Shares of Larsen & Toubro (L&T), a leading engineering and construction conglomerate in India, surged nearly 5% on Friday, May 9, 2025, following the company’s impressive financial results for the fourth quarter of the fiscal year 2024-25 (Q4FY25). The stock climbed to ₹3,477.55 on the Bombay Stock Exchange (BSE), showcasing a significant rebound amid a generally weak market atmosphere influenced by geopolitical tensions in the region.
For the quarter ended March 31, 2025, L&T reported a consolidated profit after tax (PAT) of ₹5,497 crore, marking a remarkable 25% increase from ₹4,396 crore in the same period last year. This growth was driven by higher revenues and an exceptional gain that contributed to the overall financial performance.
L&T’s revenue from operations also saw a substantial rise, reaching ₹74,392.28 crore in Q4FY25, up from ₹67,078.68 crore year-on-year. Additionally, the earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 13% to ₹8,203 crore, with the EBITDA margin remaining stable at 11%, compared to 10.8% in Q4FY24.
R Shankar Raman, L&T’s President, Whole-time Director, and Chief Financial Officer, expressed optimism about the company’s performance, stating, "FY25 has been an outstanding year for the company, and L&T exceeded most of the financial goals that it set for itself during the year." He noted that this achievement is particularly commendable given the challenging environment in which the company operated.
In terms of order inflows, L&T reported an impressive ₹89,613 crore for Q4FY25, reflecting a 24% increase year-on-year. The company’s overall order book stood at ₹5.79 trillion at the end of the fiscal year, up 22% from the previous year, with international orders accounting for 46% of the total. The management indicated that international orders during the quarter reached ₹62,739 crore, constituting 70% of the total order inflow.
The board of directors also recommended a final dividend of ₹34 per equity share for the financial year ended March 31, 2025, an increase from the previous year’s final dividend of ₹28 per share. This dividend is expected to be a positive signal for investors, reinforcing confidence in the company’s robust financial health.
Analysts have reacted positively to L&T's strong quarterly performance, with many upgrading their ratings on the stock. Kotak Institutional Equities raised its price target for L&T from ₹3,400 to ₹3,650, highlighting the company’s strong guidance and order pipeline as indicators of resilience against broader macroeconomic trends. The brokerage firm emphasized that L&T's ability to secure large-scale projects is a testament to the confidence clients have in the company.
Emkay Global has maintained a 'Buy' rating on L&T, citing the attractive risk-reward profile of the stock despite reducing its price target by 12% to ₹4,000. The brokerage noted that L&T's Q4 performance was bolstered by strong international project execution, with a promising prospect pipeline of ₹19 lakh crore for FY26, up from ₹12.1 lakh crore in FY25.
However, some analysts expressed caution regarding potential challenges. Emkay Global’s Senior Research Analyst, Ashwani Sharma, pointed out that geopolitical tensions could lead to slowdowns in execution and delays in order inflow conversion, which remain key concerns for the near future. Despite these challenges, the overall sentiment surrounding L&T remains positive, with expectations of continued growth driven by ongoing investments in public infrastructure and private sectors.
As L&T navigates the complexities of the current economic landscape, the company’s management has set ambitious targets for the upcoming fiscal year. They anticipate a revenue growth of 15% and a 10% increase in order inflows for FY26. The management also aims for a core margin guidance of 8.5%, reflecting their commitment to maintaining operational efficiency.
In light of these developments, L&T continues to position itself as a leader in the engineering and construction sector. With a diverse portfolio and a strong focus on quality and customer satisfaction, the company is well-equipped to capitalize on emerging opportunities in a recovering global economy.
Overall, L&T's recent financial results and positive market response highlight the company's resilience and growth potential, even amidst challenging external conditions. As the company prepares for the future, investors and analysts alike will be closely monitoring its performance and strategic initiatives in the coming quarters.
