Larsen & Toubro (L&T) share price
Thus far in the calendar year 2026, L&T has outperformed the market by falling less than 1 per cent, as against a sharp 11 per cent decline in the BSE Sensex. The stock hit a 52-week high of ₹4,440 on February 24, 2026.
At 12:06 PM; L&T was up 1.5 per cent at ₹4,105.70, as compared to 0.03 per cent decline in the BSE Sensex.
Why has L&T outperformed market?
India’s defence manufacturing sector received a major boost as the Defence Ministry invited bids from Tata Advanced Systems, L&T and Bharat Forge for the ₹15,000-crore Advanced Medium Combat Aircraft (AMCA) programme, marking the first time a major fighter jet project was opened exclusively to private players while keeping Hindustan Aeronautics (HAL) out.
According to ICICI Securities, the AMCA opportunity is strategically significant for L&T, as it strengthens the company’s position in India’s rapidly expanding defence and aerospace manufacturing ecosystem. L&T already has deep capabilities in precision engineering, aerospace structures, missile systems, naval platforms and defence electronics, making it a strong contender for such a complex programme. If selected, the project could provide long-term revenue visibility over the next decade, enhance technology capabilities, and improve L&T’s share of high-value defence manufacturing, the brokerage firm said in a note.
L&T is among top fundamental picks of the month of the brokerage firm. Analysts have a ‘BUY’ rating on L&T with a target price of ₹4,955 per share. L&T is India’s largest engineering and construction company with a diversified presence across EPC projects, hitech manufacturing and services, spanning infrastructure, heavy engineering, defence engineering, power, hydrocarbons and services. Overall, company expects to achieve 10-12 per cent year-on-year (YoY) growth in gross revenue for FY26 with target of 16-17 per cent ROE in the medium term, the brokerage firm said.
L&T – Growth, opportunities
The Gulf Cooperation Council (GCC), accounting for nearly one-third of L&T’s annual revenue of $32 billion, is a vital market for the company. The conflict in the region has barely impacted L&T. It is business as usual at the 100 odd project sites there, with no material disruption to invoicing or collections.
The domestic market, which accounts for approximately half of the order book, offers resilience against global uncertainties. While Government of India is committed to continue its focus on infrastructure investments, its industrial focus is strategically shifting towards new-age technologies and sustainability, aiming to transform the country into a global manufacturing and innovation hub by 2047. These are expanding the horizon of opportunities for the company, said S. N. Subrahmanyan, Chairman and Managing Director of L&T in the FY26 annual report.
Looking ahead, the management expects sustained demand across infrastructure, hydrocarbon, renewables, power transmission & distribution, power capabilities and water treatment in both domestic and international markets. The passage of the SHANTI (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) Act is also expected to spur interest in small modular reactors, an area of relevance to the Company given its decade’s long expertise in engineering and manufacturing critical reactors and pressure vessels, including for the nuclear sector.
In India, early signs of renewed private investment across sectors such as energy transition, real estate, data centers, electronics, semiconductors and select traditional industries are expected to create additional opportunities for the Company, the management said. ======================================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.