Larsen & Toubro Q4 FY26: ROE dips, inflows ₹89,800 Cr

What moved L&T stock on April 22, 2026

Larsen and Toubro (L&T) shares fell 2.0% to ₹3,250 on April 22, 2026, after concerns emerged that Q4 order inflow growth had slowed below estimates. At that price, the stock was 19% below its 52-week high of ₹4,000. The 52-week low was ₹2,800, based on the market snapshot provided. The trigger cited by the market was the pace of order inflows, with investors reassessing the near-term outlook versus valuation.

Price, valuation, and key technical levels cited

The April 22 snapshot listed L&T’s market capitalisation at ₹4,47,000 crore and trailing P/E at 28x. The same snapshot highlighted a support band of ₹3,080 to ₹3,180 and resistance in the ₹3,500 to ₹3,700 zone. A 12-month analyst target range of ₹3,700 to ₹4,100 was also cited in the data table. These figures reflect market levels and expectations captured on that date, rather than company guidance.

Order inflows in Q4FY26: ₹89,800 crore, near last year’s level

For the quarter ended March 31, 2026 (Q4FY26), L&T’s order inflows were reported at ₹898 billion, which normalises to ₹89,800 crore. The text described inflows as broadly in line with Q4FY25 levels, supported by traction in domestic and international markets. This order-flow datapoint sits at the centre of the April 22 trading reaction because the market narrative focused on “growth slows below estimate,” even though the company described the absolute inflow level as broadly stable year-on-year.

ROE trends: 15.5% reported, 16.6% adjusted

L&T’s trailing twelve-month return on equity (ROE) as of March 31, 2026 stood at 15.5%. This was stated to be down 80 basis points year-on-year versus 16.3% in Q4FY25. The company also noted that ROE includes an impact of 110 basis points from a one-time provision arising from changes in the Labour Code. Excluding that one-time provision, trailing twelve-month ROE was stated at 16.6%.

Q4FY26 earnings: PAT down 3%, revenue up 11%

A separate Q4 result update reported that consolidated profit after tax (PAT) fell 3% year-on-year to ₹5,326 crore for the March quarter FY26. The comparable PAT in the year-ago period was ₹5,497 crore. The filing attributed the year-on-year decline primarily to an exceptional gain (net of tax and NCI) of ₹475 crore recorded in the previous year. Revenue from operations rose 11% to ₹82,762 crore in Q4FY26, compared with ₹74,392 crore in Q4FY25.

Segment pressure flagged: realty-linked revenue decline

Within segmental commentary included in the text, a segment revenue figure of ₹16.9 billion was reported, normalised to ₹1,690 crore. That segment revenue declined 29% year-on-year, attributed primarily to lower handover of residential units in the realty business versus the previous year. The same section noted that this also weighed on the segment margin, without providing a numeric margin figure.

Other recent trading days referenced: March 2 and March 19

The dataset also included other examples of L&T price moves during FY26. On March 2, 2026, L&T shares were reported down 6.54% to ₹3,998.60 versus a previous close of ₹4,278.30, amid “Middle East tensions,” despite order wins. That report cited market capitalisation at about ₹5.50 lakh crore (₹5,50,000 crore) and a P/E ratio of 33.85 at the time, indicating valuation moved with price and earnings expectations across different dates.

Separately, as of March 19, 2026 (16:00 IST), the text showed L&T at ₹3,444.00 with a fall of 4.54% and a close of ₹3,434.50, down 4.81%. These are point-in-time price references and not directly linked to the Q4 operational metrics, but they illustrate elevated volatility around macro and project headlines.

Earlier quarter reference: Q3 order inflows and one-time provision

The provided context also referenced a Q3 update where order inflows reached an “all-time high” of ₹1.36 lakh crore (₹1,36,000 crore). In that quarter, net profit was reported down 4.3% year-on-year to ₹3,215 crore due to a one-time provision for employee benefits, while revenue increased 10% year-on-year. Excluding the one-time provision, profit was stated to have grown 31%.

Key figures at a glance

Why the ROE and inflow debate matters for investors

The two datapoints that stand out in the provided disclosures are the stability in absolute Q4 order inflows and the decline in trailing ROE versus last year. Investors often use order inflows as a forward indicator for execution visibility in EPC-led businesses, while ROE captures how efficiently capital is being deployed across cycles. In this case, ROE was also affected by a Labour Code-related one-time provision, and management provided an adjusted ROE figure to separate the recurring trend from the exceptional impact.

At the same time, the April 22 trading note highlights how the market can react not just to levels, but to whether growth comes in above or below estimates. With L&T also seeing macro-sensitive trading days during March, the stock action presented in the text reflects a combination of company-specific triggers (order inflows, provisions) and broader sentiment (geopolitical headlines and sector positioning).

Conclusion

L&T’s Q4FY26 disclosures show trailing ROE at 15.5% (16.6% excluding a one-time provision) and order inflows of ₹89,800 crore, alongside a 3% year-on-year decline in PAT and 11% growth in revenue from operations. The April 22, 2026 sell-off of 2% to ₹3,250 was linked in the market narrative to order inflow growth coming in below expectations. Future clarity, as framed in the text, rests on how investors interpret the pace of order inflows, the impact of one-time provisions, and management commentary around financial performance parameters following Labour Code changes.