fourth quarter. The brokerage added that L&T’s upcoming five-year strategy announcement after Q4 results could provide further clarity on growth and return-on-equity drivers.
Jefferies also reiterated buy rating with a target price of ₹4,715, expecting order inflows to exceed estimates and execution to gather pace. It highlighted that engineering and construction margins improved despite strong international revenue growth and said management remains confident of crossing 10 per cent FY26 growth guidance.
Jefferies flagged the five-year plan, potential semiconductor investments and the resolution of the Hyderabad Metro project as key near-term triggers for the stock.
Meanwhile, Motilal Oswal stressed that L&T’s consolidated Q3 earnings were marginally below its estimates due to weaker-than-expected execution in the core engineering and construction segment, but pointed to healthy order inflows of ₹1.2 trillion across domestic and overseas markets, which should support revenue visibility. The brokerage raised its target price to ₹4,600 from ₹4,500 and retained its buy rating, even as it trimmed valuation multiples slightly to factor in moderated execution and margin assumptions.
JM Financial echoed a similar view, noting that while near-term performance was impacted by softer core E&C execution, a rebound is expected from Q4 onwards. The brokerage retained buy at a revised target price of ₹4,600.
With most brokerages staying constructive on L&T’s order book strength, execution outlook and strategic roadmap, investors appeared to brush aside the one-off impact on consolidated profits, pushing the stock higher and placing it among the leading gainers on the benchmark index in early trade.
Published on January 29, 2026