Larsen & Toubro — Annual Report FY2026
Quality Scores
AI Summary
Larsen & Toubro Ltd (LT) demonstrates robust long-term growth in revenue and net profit, with sales compounding at 16% over the last five years and net profit growing at 17% over three years. The company maintains a healthy dividend payout, averaging 33.1%. However, profitability margins, specifically OPM %, have shown a declining trend over the last decade, dropping from 17% in Mar 2015 to 12% in Mar 2026. The company's capital structure shows a significant reliance on borrowings, which, while decreasing in recent years, remains substantial. Cash flow from operations has been volatile but…
Key Changes
Larsen & Toubro demonstrates consistency in revenue generation and overall profit growth over the past decade. Sales have shown an upward trend without significant annual reversals, growing from ₹91,929 Cr in Mar 2015 to ₹285,874 Cr (projected) in Mar 2026. Net profit has also largely trended upwards with a 10-year CAGR of 15%, though some individual year fluctuations are evident. However, operating profit margins have shown a consistent decline from 17% to 12% over the same period, indicating a steady erosion of operational efficiency. Return on Capital Employed (ROCE) and Return on Equity (ROE) have generally remained within a stable range, primarily between 10% and 16%, supporting the view of steady capital utilization. The dividend payout ratio has consistently hovered around 30-40%,…
Management Commentary
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Financial Highlights
Larsen & Toubro has exhibited consistent revenue growth over the past decade, with sales increasing from ₹91,929 Cr in Mar 2015 to a projected ₹285,874 Cr in Mar 2026, marking a 10-year compounded annual growth rate of 11%. Net profit has also grown significantly, from ₹4,966 Cr in Mar 2015 to an estimated ₹18,954 Cr in Mar 2026, registering a 10-year CAGR of 15%. However, the operating profit margin (OPM %) has shown a concerning downtrend, decreasing from 17% in Mar 2015 to 12% in Mar 2026, indicating potential pressure on operational efficiency or pricing power. Earnings Per Share (EPS) has followed a similar growth trajectory, rising from ₹34.17 in Mar 2015 to a projected ₹116.92 in Mar 2026. Return on Equity (ROE) and Return on Capital Employed (ROCE) have demonstrated some…
Major Opportunities
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Major Risks
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