Larsen & Toubro Limited (NSE:LT) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

Larsen & Toubro Limited (NSE:LT) shareholders are probably feeling a little disappointed, since its shares fell 6.5% to ₹3,271 in the week after its latest yearly results. Larsen & Toubro beat revenue expectations by 3.2%, at ₹2.3t. Statutory earnings per share (EPS) came in at ₹93.88, some 2.3% short of analyst estimates. 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.

Check out our latest analysis for Larsen & Toubro

Following the latest results, Larsen & Toubro's 30 analysts are now forecasting revenues of ₹2.53t in 2025. This would be a meaningful 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 24% to ₹117. In the lead-up to this report, the analysts had been modelling revenues of ₹2.51t and earnings per share (EPS) of ₹123 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at ₹3,863, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Larsen & Toubro at ₹4,396 per share, while the most bearish prices it at ₹2,781. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Larsen & Toubro's past performance and to peers in the same industry. It's clear from the latest estimates that Larsen & Toubro's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.5% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Larsen & Toubro is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Larsen & Toubro. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Larsen & Toubro. Long-term earnings power is much more important than next year's profits. We have forecasts for Larsen & Toubro going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Larsen & Toubro (1 is concerning) you should be aware of.

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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.