Larsen & Toubro (L&T) shares experienced a surge, reaching a 10-month high, buoyed by an upbeat outlook from Jefferies and strong Q1 FY26 results. On July 30, 2025, the stock climbed nearly 4% as investors responded positively to the company's better-than-expected earnings for the June quarter.

Factors Driving the Surge

• Jefferies' Bullish Stance: Jefferies has been consistently optimistic about L&T, naming it a top pick in the infrastructure sector. The brokerage firm cited a robust order book and improved visibility in the hydrocarbon segment as key reasons for their positive outlook. Jefferies raised its target price to ₹4,230 from ₹3,965, also noting L&T's revenue guidance of 15% year-on-year growth as potentially conservative. They believe margin expansion is likely as the company shifts toward higher-margin businesses. In a recent report, Jefferies highlighted L&T's ₹19 trillion opportunity pipeline, offering "complete comfort" on its growth targets.
• Strong Q1 FY26 Performance: L&T reported a consolidated net profit of ₹3,617 crore in Q1 FY26, a 30% year-on-year increase compared to ₹2,786 crore in the same quarter last year. Revenue from operations also increased by 15.5% to ₹63,679 crore. The company's consolidated order inflow surged to ₹94,500 crore in Q1 FY26, exceeding street estimates.
• Order Inflow and Guidance: L&T management reaffirmed its guidance of 10% growth in order inflow for the year, which many brokerages believe could be exceeded due to strong traction in West Asia and domestic execution. The order prospect pipeline grew 65% YoY to ₹15 lakh crore for the next nine months of FY26.
• "Ultra-Mega" Order Win: On October 9, 2025, L&T shares rose after the company secured an "ultra-mega" order for its hydrocarbon onshore business. L&T classifies any order above ₹15,000 crore as an ultra-mega order. The order involves setting up a Natural Gas Liquids (NGL) plant and allied facilities in the Middle East, in consortium with Greece-based Consolidated Contractors Group S.A.L. (CCC).
• Brokerage Upgrades: Besides Jefferies, other brokerages have also expressed optimism about L&T. Morgan Stanley retained its "overweight" stance with a target price of ₹4,090, while Motilal Oswal maintained a "buy" rating with a price target of ₹4,200. CLSA also lifted its target to ₹4,176, noting that Q1 results beat expectations. Motilal Oswal has retained its 'Buy' rating on L&T, with a target price of Rs 4,200, and marginally increased core engineering & construction revenue estimates.

L&T's Stock Performance

L&T's share price reached ₹3,796.40, its highest level since December 18, 2024. The stock has shown steady growth over the past few months, adding 4% so far this year. Over a one-year period, L&T shares have gained 6.4%.

Other Positive Developments

L&T's Heavy Civil Infrastructure (HCI) business secured an order worth ₹1,000 - ₹2,500 crore from NPCIL for civil works at Units 5 and 6 of the Kudankulam Nuclear Power Project in Tamil Nadu. L&T also formed a partnership with Bharat Electronics (BEL) to support the Indian Air Force's Advanced Medium Combat Aircraft (AMCA) programme.