Larsen & Toubro shares faced selling pressure following the release of its first-quarter FY27 results, as the market weighed a strong order book against limited valuation upside.
The engineering conglomerate reported a soft start to the fiscal year, consistent with earlier management warnings that supply-chain disruptions stemming from the West Asia conflict would weigh on project execution during the first half of FY27.
Despite the operational headwinds, L&T’s management reiterated its confidence in meeting full-year FY27 growth targets, citing an expectation that execution momentum will pick up in the second half.
The company’s order book remains robust, providing a visible pipeline for future revenue.
However, investors appear cautious, with market participants questioning whether the current share price already reflects the long-term value of this backlog.
The disconnect between the strong order intake and the muted market reaction highlights a broader theme in the Indian infrastructure sector: valuation discipline.