WatchTalking point
Cash conversion trending down
Cash conversion (CFO ÷ profit) has averaged 1.29× over the last 3 profit-making years versus 1.80× before that.
Importance 64 / 95 · cash quality
Larsen & Toubro Limited · Research view
Larsen & Toubro Limited
NSE: LTBSE: 500510ISIN INE018A01030Face value ₹2consolidated
₹3,686
−1.75% · 2026-10-01 · 52-wk ₹3,342–₹4,418
Financials to FY2026 · 8 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
Context
Lower P/E than peers
Trades at 25.84× earnings — 28% below the civil construction median of 35.84×.
Importance 48 / 95 · valuation
Strength
Consistently free-cash-flow positive
Free cash flow has been positive in 6 of the last 6 years.
Importance 44 / 95 · cash quality
Section 03 · The company
Who is this company?
Classified by the exchange under Industrials › Construction › Construction › Civil Construction.
- Market cap
- ₹5.07 L cr
- FY2026 revenue
- ₹2,85,874 cr
- FY2026 net profit
- ₹18,954 cr
- Net worth
- ₹1,28,530 cr
- Total debt
- ₹1,21,683 cr
- EPS (basic)
- ₹116.93
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 2 civil construction.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Context
Revenue has compounded at 10.6% a year over 7 years (₹1,41,007 → ₹2,85,874) — steady rather than rapid.
Rule REVENUE_COMPOUNDED_MODERATE
- Revenue growth per year
- +10.6%over 7 years
- Revenue growth
- +11.8%vs last year
- Net profit growth
- +24.1%vs last year
- Change in net profit since FY19
- +86%
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q1 FY27 net profit was ₹4,988 cr, up 15.5% from ₹4,318 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Strength
Q1 FY27 EBIT was ₹7,461 cr, up 12.3% from ₹6,641 cr a year earlier.
Rule QTR_OPERATING_PERFORMANCE_CHANGE_YOY
Strength
Q1 FY27 interest (finance cost) was ₹539 cr, down 31.1% from ₹782 cr a year earlier.
Rule QTR_INTEREST_EXPENSE_CHANGE_YOY
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 61,555 | — | 4,099 | — | 6.7% |
| Q3 FY25 | 64,668 | +17.3% | 3,974 | +10.6% | 6.1% |
| Q4 FY25 | 74,392 | +10.9% | — | — | — |
| Q1 FY26 | 63,679 | +15.5% | 4,318 | +25.4% | 6.8% |
| Q2 FY26 | 67,984 | +10.4% | 4,678 | +14.1% | 6.9% |
| Q3 FY26 | 71,450 | +10.5% | 3,825 | −3.8% | 5.4% |
| Q4 FY26 | 82,762 | +11.3% | 6,133 | — | 7.4% |
| Q1 FY27 | 67,942 | +6.7% | 4,988 | +15.5% | 7.3% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹2,90,137 crTTM
- EBITDA
- ₹35,731 crTTM
- EBIT
- ₹31,367 crTTM
- PBT
- ₹27,039 crTTM
- Net profit
- ₹19,624 crTTM
C. Corporate actions
22 May 2026DividendFinal Dividend - Rs. - 38.0000 — ₹38.00/share
3 Jun 2025DividendFinal Dividend - Rs. - 34.0000 — ₹34.00/share
20 Jun 2024DividendFinal Dividend - Rs. - 28.0000 — ₹28.00/share
12 Sept 2023BuybackBuy Back of Shares
2 Aug 2023DividendSpecial Dividend - Rs. - 6.0000 — ₹6.00/share
2 Aug 2023DividendDividend - Rs. - 24.0000 — ₹24.00/share
21 Jul 2022DividendFinal Dividend - Rs. - 22.0000 — ₹22.00/share
28 Jul 2021DividendFinal Dividend - Rs. - 18.0000 — ₹18.00/share
4 Nov 2020DividendSpecial Dividend - Rs. - 18.0000 — ₹18.00/share
5 Aug 2020DividendFinal Dividend - Rs. - 8.0000 — ₹8.00/share
24 Mar 2020DividendInterim Dividend - Rs. - 10.0000 — ₹10.00/share
24 Jul 2019DividendDividend - Rs. - 18.0000 — ₹18.00/share
12 Oct 2018BuybackBuy Back of Shares
14 Aug 2018DividendDividend - Rs. - 16.0000 — ₹16.00/share
11 Aug 2017DividendDividend - Rs. - 14.0000 — ₹14.00/share
13 Jul 2017Bonus issueBonus issue 1:2 — 2:3
18 Aug 2016DividendDividend - Rs. - 18.2500 — ₹18.25/share
1 Sept 2015DividendDividend - Rs. - 16.2500 — ₹16.25/share
13 Aug 2014DividendDividend - Rs. - 14.2500 — ₹14.25/share
13 Aug 2013DividendDividend - Rs. - 12.3300 — ₹12.33/share
11 Jul 2013Bonus issueBonus issue 1:2 — 2:3
14 Aug 2012DividendDividend - Rs. - 16.5000 — ₹16.50/share
17 Aug 2011DividendDividend - Rs. - 14.5000 — ₹14.50/share
17 Aug 2010DividendDividend - Rs. - 12.5000 — ₹12.50/share
18 Aug 2009DividendDividend - Rs. - 10.5000 — ₹10.50/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Margin and return trends are shown above.
