$LT

Larsen & Toubro Ltd. continues to demonstrate robust operational efficiency, underscored by a return on capital employed (ROCE) of 16.31% as per the latest data. This figure indicates effective utilisation of capital resources relative to earnings, a critical factor in the construction sector where capital intensity is high. The half-year results ending March 2026 further reinforce this strength, with ROCE maintaining a high level at 15.99% and operating profit to interest coverage reaching 4.19 times. These metrics suggest the company is managing its debt obligations comfortably while generating solid operating profits. Additionally, the debt-equity ratio stands at a relatively low 1.15 times, signalling a conservative approach to leverage compared to industry norms. This balance between debt and equity supports financial stability and reduces risk exposure, which is a positive consideration in the evaluation revision.