L&T share price jumps over 4% after Q4 results 2025; Should you buy or sell?

L&T share price jumped over 4% in early trade on Friday after the company reported its Q4 results. The rally in L&T share price comes despite broader weakness in the Indian stock market due to the ongoing military conflict between India and Pakistan. L&T shares gained as much as 4.72% to ₹3,477.55 apiece on the BSE.

The engineering and construction major Larsen & Toubro (L&T) reported a consolidated net profit of ₹5,497 crore in the fourth quarter of FY25, registering a growth of 25% from ₹4,396 crore in the year-ago quarter.

The company’s revenue from operations in Q4FY25 increased 11% to ₹74,392 crore from ₹67,079 crore, year-on-year (YoY).

EBITDA during the March quarter rose 13% to ₹8,203 crore from ₹7,234 crore in the year ago period, while EBITDA margin improved by 20 basis points (bps) to 11% from 10.8%, YoY.

L&T won orders of ₹356,631 crore at the group level during the financial year ended March 31, 2025, registering a YoY growth of 18%. International orders stood at ₹207,478 crore during the year and comprised 58% of the total order inflow.

The order inflow in Q4FY25 stood at ₹89,613 crore, up 24% YoY. International orders at ₹62,739 crore during the March 2025 quarter constituted 70% of the total.

L&T's board also recommended a dividend of ₹34 per equity share for the financial year ended March 31, 2025. L&T dividend record date has been fixed as on June 3, 2025.

Should you buy L&T shares?

According to Ashwani Sharma, Senior Research Analyst at Emkay Global Financial Services Ltd., L&T’s resilient Q4 results reflect in its well-diversified range of engineering and manufacturing capabilities as well as exposure to multiple geographies and end-customers.

However, slowdown in execution and delay in order inflow conversion due to geopolitical tensions remain key near-term concerns.

“We lower our earnings by 7-8% for FY26/27E, by building in lower EBITDA margin owing to lower near-term profitability in the hydrocarbon business and increased fixed-price order backlog, from 42% to 46%. L&T is trading at core P&M multiple of 25x/20x FY26E/27E EPS, and offers an attractive risk-reward, in our view, given strong EPS CAGR (+23%) over FY25-27E, strong return profile with RoE moving toward 19% in FY27E, and robust cash flows and balance sheet,” Sharma.

L&T’s current multiple is at a discount to the historical average (23x), and is attractive versus broader industrial/infra space, while offering strong earnings growth and higher RoE, he added.

The brokerage firm maintained a ‘Buy’ rating on L&T shares, and cut the target price by 12% to ₹4,000 apiece for March 2026.

AT 9:35 AM, L&T share price was trading 3.23% higher at ₹3,428.00 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.