L&T Shares Decline 4% Despite Firm Market Conditions
L&T top loser among Sensex stocks, down 4% in firm market; here's why
Business Standard
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Larsen & Toubro (L&T) shares fell by 4% to ₹3,900 amid concerns over near-term execution challenges, despite a 5.6% gain over the past month. The company's Q4 results showed a 3% decline in net profit, attributed to supply chain disruptions and project delays, while maintaining a strong order book of ₹7.4 trillion.
- 01L&T shares dropped 4% to ₹3,900 amid market concerns.
- 02The company's Q4 net profit declined by 3% year-on-year.
- 03L&T's order book stands at ₹7.4 trillion, reflecting a 28% year-on-year growth.
- 04Analysts cite supply chain issues and project delays as reasons for the stock's underperformance.
- 05Management targets 10-12% growth in order inflow and revenue for FY27.
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Larsen & Toubro (L&T) shares experienced a 4% decline, trading at ₹3,900 on the Bombay Stock Exchange (BSE) during Wednesday's intra-day session, making it the top loser among Sensex stocks. This drop occurred despite a broader market rise, with the BSE Sensex up by 0.56%. Analysts attribute the decline to concerns over near-term execution challenges, including a ₹5,000 crore revenue slippage due to supply chain disruptions in the Middle East and delays in water projects. In its latest quarterly results, L&T reported a 3% year-on-year decline in consolidated net profit, totaling ₹5,325.60 crore for Q4 of the fiscal year 2025-26, although revenue from operations grew by 11% to ₹82,762.16 crore. The company secured consolidated order inflows of ₹89,772 crore, with a robust order book of ₹7.4 trillion, indicating a 28% year-on-year growth. Despite the challenges, L&T's management remains optimistic, forecasting 10-12% growth in both order inflow and revenue for FY27. The company is also focusing on strategic investments and a strong pipeline of opportunities, with a projected pipeline of ₹17.8 trillion for FY27.
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The decline in L&T's stock may affect investor confidence and could influence future investment decisions in infrastructure projects.
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