Larsen & Toubro Limited

LT.NS

Engineering & Construction · Industrials

Price

₹3787.90

-4.50 (-0.12%)

Market Cap

₹5.21T

Exchange

National Stock Exchange of India

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Jul 27, 2026 · filings through Mar 31, 2026

Share count rising — dilution

+13.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.21B (2022) → 1.38B (2026)

Larsen & Toubro (L&T) is one of India's largest engineering and construction conglomerates. It builds major infrastructure like bridges, highways, metro rail systems, airports, and power plants, and also makes heavy industrial equipment and defense systems. Its customers include governments, public utilities, and large private companies across India and the Middle East.

L&T earns money through long-term construction contracts, engineering services, and manufacturing, with additional revenue from its technology and financial services arms. The company operates primarily in India but has a significant presence in the Gulf region and select international markets. Its size, technical expertise, and decades-long relationships with government clients give it a strong competitive position in winning large, complex projects. The key growth driver is India's ongoing infrastructure spending push, though the business faces risks from project execution delays, rising input costs, and dependence on government budgets that can shift with political priorities.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+9.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-3.2% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

15.2%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$1.7T cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Larsen & Toubro Limited is growing revenue at 10% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

12.4%

Thin — 12.4% gross margin

Operating Margin

9.0%

Modest — 9.0% operating margin

ROCE

3.2%

Weak — 3.2% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+10.6%

Steady sales growth (10.6% YoY)

EPS YoY

+11.2%

Earnings growing (11.2% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

24%

Weak — only 24% of profit becomes cash

FCF Margin

0.4%

Thin free cash flow (0.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

1.12

Elevated debt (1.12)

Interest Cover

9.54x

Comfortably covers interest (9.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

31.1x

Pricey — P/E 31.1

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+9.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (31.1 → 21.2)

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Dividends

Dividend Yield

1.00%

Small dividend — 1.00% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+87.9%

Dividend growing fast (87.9% YoY)

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