LT Share Price Jumps 4% After Strong Q1 Results: Buy or Sell Larsen & Toubro Stock Now?

Stock Market Today – Larsen & Toubro (LT) shares rallied over 4% in early trade on Wednesday following the company’s better-than-expected Q1 FY26 earnings, announced after market hours on Tuesday. The construction and engineering giant has posted robust growth in revenue, net profit, and order inflows—triggering renewed interest among investors. But the big question remains: should you buy or sell LT stock at current levels?

LT Q1 Results FY26: Strong Growth Across the Board

Larsen & Toubro reported a consolidated net profit of ₹3,617.19 crore, a sharp increase of 29.8% compared to ₹2,785.72 crore in the same quarter last year. This substantial rise was driven by strong execution across segments and healthy order inflows.

Total revenue from operations rose 16% YoY to ₹63,679 crore, with international business contributing ₹32,994 crore—accounting for 52% of total revenues. The company’s core Projects & Manufacturing (P&M) segment led the growth momentum.

Despite the rise in revenue, LT’s operating margins saw a minor decline. EBITDA grew 13% year-on-year to ₹6,318 crore, but EBITDA margin dropped slightly to 9.9% from 10.2%, indicating cost pressures or changing business mix.

Read Also: L&T Q1 Results FY26: Net Profit Surges 30% to ₹3,617 Cr, Revenue Grows 15.5% to ₹63,679 Cr

Massive 33% Jump in Order Inflows Fuels Market Sentiment

One of the key highlights of LT’s Q1FY26 results is the 33% YoY growth in order inflows, which reached ₹94,453 crore at the group level. This far exceeded analyst expectations and reflects strong demand across both domestic and international markets.

Analysts at JM Financial noted that LT’s order inflows were well above their estimate of ₹56,600 crore, and expressed confidence in the company exceeding its annual 10% order growth guidance. The uptick in infrastructure and energy projects, particularly in the Middle East, played a critical role.

The company bagged large contracts in thermal power, renewables, hydro, T&D, hydrocarbons, and real estate—demonstrating its diversified order book and execution capability.

Beat on Estimates: Analysts Turn Positive on LT Stock

Brokerage firm Motilal Oswal Financial Services (MOFSL) reported that LT’s revenue and net profit surpassed their estimates by 3% and 8%, respectively. The company also delivered a significant beat on core Engineering & Construction (E&C) order inflows, which came in at ₹76,600 crore versus their estimate of ₹63,100 crore.

MOFSL highlighted that the execution ramp-up in international projects, sustained net working capital at 10.1% of sales, and improved Return on Equity (RoE) to 17% are major positives for long-term investors.

LT Share Price Outlook: Buy or Book Profits?

With the LT share price surging post results, investors are wondering whether to buy or hold. Most analysts maintain a positive outlook on LT stock, citing strong fundamentals, improving execution, and robust project pipeline.

What works in LT’s favor:

• Strong Q1 results with growth in profit and revenue
• Significant order inflow beat
• Global diversification of projects
• Healthy return ratios and cash flow discipline

However, investors must watch out for margin pressures, rising input costs, and geopolitical risks in the Middle East which could impact execution in key projects.

Conclusion: Should You Buy or Sell LT Stock?

Larsen & Toubro has once again demonstrated why it remains a top pick in India’s capital goods and infrastructure space. With solid Q1 performance and a promising order book, the long-term outlook for LT stock remains bullish.

Short-term investors who entered at lower levels may consider partial profit-booking given the recent rally. Long-term investors can stay invested or accumulate on dips, especially if the company continues to maintain its growth momentum in upcoming quarters.

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FAQs:

Q1. Why is LT share price rising today?
LT share price gained 4% following strong Q1 FY26 results showing 30% YoY profit growth and higher-than-expected order inflows.

Q2. Is LT stock a good buy after Q1 results?
Yes, most analysts remain bullish on LT due to its robust earnings, strong project pipeline, and execution strength.

Q3. What is the revenue of LT in Q1 FY26?
LT reported a revenue of ₹63,679 crore in Q1 FY26, a 16% YoY increase.

Q4. What are LT’s Q1 net profits?
The company posted a consolidated net profit of ₹3,617.19 crore, up 29.8% from the previous year.