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 ₹2standalone
₹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
- ₹1,53,680 cr
- FY2026 net profit
- ₹6,287 cr
- Net worth
- ₹74,533 cr
- Total debt
- ₹11,381 cr
- EPS (basic)
- ₹45.71
- 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
- +8.5%over 7 years
- Revenue growth
- +7.8%vs last year
- Net profit growth
- +18.5%vs last year
- Change in net profit since FY19
- −6%
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
- 13.0%
- 8-year range
- 11.7–14.6%
- ROE FY2026
- 8.4%
- ROCE FY2026
- 20.9%
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
- ₹11,381 cr
- Operating cash flow ÷ net profit
- 3.49×FY2026
- Free cash flow
- ₹20,014 cr
- Current ratio
- 1.29×
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 | 86,988 | 82,384 | 73,316 | 1,01,000 | 1,10,501 | 1,26,236 | 1,42,509 | 1,53,680 |
| Total income | 89,757 | 85,192 | 76,751 | 1,04,613 | 1,14,536 | 1,31,576 | 1,48,178 | 1,61,039 |
| EBITDA | 11,453 | 9,646 | 10,702 | 12,668 | 13,330 | 15,025 | — | 19,924 |
| Profit before tax | 9,218 | 6,986 | 4,438 | 10,009 | 9,833 | 11,316 | 13,574 | 9,141 |
| Net profit | 6,678 | 6,679 | 11,337 | 7,879 | 7,849 | 9,304 | — | 6,287 |
| EPS (₹) | 47.6 | 47.6 | 80.7 | 56.1 | 55.9 | 67.0 | 79.1 | 45.7 |
| Net worth | 52,551 | 52,175 | 60,414 | 67,114 | 71,528 | 64,416 | — | 74,533 |
| Total debt | 10,192 | 25,785 | 23,809 | 20,298 | 18,151 | 22,540 | — | 11,381 |
| Operating cash flow | — | — | 8,351 | 5,999 | 7,264 | 8,294 | 12,724 | 21,928 |
| Free cash flow | — | — | 7,631 | 4,649 | 5,028 | 5,472 | 10,684 | 20,014 |
| Ratio | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Growth | ||||||||
| Revenue growth YoY | — | -5.3 | -11.0 | 37.8 | 9.4 | 14.2 | 12.9 | 7.8 |
| Profit growth YoY | — | 0.0 | 69.7 | -30.5 | -0.4 | 18.5 | — | — |
| Profitability | ||||||||
| EBITDA margin % | 13.2 | 11.7 | 14.6 | 12.5 | 12.1 | 11.9 | — | 13.0 |
| Net margin % | 7.4 | 7.8 | 14.8 | 7.5 | 6.9 | 7.1 | — | 3.9 |
| Return on equity % | 12.7 | 12.8 | 20.1 | 12.4 | 11.3 | 13.7 | — | 8.4 |
| Return on capital % | 16.6 | 12.3 | 11.9 | 13.4 | 13.5 | 15.0 | — | 20.9 |
| Leverage & cash | ||||||||
| Debt to equity | 0.19 | 0.49 | 0.39 | 0.30 | 0.25 | 0.35 | — | 0.15 |
| Cash flow ÷ profit | — | — | 0.74 | 0.76 | 0.93 | 0.89 | — | 3.49 |
| Current ratio | 1.30 | 1.16 | 1.46 | 1.39 | 1.36 | 1.26 | 1.27 | 1.29 |