Larsen & Toubro (LT IN) – Q2FY27 Result Update – Healthy execution and order inflow amid challenges – BUY
Published on 28 Oct 2026
Management retained FY27 guidance of 10-12% growth in order inflows and revenue, with a 7.8% EBITDA margin target for the P&M portfolio. While the record order book and diversification into new growth platforms support the medium-term outlook, margin recovery and Middle East-related execution challenges remain key monitorables. The stock trades at 21.0x/18.2x FY28E/FY29E P/E. We roll forward to Sep’28E and maintain ‘Buy’ rating with a revised SoTP-derived TP of INR4,437 (INR4,425 earlier), valuing the core business at 21x Sep’28E earnings (22.5x Mar’28E earlier).
