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L&T Earns Moody's Baa1 Upgrade, Tops Sovereign Rating
8 Jul
Summary
- Moody's upgraded L&T's issuer rating to Baa1, exceeding India's sovereign rating.
- The infrastructure giant secured a stable outlook from the prime financial services company.
- L&T's Q4FY26 net profit fell 3% to Rs 5,325.60 crore, revenue rose 11.3%.
Larsen & Toubro (L&T) has been upgraded by Moody's to a 'Baa1' long-term issuer rating. This places the Indian multinational company in an elite category, with its credit profile assessed as higher than the sovereign rating of India ('Baa3'). Moody's also assigned a stable outlook to L&T, indicating confidence in its financial stability.
The 'Baa1' rating signifies a high-quality investment-grade credit profile. Moody's cited L&T's dominant market position, strong revenue visibility, corporate governance, and favorable industry prospects as key strengths contributing to this upgrade.
In its Q4FY26 financial results, L&T reported a consolidated net profit decline of 3% to Rs 5,325.60 crore, compared to the previous year. However, consolidated revenue experienced an 11.3% year-on-year growth, reaching Rs 82,762 crore. Operating income rose by 5% to Rs 8,611 crore, although the operating margin slightly contracted.
