Larsen & Toubro (L&T) is expected to report a net profit growth of 7% to 17% year-on-year (YoY) in the fourth quarter of FY25, driven by robust execution and strong order inflows.
Financial Projections
- Net profit (PAT) is estimated to be between ₹4,692 crore and ₹5,055 crore, according to brokerage estimates.
- Revenue growth is projected between 11% and 17% YoY, with topline figures ranging from ₹74,563 crore to ₹78,490 crore.
- EBITDA margin is expected to be 10.7%, reflecting cost management improvements and operational leverage.
Key Drivers Behind Growth
- Strong execution of overseas projects, particularly in the Middle East, is expected to compensate for domestic execution challenges.
- Healthy order inflow growth of 23% YoY, with significant contributions from hydrocarbon, power transmission, railways, smart cities, and water infrastructure projects.
- Government-led capital expenditure initiatives continue to support L&T’s engineering and construction (E&C) business.
Market Outlook & Analyst Views
- Kotak Institutional Equities expects 18% YoY growth in core EPC revenues, citing benign commodity prices and competitive bidding pressures.
- Sharekhan has a buy rating on L&T, with a target price of ₹4,550, highlighting strong execution momentum.
- Goldman Sachs anticipates 17% revenue growth, driven by international order book strength.
Earnings Announcement Date
L&T is scheduled to announce its Q4FY25 results on May 8, 2025. Investors will closely watch margin performance, order inflows, and execution trends for insights into FY26 growth prospects.