- EBITDA margin now
- 12.2%
- 8-year range
- 12.2–14.0%
- ROE FY2026
- 14.7%
- ROCE FY2026
- 12.2%
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Watch
Cash conversion (CFO ÷ profit) has averaged 1.29× over the last 3 profit-making years versus 1.80× before that.
Rule CASH_CONVERSION_DETERIORATING
Operating cash flowNet profit
- Total debt
- ₹1,21,683 cr
- Operating cash flow ÷ net profit
- 0.88×FY2026
- Free cash flow
- ₹12,272 cr
- Current ratio
- 1.25×
Operating cash flow has matched or exceeded reported profit in 4 of the last 5 profit-making years (latest 0.88×).
Free cash flow has been positive in 6 of the last 6 years.
Section 08 · Relative position
How does it compare with peers?
Ranked against 2 civil construction (FY2026, consolidated).
Not enough peers in this set report the underlying metrics yet for a ranking.
Context
Trades at 25.84× earnings — 28% below the civil construction median of 35.84×.
Rule PE_BELOW_PEERS
- P / E
- 25.8×TTM to Jun 26
- P / B
- 3.9×latest book
- P / S
- 1.7×TTM sales
- Earnings yield
- 3.9%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 26.7× · P/S 1.7× · ROE 14.7%.
Section 09 · The stock
How has the stock performed?
Long-term price performance is shown above.
- 1-year return
- +0.4%
- 3-year return
- +21.9%
- 5-year return
- +117.2%
- From 52-wk high
- −16.6%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹3,954
- vs 200-day avg
- Below₹3,970
- RSI (14)
- 31.0neutral
- MACD histogram
- -17.7
- From 52-wk high
- −16.6%
- From 52-wk low
- +10.3%
- 30-day volatility
- 17.5%ann.
- 6-month return
- +3.4%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchCash conversion trending downCash conversion (CFO ÷ profit) has averaged 1.29× over the last 3 profit-making years versus 1.80× before that.CASH_CONVERSION_DETERIORATING · conviction 64
- Cash-flow-statement facts are unavailable for FY2019, FY2020 — those filings predate SEBI's Cash Flow Statement disclosure requirement. All other loaded years carry full P&L, balance sheet and cash-flow data.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,41,007 | 1,45,452 | 1,35,979 | 1,56,521 | 1,83,341 | 2,21,113 | 2,55,734 | 2,85,874 |
| Total income | 1,42,859 | 1,47,813 | 1,39,408 | 1,58,788 | 1,86,270 | 2,25,271 | 2,59,859 | 2,91,635 |
| EBITDA | 18,176 | 18,690 | 19,053 | 20,484 | 23,682 | 27,652 | — | 34,912 |
| Profit before tax | 14,581 | 13,431 | 8,542 | 14,530 | 17,109 | 20,517 | 23,579 | 25,976 |
| Net profit | 10,217 | 10,894 | 12,921 | 10,419 | 12,531 | 15,547 | — | 18,954 |
| EPS (₹) | 63.5 | 68.0 | 82.5 | 61.7 | 74.5 | 94.0 | 109.4 | 116.9 |
| Net worth | 69,201 | 76,244 | 87,920 | 95,374 | 1,03,567 | 1,02,550 | — | 1,28,530 |
| Total debt | 1,25,555 | 1,41,007 | 1,32,605 | 1,23,468 | 1,18,513 | 1,14,040 | — | 1,21,683 |
| Operating cash flow | — | — | 22,844 | 19,164 | 22,777 | 18,266 | 9,161 | 16,741 |
| Free cash flow | — | — | 21,036 | 16,124 | 18,984 | 14,056 | 5,620 | 12,272 |
| Ratio | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Growth | ||||||||
| Revenue growth YoY | — | 3.2 | -6.5 | 15.1 | 17.1 | 20.6 | 15.7 | 11.8 |
| Profit growth YoY | — | 6.6 | 18.6 | -19.4 | 20.3 | 24.1 | — | — |
| Profitability | ||||||||
| EBITDA margin % | 12.9 | 12.8 | 14.0 | 13.1 | 12.9 | 12.5 | — | 12.2 |
| Net margin % | 7.2 | 7.4 | 9.3 | 6.6 | 6.7 | 6.9 | — | 6.5 |
| Return on equity % | 14.8 | 15.0 | 15.7 | 11.4 | 12.6 | 15.1 | — | 14.7 |
| Return on capital % | 8.3 | 7.9 | 7.4 | 8.0 | 9.2 | 10.9 | — | 12.2 |
| Leverage & cash | ||||||||
| Debt to equity | 1.81 | 1.85 | 1.51 | 1.29 | 1.14 | 1.11 | — | 0.95 |
| Cash flow ÷ profit | — | — | 1.77 | 1.84 | 1.82 | 1.17 | — | 0.88 |
| Current ratio | 1.24 | 1.25 | 1.42 | 1.30 | 1.36 | 1.23 | 1.21 | 1.25 |