Is L&T FY26 guidance on lower side?

Spoiling the show

- Manish Joshi

The Street cheered Larsen & Toubro Ltd's (L&T) FY25 with the stock closing 3.6% up on Friday to ₹3,444 on the National Stock Exchange.

The rise stands out as equity markets were reeling under pressure amid India-Pakistan tension. The stock's positive reaction can be attributed to L&T exceeding core engineering and construction (E&C) FY25 order inflow and revenue growth guidance of 10% and 15%.

E&C order inflow grew 20% in FY25 and revenue 19%.

The moot question now is: Can there be a positive surprise in FY26, too?

That's likely for order inflows, as management seems to be in an 'under-promise' and 'over-deliver' mode, based on the inference drawn from L&T's FY26 guidance and prospective order pipeline.

The firm believes that there could be a prospective pipeline of ₹19 trillion for FY26, a big jump from ₹12 trillion at the start of FY25.