L&T’s share price is rallying and is among the top gainers in trade today. The street is responding positively to the strong guidance by the management. The L&T management expects order inflow growth to exceed 10%, revenue growth of 15% and EBITDA margin of 8.5% for FY26.

However, the most important catalyst is the company’s Hyderabad Metro stake divestment. The company confirmed in-princple understanding with Telangana govt to divest its stake in Hyderabad Metro. The company now plans to conclude this transaction by Q4FY26 . Under the arrangement, the entire debt of Rs 13,000 crore of Hyderabad Metro would be taken over by SPV floated by Telangana govt. Divestment of this stake would reduce the debt and interest burden from the consolidated financials

Motilal Oswal on L&T

Motilal O

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