L&T's orders soothe, margin irks

Larsen & Toubro Ltd's (L&T) shares fell 3% on Saturday, pretty much wiping away the gains it saw the previous day in reaction to the December quarter results (Q3FY25).

- Harsha Jethmalani

Positives of Q3 aside, some part of the stock upmove was in anticipation that capital expenditure (capex) allotment could be higher in Budget 2025. But a modest uptick in FY26 capex has upset investors. L&T is considered a proxy to the country's infrastructure developments as government orders form a huge chunk of its order book.

Nonetheless, the company is bracing for a robust March quarter (Q4) as it is well-placed in four-five large orders, amounting to ₹50,000 crore and some or all of these may get finalized during the quarter, the management said in Q3 earnings call. The order inflow ask-rate for Q4 is ₹65,000 crore, it added.