L&T Q3 Results 2025 Preview: Should you buy L&T shares ahead of Q3 earnings? Here’s what to expect

Larsen and Toubro (L&T), the engineering, procurement, and construction (EPC) major, is set to announce its earnings for the third quarter of FY25 today, January 30. L&T share price traded higher ahead of the Q3 results today. The stock gained as much as 1.98% to ₹3,517.50 apiece on the BSE.

L&T stock price performance has remained weak in the past one year. While L&T shares are down 3% in one month, they have fallen 8% in six months and over 4% in one year. However, L&T share price has delivered 65% returns in two years.

L&T is expected to report strong earnings growth led by a rising order book and large project execution.

The company’s net profit in the quarter ended December is expected to rise 24% year-on-year, while revenue is estimated to see a growth of 18% YoY. At the operational level, EBITDA is expected to rise 16% YoY and margins are likely to remain stable, according to Livemint poll of five brokerages.

Here’s what to expect from L&T Q3 results today:

Motilal Oswal

Motilal Oswal expects L&T to report net profit at ₹3,800 crore in Q3FY25, up 28.7% YoY. Revenue is estimated at ₹66,400 crore, recording a growth of 20.4% YoY.

“We expect consolidated revenue growth of 20% YoY, led by 24% YoY revenue growth for Core E&C. We expect Core E&C EBITDA margin of 8.1%, up 40 bps YoY and 50 bps QoQ. Key monitorables include domestic order pipeline, margin performance, as well as working capital cycle. Notably, the company has bagged thermal and defense orders in 3QFY25, allaying concerns on domestic ordering,” Motilal Oswal said.

It expects LT to continue benefiting from international spending and a potential revival in domestic spending, while maintaining strong control over its working capital.

Motilal Oswal has a ‘Buy’ rating on L&T shares with a target price of ₹4,300 apiece.

Nuvama Institutional Equities

The brokerage firm expects L&T’s net profit in Q3FY25 to rise 21% to ₹3,570.7 crore from ₹2,947.4 crore in the year-ago period. Revenue is estimated to grow 16% to ₹64,151.3 crore from ₹55,127.8 crore, YoY. EBITDA is expected to rise 15% YoY to ₹6,607.6 crore.

According to Nuvama Equities, while government capex/initiatives and ME hydrocarbon ordering shows strong momentum, private capex is yet to show its best. FY26 strategic plan is to focus on making subsidiaries self-sustainable, strong presence into green energy (hydrogen, battery storage etc.) and non-core exits.

With robust order inflow growth, execution completion of legacy projects, refinancing of Hyderbad metro etc., margins may see ramping up but at a slower pace. The company retained FY25 guidance of 10%/15% OI/sales growth with 8.2% core OPMs (bottomed out). Large OI is likely in H2 across the Middle East and India, it said.

Kotak Institutional Equities

Kotak Institutional Equities expects 24% YoY growth in core EPC revenues and 20% YoY growth consolidated revenues as it bakes in the weakness in domestic execution more than getting compensated by strength in overseas execution. It expects execution growth to moderate in Q4 to 15%, as it gets aligned with the low-teens growth in order backlog, as of end-Q2FY25. Core E&C business EBITDA margin is expected at 7.9%, up 20 bps YoY on a low base of margin.

We do not build in any meaningful benefit of correcting steel prices, given competitive pressure, leading to bidding happening at lower-than-prevalent steel prices a year ago. The execution of megahydrocarbon projects won last year may also not be margin-accretive at a segmental level, Kotak Equities said.

At 10:25 AM, L&T shares were trading 1.83% higher at ₹3,512.30 apiece on the BSE, commanding a market capitalisation of more than ₹4,82,987 crore.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.