Shares of Larsen & Toubro (L&T) surged among the top gainers in Thursday’s trade as investors reacted positively to the company’s robust outlook for FY26 and its plan to divest its stake in the Hyderabad Metro project.
The L&T management has projected over 10% growth in order inflows, 15% revenue growth, and an EBITDA margin of 8.5% for FY26, signaling confidence in the company’s business momentum.
A key trigger for the rally is L&T’s in-principle agreement with the Telangana government to divest its stake in Hyderabad Metro. The company aims to complete the transaction by Q4FY26. Under the arrangement, the Telangana government’s SPV will take over the ₹13,000 crore debt associated with the project. The move is expected to significantly reduce L&T’s consolidated debt and interest burden, improving its overall balance sheet.
The company’s strong domestic order inflows and strategic focus on non-core asset divestment are seen as measures to enhance efficiency and unlock shareholder value.
L&T also reaffirmed its FY26 growth guidance, emphasizing an improvement in operational margins driven by execution of large hydrocarbon projects. The management expects second-half FY26 to be execution-heavy, following weather-related slowdowns in the first half.
With a strong order pipeline, improving profitability, and progress on asset monetization, L&T continues to strengthen its position as a leading player in India’s infrastructure and engineering sector.
