Larsen & Toubro (L&T) shares surged 4.3% to ₹3,646 in Wednesday's morning session, ranking among the top gainers on the Nifty 50. This sharp uptick comes on the back of robust Q1FY26 financial results, further cementing investor confidence in the engineering and infrastructure giant.

As of 10:00 am, other Nifty gainers included TATA Consumer Products (1.16%), Asian Paints (1.04%), NTPC (0.97%), and Bharti Airtel (0.9%), but L&T led the pack by a wide margin.

Quarterly and Annual Financial Performance – A Strong Uptrend
In the June 2025 quarter, L&T reported a consolidated revenue of ₹63,678.92 crore, up from ₹55,119.82 crore in June 2024—an 11.93% growth. Net profit jumped 25.74% YoY, from ₹3,440.11 crore to ₹4,325.57 crore, while earnings per share (EPS) rose from ₹20.26 to ₹26.30.

Annual performance figures also painted a strong picture. L&T’s revenue grew 15.66% YoY, from ₹2,21,112 crore in FY24 to ₹2,55,734 crore in FY25. Net profit climbed to ₹17,687.39 crore from ₹15,569.72 crore the previous year. The EPS surged to ₹109.36 in FY25 from ₹93.96 in FY24, highlighting improved operational efficiency.

Operational Metrics and Key Ratios Support Bullish View
EBIT rose 11.84% YoY to ₹26,913 crore in FY25

Interest costs fell slightly from ₹3,545 crore to ₹3,334 crore

Tax outgo increased to ₹5,891 crore, up 19% YoY

Return on Equity (ROE) improved to 15.39%

Book Value per Share (BVPS) stood at ₹710.12

Debt-to-equity ratio remained stable at 1.33, reflecting prudent leverage

From a valuation standpoint, the stock trades at a P/E ratio of 31.93 and a P/B ratio of 4.92, suggesting moderate overvaluation but justified by strong growth prospects. The company also declared a ₹34 dividend per share, offering income alongside capital appreciation.

Cash Flow and Balance Sheet
Operating cash flows for FY25 stood at ₹9,160 crore, while investing activities resulted in an outflow of ₹15,517 crore, reflecting continued capital expansion. Financing inflows totaled ₹6,556 crore, leading to a positive net cash flow of ₹228 crore for the fiscal year. Total assets increased to ₹3,79,524 crore, matched by a rise in liabilities.

Corporate Developments and Outlook
L&T recently held its Q1/FY26 analyst meet on July 29, 2025, signaling management transparency and continued focus on investor relations. The company also has a history of rewarding shareholders, including a past bonus issue in May 2017 (1:2).

Larsen & Toubro’s latest quarterly numbers, consistent multi-year financial growth, and sector leadership position the company well for future expansion, especially amid increasing government capex and infrastructure demand. The stock’s breakout reflects strong market conviction in its fundamentals.