L&T Q4 results preview: Analysts eye 13% jump in profit; check key factors

L&T Q4 results preview:  Construction giant Larsen & Toubro (L&T) is scheduled to announce its financial results for the fourth quarter of the financial year 2024-25 (FY25) on Thursday, May 8, 2025.

L&T Q4FY25: Profit expectations

Analysts, on average, expect L&T to report healthy results in Q4FY25. They expect the company's revenue to grow 16 per cent Year-on-Year (Y-o-Y) to ₹77,789.05 crore from ₹67,078.7 crore reported in the corresponding quarter of the previous fiscal year (Q4FY24), and profit after tax (PAT) to climb by 13.20 per cent Y-o-Y to ₹4,870.525 crore from ₹4,302.5 crore reported in Q4FY24.

 

Meanwhile, an average of four brokerages shows that earnings before interest, taxes, depreciation, and amortization (Ebitda) may rise by 14.75 per cent Y-o-Y to ₹8,288.175 crore from ₹7,234 crore reported in Q4FY24.

 

L&T Q4FY25: Key things to watch

Key monitorables during L&T's earnings, analysts said, include the domestic order pipeline, margin performance, and the working capital cycle.The company has received its largest order to date for $4 billion from QatarEnergy.

Here’s what brokerages are expecting in Q4FY25 from L&T:  Motilal Oswal Financial Services (MOFSL):

Analysts at MOFSL expect L&T's consolidated revenue growth of 19 per cent YoY, led by 21 per cent YoY revenue growth for Core E&C.

 

"We expect a Core E&C Ebitda margin of 9 percent, down 50bps YoY (on a high base) / up 140bps QoQ, as more projects reach the margin recognition threshold and as legacy orders near completion. We would also look out for execution ramp-ups in Saudi projects and trends in the GCC order pipeline," analysts at MOFSL said in a note.

 

Key monitorables during L&T's earnings, they said, include domestic order pipeline, margin performance, as well as the working capital cycle. The company has received its largest order to date for $4 billion from QatarEnergy.

 

Analysts expect the company's revenue to grow 19.3 per cent Y-o-Y to ₹80,000 crore in Q4FY25. They expect the company’s Ebitda to rise to ₹8,300 crore, up 15.28 per cent Y-o-Y, and PAT at ₹4,800 crore, up 11.6 per cent Y-o-Y.

 

Nuvama:

Analysts at Nuvama said, "While the Government's (GoI's) capex/initiatives and ME hydrocarbon/power T&D/railways/smart cities/water, etc., ordering shows strong momentum, private capex is yet to show its best."

 

"FY26's strategic plan is to focus on making subsidiaries self-sustainable, building a strong presence in green energy (hydrogen, battery storage, etc.) and non-core exits. With robust order inflow growth, execution completion of legacy projects, refinancing of Hyderabad metro, etc., margins may see ramping up but at a slower pace," analysts wrote in a research note.

 

The company retained FY25 guidance of 10 percent/15 per cent OI/sales growth with 8.2 per cent core OPMs (bottomed out, in our view). "We saw L&T report a large OI in H2FY25 and hence is likely to surpass its own guidance."

 

They forecast revenue at ₹74,562.6 crore in Q4FY25, an 11 per cent increase Y-o-Y, with Ebitda at ₹7,892.4 crore, up 9 per cent Y-o-Y, and PAT at ₹4,909.3 crore, up 14 per cent Y-o-Y.

Kotak Institutional Equities (KIE):

Analysts at KIE expect 18 percent/16 per cent Y-o-Y growth in core EPC/consolidated revenues, "as we bake in weakness in domestic execution more than getting compensated by the strength in overseas execution."

 

"Do note that half of the core E&C revenues for L&T are from center/state/CPSE customers. The order inflow is expected to continue at a healthy 23 per cent Y-o-Y growth coming from the Middle East," analysts at KIE said in a note.

 

They expect the core E&C business' Ebitda margin at 9.8 per cent over higher execution in 4Q of any FY, which is 50bps higher Y-o-Y over benign commodity/crude prices, albeit with competitive pressure leading to aggressive bidding. Execution of mega-hydrocarbon projects won last year may also not be margin-accretive at a segmental level.

 

They expect the company's revenue to grow 16.5 per cent Y-o-Y to ₹78,113.6 crore in Q4FY25. They expect the company’s Ebitda to rise to ₹8,390.3 crore, up 16 per cent Y-o-Y, and PAT (adjusted) at ₹4,912.8 crore, up 14.2 per cent Y-o-Y.

HDFC Securities:

Brokerage firm HDFC Securities, in its research note, forecasted L&T to report its revenue at ₹78,480 crore in Q4FY25, a 17 per cent increase Y-o-Y, with Ebitda at ₹8,570 crore, up 18.5 per cent Y-o-Y, and APAT at ₹4,860 crore, up 13 per cent Y-o-Y.