Larsen & Toubro (L&T) Share Price Jumps on Goldman Sachs Upgrade: Realty Reshuffle, Order Book Strength and Fresh Analyst Forecasts (Dec 12, 2025)

Meta description: Larsen & Toubro (L&T) surged after a Goldman Sachs upgrade to “Buy” with a ₹5,000 target. Here’s the latest news, forecasts, and what analysts are watching next.

Mumbai | December 12, 2025 — Larsen & Toubro Limited (L&T), India’s engineering and infrastructure bellwether, is back in the spotlight on Friday after a high-profile brokerage upgrade helped push the stock close to record territory. The move arrives just days after L&T announced a structural shake-up in its realty business—another signal that the conglomerate is trying to sharpen focus, improve capital allocation, and ride the next capex (capital expenditure) upcycle.

Here’s a detailed round-up of today’s key news, current forecasts, and the most important analyst narratives shaping expectations for L&T as of 12.12.2025.

What’s driving L&T today: Goldman Sachs turns bullish, sets ₹5,000 target

L&T shares were among the notable gainers in morning trade on December 12 after Goldman Sachs upgraded the stock to “Buy” from “Neutral” and raised its price target to a Street-high ₹5,000, implying roughly ~25% upside from recent levels, according to Reuters. ^[1]

The upgrade landed on a day when Indian equities were broadly higher, with investors also tracking macro cues like currency pressure and domestic inflation expectations. Reuters reported the rupee remained under pressure and hit a record low, contributing to a cautious undertone even as equities advanced. ^[2]

In price terms, multiple market reports pegged L&T’s intraday move around the ₹4,109–₹4,114 zone, placing it near its 52-week high around ₹4,139–₹4,140. ^[3]

The Goldman thesis in plain English: re-rating potential + “new L&T” opportunity stack

Broker upgrades are common; big upgrades with a new “Street-high” target are not. Goldman’s argument—echoed across market coverage—is essentially that L&T is now positioned for a multi-year re-rating, not just a one-quarter beat.

1) Stronger visibility across segments + margin cycle tailwinds

Economic Times reporting on the note said Goldman pointed to growth visibility across business lines, a healthy order backlog, lower working capital needs, and improved capital allocation as key supports for the upgrade. It also expects margins to strengthen through the FY28–FY30 execution cycle, which can materially lift earnings if execution stays tight. ^[4]

2) Defence, green hydrogen, nuclear: from “optional” to “meaningful”

The more interesting part is where Goldman thinks L&T’s next leg of growth comes from: defence, green hydrogen, and nuclear power—business lines that have historically been smaller relative to L&T’s mega EPC engine.

Economic Times reported Goldman’s projection that these newer verticals could rise to about 15% of order inflows by FY35, up from roughly ~4% currently. ^[5]

3) Growth forecast: low double-digit revenue, mid-teens profit

On the financial trajectory, coverage of the note indicated Goldman expects low double-digit revenue growth and mid-teens profit-after-tax (PAT) growth over the next five years—an outlook that hinges on steady capex momentum and consistent execution. ^[6]

Under the hood: L&T’s latest earnings and why the order engine matters

The reason brokerages care so much about L&T is simple: in India, L&T is effectively a capex seismograph. If the country is building, L&T tends to show it in orders and execution.

In its results for the quarter ended September 30, 2025 (Q2 FY26), Reuters reported that L&T’s consolidated profit after tax rose ~16% to ₹39.26 billion (₹3,926 crore), while revenue rose ~10% to ₹679.84 billion (₹67,984 crore). Reuters also highlighted a key operational datapoint: total orders rose 45% year-on-year, with international orders making up 65% of the total in that period. ^[7]

NDTV Profit further reported that L&T’s consolidated order book stood at ₹6,67,047 crore as of September 30, 2025—up 15% over March 2025—with international orders comprising 49% of the order book. It also reported Q2 order inflow of ₹1,15,784 crore, with international inflow at ₹75,561 crore (65%). ^[8]

Put differently: even when India’s domestic cycle has speed bumps (monsoon quarters, election timing effects, project clearances), L&T’s increasingly global order book can help smooth volatility—though it introduces its own currency and geopolitical sensitivities.

Corporate news this week: L&T begins consolidation of its realty business

Away from the stock pop and brokerage chatter, L&T has also made a meaningful corporate structure move—one that management frames as a long-term brand and capital strategy for real estate.

