Larsen & Toubro Limited (NSE:LT) Just Released Its Annual Earnings: Here's What Analysts Think

It's been a good week for Larsen & Toubro Limited (NSE:LT) shareholders, because the company has just released its latest full-year results, and the shares gained 3.4% to ₹3,444. It was a credible result overall, with revenues of ₹2.6t and statutory earnings per share of ₹109 both in line with analyst estimates, showing that Larsen & Toubro is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 2 warning signs investors should be aware of before investing in Larsen & Toubro. Read for free now.

Following the latest results, Larsen & Toubro's 31 analysts are now forecasting revenues of ₹2.95t in 2026. This would be a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 26% to ₹134. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹2.99t and earnings per share (EPS) of ₹137 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Larsen & Toubro

The consensus price target held steady at ₹3,984, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Larsen & Toubro at ₹4,548 per share, while the most bearish prices it at ₹2,898. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Larsen & Toubro'shistorical trends, as the 14% annualised revenue growth to the end of 2026 is roughly in line with the 14% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 12% per year. So although Larsen & Toubro is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹3,984, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Larsen & Toubro going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Larsen & Toubro (of which 1 is significant!) you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.