As of mid-February 2026, analysts maintain a bullish, albeit cautious, outlook on Larsen & Toubro (L&T) shares, following strong Q1 FY26 results, including a 30% YoY rise in Profit After Tax (PAT) and a consolidated order book exceeding ₹6.12 lakh crore

Share Price Targets & Analyst Consensus (Feb 2026)

• Average 1-Year Target: Analysts peg the average 1-year target price at approximately ₹4,600 - ₹4,715 INR.
• High/Low Targets: Projections range from a high of ₹5,281 INR to a low of ₹3,500 - ₹3,535 INR.
• Consensus Rating: The consensus is generally a "Buy" or "Hold," with some analysts citing high valuations (P/E over 90x) as a reason to be cautious.

• Key Growth Drivers & Analysis

• Strong Order Book: L&T's order book grew to over ₹6.12 lakh crore by June 2025, driven by strong domestic and international inflows in infrastructure, hydrocarbon, and defence.
• International Strength: International revenue constitutes 52% of total revenue as of June 2025, providing a buffer against domestic sector volatility.
• High Valuation: The stock trades at a high price-to-earnings (P/E) ratio (91.1x in Jan 2026), significantly above its 5-year average of ~35x, which indicates high expectations and limited room for error.
• Long-Term Outlook: Analysts view L&T as a long-term compounder, well-positioned for India's capital expenditure cycle, with growth potential tied to renewable energy and smart city projects.

• Potential Risks

• Margin Pressure: Some analysts have highlighted concerns regarding potential margin pressures and rising costs.
• Execution Risk: With high valuation comes the requirement for flawless execution of large, complex projects.
• Working Capital: The company's working capital intensity requires careful monitoring.