L&T Q3 Results 2025 Preview: Is it wise to purchase L&T stock before the company's Q3 results? What to anticipate is as follows:

Preview of L&T Q3 Results 2025: Over the last year, the price of L&T's stock has stayed low. Even if L&T's stock has down 3% in a single month, it has dropped 8% in six months and more than 4% in a year.

The engineering, procurement, and construction (EPC) company Larsen and Toubro (L&T) is scheduled to release its third-quarter FY25 earnings today. The price of L&T shares increased before today's Q3 report. On the BSE, the stock increased by as high as 1.98% to ₹3,517.50 a share.

Over the last year, the price of L&T's stock has stayed low. Even if L&T's stock has down 3% in a single month, it has dropped 8% in six months and more than 4% in a year. But the price of L&T shares has delivered 65% returns in two years.

It is anticipated that the company's net profit will increase by 24% year over year in the quarter that ended in December, while revenue will expand by 18% year over year. According to a Livemint survey of five brokerages, EBITDA is anticipated to increase 16% year over year, while margins are probably going to stay the same.

What to anticipate from today's L&T Q3 earnings is as follows:

Oswal Motilal
In Q3FY25, Motilal Oswal anticipates that L&T will generate a net profit of ₹3,800 crore, up 28.7% year over year. Estimated revenue is ₹66,400 crore, representing a 20.4% YoY increase.

"We anticipate 20% YoY increase in consolidated revenue, with Core E&C revenue growing at a rate of 24% YoY. With a 40 bps YoY and 50 bps QoQ increase, we anticipate an 8.1% Core E&C EBITDA margin. The working capital cycle, margin performance, and domestic order pipeline are important metrics to track. Notably, the business secured defense and thermal orders in 3QFY25, easing worries about domestic ordering, according to Motilal Oswal.

It anticipates that LT will continue to gain from both foreign and possibly domestic spending while keeping tight control over its operating capital.

With a target price of ₹4,300 per share, Motilal Oswal has rated L&T shares as a "buy."

Institutional Equities in Nuvama
According to the brokerage firm, L&T's net profit in Q3FY25 is expected to increase by 21% to ₹3,570.7 crore from ₹2,947.4 crore in the same time last year. Revenue is predicted to increase 16% year over year to ₹64,151.3 crore from ₹55,127.8 crore. EBITDA is anticipated to increase by 15% year over year to ₹6,607.6 crore.

While ME hydrocarbon ordering and government capital expenditures and initiatives are showing significant pace, private capital expenditures have not yet reached their peak, according to Nuvama Equities. Making subsidiaries self-sufficient, having a significant presence in green energy (hydrogen, battery storage, etc.), and non-core exits are the main objectives of the FY26 strategic plan.

Margin increases may occur, albeit more slowly, as a result of strong order inflow growth, legacy project completion, Hyderbad metro refinancing, etc. With 8.2% core OPMs (bottomed out), the company maintained its FY25 guidance of 10%/15% OI/sales growth. It stated that a significant OI in H2 is anticipated in the Middle East and India.

Institutional Equities of Kotak
Kotak Institutional Equities anticipates a 24% YoY increase in core EPC revenues and a 20% YoY increase in consolidated revenues as it more than makes up for its poor home execution with strong international execution. As it aligns with the low-teens rise in order backlog as of end-Q2FY25, it anticipates that execution growth will slow to 15% in Q4. The projected EBITDA margin for core E&C business is 7.9%.

Since competitive pressure caused bidding to occur at lower-than-prevalent steel prices a year ago, we do not factor in any significant benefits of correcting steel pricing. According to Kotak Equities, the execution of megahydrocarbon projects that were awarded last year might not be segmentally margin-accretive.

With a market capitalization of about ₹4,82,987 crore, L&T shares were up 1.83% at ₹3,512.30 a share on the BSE at 10:25 AM.