Larsen & Toubro (L&T) shares fell further after JM Financial trimmed its order inflow forecast, citing uncertainty around the $8.7-billion Kuwait tender. Despite the downgrade, the brokerage maintains that L&T’s FY26 order inflow growth guidance remains intact.
JM Financial’s Take on L&T
- The brokerage highlighted uncertainty in the Kuwait tender, which could impact near-term large project inflows.
- However, April-December FY26 order inflows stood at ₹3.2 trillion, demonstrating robust execution and deal pipeline.
- Strong prospects for Q4 FY26 give confidence that L&T can still achieve its 10% YoY order inflow growth guidance for the fiscal year.
Why Shares Are Under Pressure
Investors reacted to the news of uncertain large-ticket international orders, which could affect short-term sentiment despite a healthy domestic order book. Market participants are wary of potential delays or renegotiations in major international tenders.
Analyst Outlook
- L&T’s long-term fundamentals remain strong, supported by diversified engineering and construction projects globally and domestically.
- Short-term volatility is expected due to geopolitical tender risks, but execution capabilities and domestic order inflows mitigate downside risks.
Key Highlights
- L&T shares extend fall on Kuwait tender uncertainty
- JM Financial trims order inflow forecast for near-term
- FY26 growth guidance of 10% YoY still expected
- April-December order inflows ₹3.2 trillion
⚠️ Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock prices may fluctuate due to tender and geopolitical risks.
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