What happened

In an official press release issued from Muscat dated December 8, 2025, L&T said its Board approved the transfer of its Realty Business Undertaking (Realty BU) to L&T Realty Properties Ltd, a wholly owned subsidiary, via a slump sale under a Scheme of Arrangement, subject to regulatory approvals. ^[9]

The company described this as the start of a phased consolidation of all real estate assets into L&T Realty, aiming to create a unified platform with more scale, agility, and financial strength. ^[10]

Why it matters

In the same release, L&T positioned the consolidation as a way to let L&T Realty “perform independently” with the ability to expand its pipeline via land bank growth and joint developments—activities that typically require periodic capital infusion. ^[11]

The press release also stated that L&T Realty has a development potential of ~65 million sq. ft., spanning upscale residential communities, Grade-A commercial spaces, and high-street retail. ^[12]

The numbers markets are watching

Press coverage in the Times of India said the transfer was valued at ₹6,297 crore, and that the real estate business generated ₹641 crore in revenue in the first half of FY26, about 0.93% of L&T’s standalone revenue—useful context on materiality relative to the core EPC engine. ^[13]

Business Standard additionally reported that once the scheme takes effect, L&T Realty would issue ~393.53 crore equity shares (face value ₹10) at a ₹6 premium to L&T, with provisions for value adjustments if required. ^[14]

Translation: This isn’t just an “internal shuffle.” It’s a setup for a cleaner real estate vehicle that could, over time, enable clearer reporting, sharper accountability, and potentially more flexible funding options—while keeping the parent’s main narrative anchored on EPC, energy, manufacturing, and emerging industrial adjacencies.

Analyst forecasts and price targets: where the Street stands right now

With today’s upgrade, L&T’s target-price landscape has widened—and it’s a big reason the stock is getting outsized attention.

Investing.com’s compiled analyst table shows (among others):

Goldman Sachs:Buy, ₹5,000 (upgrade dated Dec 11, 2025)
Nomura/Instinet:Buy, ₹4,640 (maintain dated Dec 02, 2025)
JPMorgan:Buy, ₹4,780 (maintain dated Nov 04, 2025)
HSBC:Hold, ₹4,000 (maintain dated Oct 31, 2025) ^[15]

Trendlyne’s consensus snapshot, meanwhile, put L&T’s average target around ₹4,588.50, implying low-double-digit upside from early-Dec trading levels. ^[16]

And on valuation context, Mint’s market stats page listed L&T around a TTM P/E of ~30.68, and noted the stock’s trading range on Dec 12 included ₹4,109 on the high side, with the 52-week high at ~₹4,139. ^[17]

The “big picture” narrative: L&T as India’s capex barometer—with a growing global spine

The most durable bull case on L&T tends to be less about one brokerage note and more about a structural idea:

India continues investing in transport, energy transition, power systems, urban infrastructure, and industrial capacity.
The Middle East and other international markets remain large sources of complex EPC work.
L&T’s execution track record and bid discipline help it convert opportunities into multi-year revenue.

Reuters’ October results coverage captured this tone well, quoting management optimism on capex trends in India and the Middle East and reporting L&T said it was well placed to surpass its 10% annual order growth forecast at that time. ^[18]

In that framing, the Goldman upgrade acts like a loudspeaker: it amplifies a view that many investors already hold—L&T is not just “steady”; it’s becoming more strategically option-rich (defence, hydrogen, nuclear) while still running the country’s biggest project machine.

Key risks and near-term catalysts investors will track next

Even a well-oiled engineering giant lives in the real world (a place famous for delays, geopolitics, and invoices that travel at the speed of government paperwork).

Here are the pressure points that matter now:

Execution and margin delivery: Strong orders don’t automatically translate to stronger profitability if project mix, subcontracting costs, or timelines move against you. Reuters noted margin pressure in Q2 due to higher expenses, including subcontracting. ^[19]
Currency + overseas exposure: With international orders a major share of inflow, FX movement and geopolitical risk management become central—not peripheral. The rupee’s weakness and broader macro uncertainty were part of the market backdrop today. ^[20]
Regulatory approvals for the realty scheme: The realty consolidation is subject to approvals, and the market will watch timelines and clarity on the end-state structure. ^[21]
Capex momentum: Goldman’s thesis explicitly leans on domestic capex recovery and long-cycle opportunities. If private capex stalls or public capex slows, sentiment can cool quickly. ^[22]

Bottom line

As of December 12, 2025, Larsen & Toubro is being pulled into the spotlight by a rare combination of catalysts: a major brokerage upgrade with a Street-high target, a recent corporate restructuring step in real estate, and a financial backdrop where order momentum and international execution remain the core narrative.

The immediate question the market will keep asking isn’t “Can L&T win orders?”—it’s practically built to do that. The sharper question is: Can L&T convert this multi-year order engine into a higher-quality earnings profile, while scaling newer verticals (defence, green hydrogen, nuclear) and keeping the balance sheet and working capital disciplined?