L&T Shares Fall Over 3 Percent as Decline in Profit, Concerns on Margins

Shares of Larsen and Toubro (L&T) experienced a significant decline of over 3 percent during early trading on Wednesday after the firm announced its financial results for the fourth quarter of FY26. Reports indicate that the company’s profits are decreasing, raising worries about their profit margins.

The decline was driven by brokerages flagging weak margins which are narrowing to 10.4% and a softer FY27 outlook, despite a strong order book. The stock fell to a low of Rs. 3,900 during the day and was seen trading at Rs. 3,930. 00 at 11:09 am on the NSE on Wednesday.

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For the fourth quarter, the company shared a consolidated revenue increase of 11 percent compared to last year, reaching Rs. 82,762 crore, which was boosted by strong progress across different sectors. However, net profit fell by 3 percent year-on-year to Rs. 5,326 crore, signaling challenges with profit margins and a varied performance throughout the quarter, according to the reports.

L&T introduced its new strategy plan called Lakshya 2031, which elicited mixed reactions from various brokerages. Reactions from brokers varied. Worries arose regarding how well trades were being done, profit margins, the pace of new orders coming in and the profits from fresh investments related to the Lakshya 2031 plan, as the reports highlighted.