Capital Goods – Jan-Mar’26 Earnings Preview – Jan-Mar’26 Earnings Preview
Published on 09 Apr 2026
We expect our capital goods coverage universe to report mixed performance in Q4FY26 driven by (1) healthy execution momentum across T&D-led product companies; (2) strong domestic execution for T&D-focused EPC players, while international business may face headwinds amid ongoing Middle East geopolitical tensions; (3) some softness in defense segment due to supply chain disruptions, but strong order visibility; (4) continued sluggishness in export-oriented businesses due to delays in dispatches and order finalization amid the Middle East conflict; and (5) persistent softness in consumables companies. Overall, we expect Q4FY26 revenue/EBITDA growth of 10.6%/6.9% YoY (12.4%/6.6% YoY ex-L&T), led by healthy execution in T&D-led product companies, partly offset by softness in defense and EPC segments. Geopolitical tensions lead to slippage in execution, supply chain disruptions and delay in order finalizations, which are likely to impact the export business of many of our coverage companies. Our top picks are Larsen & Toubro, Ingersoll-Rand India and Voltamp Transformers.
