StockFin.ai Try Free →

Larsen & Toubro Limited (LT)

Construction · Construction · NSE · Updated 5 July 2026

₹4,026.6 ↑ 12.02% (1Y)

🎯 Key Takeaways

Larsen & Toubro is undergoing a strategic restructuring of its Realty business through a slump sale to a newly created subsidiary, LTRPL, with shareholder approval required via a scheme sanctioned by the NCLT. This move aims to unlock value, improve operational focus, and enable independent fundraising for the real estate arm while allowing the core engineering division to operate with greater agility.
Revenue grew 5.1% QoQ to ₹71,450 in Q3FY26.
⚠️ Execution risk in the Realty scheme transfer, including potential delays or modifications requiring NCLT or SEBI approval.

Market Cap

₹5.38 L Cr

P/E Ratio

33.1

Div Yield

0.00%

Promoter

0.0%

✨ Ask AI About LT 📊 Interactive Charts

📖 The Story

Larsen & Toubro is undergoing a strategic restructuring of its Realty business through a slump sale to a newly created subsidiary, LTRPL, with shareholder approval required via a scheme sanctioned by the NCLT. This move aims to unlock value, improve operational focus, and enable independent fundraising for the real estate arm while allowing the core engineering division to operate with greater agility. The restructuring is part of a broader effort to streamline operations and enhance shareholder value creation.

📰 What's Happening

The company has advanced its scheme of arrangement for transferring the Realty Undertaking to LTRPL, with the NCLT having approved the arrangement on June 12 and 16, 2026. Shareholders will vote on the proposal at a meeting scheduled for August 4, 2026, with e-voting open from July 31 to August 3. The Board has been empowered to modify or withdraw the scheme without further shareholder consent if needed. This restructuring will separate the Realty business into a distinct entity, potentially improving governance and strategic clarity.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY24	Q1FY25	Q2FY25	Q3FY25	Q4FY25	Q1FY26	Q2FY26	Q3FY26
Revenue	67,079	55,120	61,555	64,668	74,392	63,679	67,984	71,450
Operating Profit	8,369	6,536	7,463	7,223	8,760	7,674	8,191	7,067
OPM %	10.8%	10.2%	10.3%	9.7%	9.6%	9.9%	10.0%	10.4%
Net Profit	5,013	3,445	4,099	3,974	—	4,318	4,678	3,825
EPS	₹31.98	₹20.26	₹24.69	₹24.43	₹39.98	₹26.30	₹28.54	₹23.37

Operating performance has shown mixed trends, with revenue growth moderating in recent quarters — Q3FY26 revenue of ₹71,450 Cr reflects a slight uptick from Q2FY26’s ₹67,984 Cr but remains below the peak seen in Q4FY25 (₹74,392 Cr). Operating margins have stabilized around 10%, though they declined slightly in Q3FY26 to 10.4% from 10.0% in Q2FY26, while net profit dipped to ₹3,825 Cr from ₹4,678 Cr in the prior quarter. EPS also softened to ₹23.37 in Q3FY26 from ₹28.54 in Q2FY26, indicating pressure on profitability despite stable top-line performance.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on revenue or margin expectations in the latest filings, but the Board’s authorization to modify or withdraw the Realty scheme without further shareholder approval suggests flexibility in execution. The company emphasized governance continuity during the AGM, reappointing key directors including Anil Vithal Parab and R. Shankar Raman, signaling stability in leadership. The focus remains on operational discipline and capital allocation efficiency, though no detailed financial targets were disclosed in the recent commentary.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	2023-2024	2023-2024	2024-2025	2024-2025	2025-2026
Equity Capital	275	275	275	—	275
Reserves	78,137	86,084	88,955	—	1.01 L Cr
Borrowings	1.20 L Cr	1.14 L Cr	1.24 L Cr	—	1.31 L Cr
Total Liabilities	2.30 L Cr	2.37 L Cr	2.51 L Cr	—	2.71 L Cr
Fixed Assets	14,865	15,587	13,562	16,998	17,874
Investments	39,583	44,384	47,445	54,805	52,678
Total Assets	3.23 L Cr	3.40 L Cr	3.57 L Cr	3.80 L Cr	3.91 L Cr

The balance sheet reflects a strengthening equity base, with reserves growing to ₹1.01 L Cr from ₹88,955 Cr in the prior period, indicating retained earnings accumulation. Borrowings have increased to ₹1.31 L Cr, up from ₹1.24 L Cr previously, suggesting ongoing capital investment or project financing. Total assets have risen to ₹3.91 L Cr, up from ₹3.57 L Cr, pointing to expansion in asset base. The capital structure appears stable, with equity growth outpacing debt increases, supporting a conservative leverage profile.

💰 Cash Flow Statement (₹ Cr)

Item	2020-2021	2020-2021
Operating	+5,387	+22,844
Investing	-10,152	-5,431
Financing	+1,672	-15,274
Net Cash Flow	—	—

⚖️ Peer Comparison — Construction

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Larsen & Toubro Limited	5.38 L Cr	33.1	—	—	—
Rail Vikas Nigam Limited	59,006	45.4	—	—	—
NBCC (India) Limited	25,331	49.1	—	—	—
IRB Infrastructure Developers Limited	24,518	3.8	—	—	—
Kalpataru Projects International Limited	21,476	39.0	—	—	—
Cemindia Projects Limited	15,453	44.3	—	—	—
KEC International Limited	14,602	31.4	—	—	—
Techno Electric & Engineering Company Limited	13,909	36.5	—	—	—
Engineers India Limited	13,868	33.4	—	—	—
Ircon International Limited	13,416	17.6	—	—	—

🔗 Peer Stock Analyses

RVNL NBCC IRB KPIL CEMPRO

⚠️ Risk Factors

1. Execution risk in the Realty scheme transfer, including potential delays or modifications requiring NCLT or SEBI approval. 2. Margin pressure in infrastructure projects, as evidenced by slight OPM decline in Q3FY26 despite stable revenue. 3. Market sentiment sensitivity, given the stock’s 12% one-year return and potential volatility around corporate actions. 4. Regulatory dependency, as the scheme’s success hinges on SEBI and NCLT clearances, with no guarantee of timely approvals.

📋 Recent Filings

🧠 Analyst's Read

Larsen & Toubro is in a pivotal phase of strategic realignment, with the Realty restructuring offering potential long-term value creation but near-term financial volatility. Investors should monitor shareholder voting outcomes, execution of the scheme, and trends in infrastructure order inflows and margin performance to assess the trajectory of operational recovery and capital efficiency.

Based on filing content and financial data. Not a recommendation.

✨ Deep Dive with AI on LT

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-05.

📡 Get AI alerts when LT files new disclosures

Track LT filings, board meetings, and corporate actions. Free email alerts at 5 PM.

Track LT — Free

Free account · No credit card · 2 AI queries/day