The shares of Larsen & Toubro (L&T) jumped around 4 percent on January 29 after the company released its results for the October-December quarter of the ongoing financial year 2026. Brokerages have increased their target prices for the stock, citing several reasons.

The shares of the company rose to Rs 3,932.6 in the early trading hours of Thursday, extending gains for the third consecutive session.

L&T Q3 Results:

Larsen & Toubro (L&T) reported a consolidated net profit of Rs 3,215 crore for Q3 FY26, marking a 4 percent YoY fall from Rs 3,358.84 crore net profit reported in Q3 FY25. This however included a one-time exceptional cost of Rs 1,191 crore due to the implementation of new labour codes last year.

A Source's poll of brokerages had estimated the firm’s net profit to rise to Rs 4,524 crore.

The firm’s revenue from operations meanwhile rose 10.5 percent YoY to Rs 71,449.70 crore, missing MC poll estimate of Rs 75,011 crore.

The Group’s consolidated order book as on December 31, 2025, stood at Rs 7,33,161 crore, reflecting a 30 percent YoY growth. International orders constituted 49 percent of the overall order book.

Motilal Oswal on L&T:

Motilal Oswal maintained a ‘Buy’ rating on the stock, while raising its target price for the stock to Rs 4,600 apiece from Rs 4,500 earlier. The latest target price implies an upside potential of more than 21 percent from the stock’s previous closing price.

The domestic brokerage said that the firm’s consolidated Q3 earnings were slightly below its estimates due to weaker-than-expected execution for core E&C. Revenue growth for core E&C, which has remained weak for the last two quarters, is expected to ramp up from the fourth quarter.

On the positive side, Motilal said that order inflows remained strong, driven by large order wins in domestic and international markets, providing healthy visibility for revenue. An improved prospect pipeline, further reduction in NWC and healthy RoE give comfort in an environment where domestic execution and margin performance in select segments were weak, it added.

JM Financial on L&T:

JM Financial maintained a ‘Buy’ rating on the stock, while raising its target price for the stock to Rs 4,655 apiece from Rs 4,500 earlier. The latest target price implies an upside potential of nearly 23 percent from the stock’s previous closing price.

The domestic brokerage noted that the company yet again reported a strong delivery on order inflows, significantly exceeding estimates. “We estimate 24% FY26E order inflows (vs 10% guidance) factoring in Q3 strength and a robust international outlook. We expect the order inflow strength to sustain in FY27 (est 11% growth). We raise our FY28E core EBITDA by 3?ctoring in stronger FY26 inflows,” it said.

Nomura on L&T:

Nomura maintained its ‘Buy’ call on the stock, with a target price of Rs 4,510 apiece. This implies an upside potential of nearly 19 percent from the stock’s previous closing price.

The international brokerage noted that the company delivered robust order inflows, but execution missed estimates. It cut FY27–28 EBITDA estimates by 1-3 percent to factor in weaker energy segment margin.

Jefferies on L&T:

Jefferies maintained its ‘Buy’ call on the stock, with a target price of Rs 4,715 apiece. This implies an upside potential of more than 24 percent from the stock’s previous closing price.

The international brokerage said that the firm’s Q3 EBITDA was 4 percent above estimates, and margin also improved. Potential discussions on semiconductor investments and Hyderabad Metro moving off books are positive triggers ahead, it added.