Larsen & Toubro (L&T) share price movement
In the past two weeks, the stock price of the civil construction major rallied 11 per cent. It bounced back 30 per cent from its 52-week low of ₹3,288.65 touched on March 23, 2026. The stock hit a 52-week high of ₹4,440 on February 24, 2026.
Why L&T outperformed market?
L&T has significant presence in the West Asia through its hydrocarbon, power transmission & distribution (T&D), renewables and core urban infrastructure businesses. L&T Group achieved record order inflows of ₹4.36 trillion during the financial year 2025-26 (FY26), registering a growth of 22.1 per cent over the previous year.
The growth was driven by the strong investment momentum in West Asia, sustained policy-led capex impetus by the Government of India, and an increasing participation of private sector enterprises in the domestic market. The buoyancy in West Asian businesses resulted in international orders accounting for 58 per cent of total order inflows, reflecting a stable geographic mix.
L&T’s core EPC business is closely linked to infrastructure investments by governments and capital expenditure by private and public sector entities.
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.
Brokerages view on L&T
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, the 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, according to ICICI Securities. The stock is among top picks of the brokerage firm with a ‘Buy’ rating and target price of ₹4,955 per share.
L&T continues to witness strong domestic capex momentum across infrastructure, thermal power, hydrocarbons, and manufacturing, supported by rising electricity demand and AI-led data center expansion. On the back of demand, the company has committed a capex of ₹42,400 crore by FY31, led by green hydrogen, data centers, industrial electronics, hydrocarbons and real estate with benefits accruing in the long term. Analysts at Elara Capital believe the previous five-year plan witnessed an accelerated growth phase and future performance would be based on its ability to scale up new businesses. ===================================================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.