L&T Q1 preview: Slower execution to keep revenue flat; profit may rise 12%

Analysts have projected modest revenue growth and pressure on operating performance for L&T due to West Asia-related execution challenges.

L&T Q1 results preview: Larsen & Toubro (L&T) is expected to report a mixed bag of numbers in the April-June 2026 quarter (Q1FY27), driven by project-related disruptions due to the West Asia war. Brokerages expect L&T to post 6 per cent yoy growth in core EPC revenues, factoring in overseas execution disruption led by the US-Iran conflict and limited recovery in domestic water projects.

 

L&T’s top line is likely to see single-digit growth on a year-on-year basis due to elevated costs and macroeconomic headwinds.

 

West Asia remains a key market for Larsen & Toubro, contributing around 33 per cent of the company's revenue and 37 per cent of its order backlog. Earlier in March, the company had reported that while operations, billing, and order inflows remain stable, logistics disruptions and rising input/insurance costs are near-term concerns. 

 

 

Here's what brokerages expect from Larsen & Toubro Q1FY27 results:

Motilal Oswal Financial Services

 

Motilal Oswal Financial Services (MOFSL) expects the company's consolidated revenue to grow 1 per cent year-on-year, to ₹64,335 crore. On a quarterly basis, however, the brokerage expects the revenue to fall 22.3 per cent. MOFSL has maintained its 'Buy' recommendation for the stock.

 

Analysts expect Larsen & Toubro to report a net profit of ₹3,835 crore for Q1FY27, up 6 per cent year-on-year but down 28.5 per cent sequentially. The brokerage estimates Ebitda at ₹6,250 crore, reflecting a 1.1 per cent year-on-year decline and a 27.4 per cent quarter-on-quarter drop, indicating pressure on operating performance during the quarter. 

Kotak Institutional Equities

According to Kotak Institutional Equities, L&T Core EPC revenue is expected to grow 6 per cent y-o-y due to West Asia-linked disruptions. However, most the brokerage added that West Asia project sites are continuing execution using existing inventories, limiting the overall impact

 

The brokerage expects L&T to deliver a 9.1 per cent revenue growth y-o-y to ₹69,500 crore. On a sequential basis, the company's top line is expected to fall 16 per cent. 

 

L&T's adjusted PAT is expected to register a double-digit growth of 12.6 per cent on a y-o-y basis and a decline of 22.5 per cent sequentially. The brokerage expects L&T to report Ebitda of ₹6,746 crore for Q1FY27, reflecting 6.8 per cent year-on-year growth. However, on a sequential basis, Ebitda is projected to decline 21.6 per cent, indicating softer operating performance compared with the previous quarter.

   

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