Any current/future new fundraising through debt or equity?

The Realty business may explore external fundraising options, including debt and/or equity, to support land acquisition for upcoming residential or mixed-use projects. Funding for new business investments in areas like Data Centers, Green Hydrogen, Semiconductors, and Industrial Electronics will focus on strategic partnerships to optimize capital deployment. The approach includes a business-specific leverage strategy: - L&T Finance will use leverage to support growth. - Green Assets portfolio financing will be project-based. - Realty and new businesses’ leverage will align with adopted b

Any current/future capex/capital investment/strategic investment?

Rs 50 billion capex planned for Industrial Electronics, focusing on industrial automation, robotics, defense-related electronics, excluding consumer B2C and OSAT. Rs 30 billion targeted for Semiconductor business, mainly for acquisition of IP and lab facilities; no fabrication or OSAT involvement. Rs 150 billion earmarked for Green Hydrogen with strategic partnerships being evaluated to optimize capital deployment. Approximately Rs 100 billion allocated to the Data Center business, with investments subject to evolving business and partnership models. Rs 44 billion allocated for Realty, primari

Future growth expectations in sales/revenue/volumes?

Larsen & Toubro targets a revenue growth CAGR of 12% to 15% over the Lakshya 2031 plan (till FY31). For FY27, expected revenue growth is 10% to 12%, factoring a softer first half due to supply chain disruptions and geopolitical issues. Order inflows are planned to grow at 10% to 12% CAGR during the Lakshya plan, with a balanced 50-50 domestic and international mix, maintaining Middle East as a core market. Real estate (Realty) plans to scale up with a focus on premium housing and integrated townships, targeting an execution capacity peak of around 100 million square feet over five years.

Future growth expectations in earnings/operating earnings/profits/EPS?

Larsen & Toubro targets a 12% to 15% CAGR revenue growth over the Lakshya 31 plan period, largely driven by existing businesses. Operating EBIT margins are expected at 16% to 17%, reflecting structurally stronger and higher-quality growth. ROE guidance is at 16% to 17%, moderated by ongoing investments in Electronics, Green Energy, and Data Centers, which are currently in the investment phase. Profitable growth is expected especially in Precision Engineering & Manufacturing (P&M), with return ratios more than doubling between FY22 and FY26. The new businesses may start contributing to revenue

Current/ Expected Orderbook/ Pending Orders?

As of March 2026, Larsen & Toubro's order book stands at Rs 7.40 trillion, a 28% increase from March 2025. 92% of the order book is from Infrastructure and Energy sectors. Geographic split: 48% domestic and 52% international. Domestic order book of Rs 3.58 trillion comprises: - Central Government: 9% - State Government & Local Authorities: 22% - Public Sector Corporations/State-owned Enterprises: 30% - Private Sector: 39% (up from 21% in March 2025) International order book of Rs 3.82 trillion: - 78% Middle East - 22% Rest of the World Approximately 9% of the total order book funde

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Larsen & Toubro LtdQ1 FY26Construction

Larsen & Toubro Ltd Q1 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹4,189P/E: 31.3Market Cap: ₹5.4L CrSector: Construction

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Larsen & Toubro targets a revenue growth CAGR of 12% to 15% over the Lakshya 2031 plan (till FY31).
→For FY27, expected revenue growth is 10% to 12%, factoring a softer first half due to supply chain disruptions and geopolitical issues.
→Order inflows are planned to grow at 10% to 12% CAGR during the Lakshya plan, with a balanced 50-50 domestic and international mix, maintaining Middle East as a core market.
→Real estate (Realty) plans to scale up with a focus on premium housing and integrated townships, targeting an execution capacity peak of around 100 million square feet over five years.
→Data center capacity goals aim to increase from 100 MW initially to approximately 200 MW to attract larger clients.
→Electronics business to see capex of about Rs 50 billion focused on industrial and defense electronics, aligned with growing technology markets.
→Overall, growth is driven primarily by existing businesses with selective expansion in new, technology-led areas.

Margin guidance

Category 3

→Larsen & Toubro targets a 12% to 15% CAGR revenue growth over the Lakshya 31 plan period, largely driven by existing businesses.
→Operating EBIT margins are expected at 16% to 17%, reflecting structurally stronger and higher-quality growth.
→ROE guidance is at 16% to 17%, moderated by ongoing investments in Electronics, Green Energy, and Data Centers, which are currently in the investment phase.
→Profitable growth is expected especially in Precision Engineering & Manufacturing (P&M), with return ratios more than doubling between FY22 and FY26.
→The new businesses may start contributing to revenue only towards the end of the plan.
→Near-term margin profile is guided to remain stable for FY27, with expectations of gradual improvement post disruptions caused by geopolitical events.
→Recurring PAT grew by 5% YoY in Q4 FY26 despite margin pressures, indicating resilience in earnings.

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Fundraise plans

→The Realty business may explore external fundraising options, including debt and/or equity, to support land acquisition for upcoming residential or mixed-use projects.
→Funding for new business investments in areas like Data Centers, Green Hydrogen, Semiconductors, and Industrial Electronics will focus on strategic partnerships to optimize capital deployment.
→The approach includes a business-specific leverage strategy:
→ - L&T Finance will use leverage to support growth.
→ - Green Assets portfolio financing will be project-based.
→ - Realty and new businesses’ leverage will align with adopted business models.
→The parent company will provide near-term support for Realty land acquisition.
→Overall, capital raising is not a constraint; the company has credibility in financial markets to raise capital as needed.
→No explicit mention of immediate plans for large-scale debt or equity issuance beyond these strategic considerations.

Order book

Yes

→As of March 2026, Larsen & Toubro's order book stands at Rs 7.40 trillion, a 28% increase from March 2025.
→92% of the order book is from Infrastructure and Energy sectors.
→Geographic split: 48% domestic and 52% international.
→Domestic order book of Rs 3.58 trillion comprises:
→ - Central Government: 9%
→ - State Government & Local Authorities: 22%
→ - Public Sector Corporations/State-owned Enterprises: 30%
→ - Private Sector: 39% (up from 21% in March 2025)
→International order book of Rs 3.82 trillion:
→ - 78% Middle East
→ - 22% Rest of the World
→Approximately 9% of the total order book funded by bilateral/multilateral agencies.
→Rs 170 billion worth of orders were deleted in the quarter.
→Slow-moving orders constitute roughly 1% of the overall order book.
→Prospects pipeline for FY27 is Rs 17.8 trillion (Rs 9.1 trillion domestic, Rs 8.7 trillion international).

Capex plans

Yes

→Rs 50 billion capex planned for Industrial Electronics, focusing on industrial automation, robotics, defense-related electronics, excluding consumer B2C and OSAT.
→Rs 30 billion targeted for Semiconductor business, mainly for acquisition of IP and lab facilities; no fabrication or OSAT involvement.
→Rs 150 billion earmarked for Green Hydrogen with strategic partnerships being evaluated to optimize capital deployment.
→Approximately Rs 100 billion allocated to the Data Center business, with investments subject to evolving business and partnership models.
→Rs 44 billion allocated for Realty, primarily to develop commercial real estate; land acquisition support provided with potential external fundraising later.
→Rs 50 billion planned for upgrading hydrocarbon modular fabrication yard and shipbuilding facility.
→FY27 capex includes around Rs 25 billion for core PP&M business, Rs 10 billion for electronics, and Rs 10-20 billion for Data Centers.
→Capital raising is not a constraint; focus remains on responsible, risk-adjusted investments with measured returns.

How does Larsen & Toubro Ltd rank vs peers in Construction?

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