L&T surges 6%, sees sharpest intraday rally in 6 months on strong Q2 show

Larsen & Toubro (L&T) share price movement Larsen & Toubro’s (L&T) share price surged 6 per cent to ₹3,892, its sharpest intraday rally in the past six months, on the BSE in Wednesday’s intraday trade after the comapny reported healthy earnings for the quarter ended September 2026 (Q2FY27). Earlier, on April 8, 2026, the stock price of the civil construction company soared 8.3 per cent. At 09:23 AM, L&T traded 5 per cent higher at ₹3,845, as compared to a 0.95 per cent decline in the BSE Sensex.

A combined 1.4 million shares changed hands on the NSE and BSE. L&T – Q2 results Infrastructure major L&T on Tuesday reported a 33 per cent jump in consolidated profit after tax (PAT) to ₹5,202 crore for the second quarter ended September 2026, compared with ₹3,926 crore in the same quarter of the previous financial year (2025-26). Consolidated revenue of the company grew 16 per cent to ₹78,750 crore during Q2FY27, driven by progress in various businesses in the Projects, Products & Manufacturing (PPM) portfolio.

ALSO READ: Jio Platforms lists at 21% premium, becomes India's 2nd-most valuable firm Earnings before interest, tax, depreciation and amortization (EBITDA) grew 0.6 per cent year-on-year (YoY) to ₹6,845 crore, while EBITDA margin (excluding other income) contracted 130 bps YoY to 8.7 per cent from 10.0 per cent, primarily due to a higher share of the Projects, Products & Manufacturing (PPM) portfolio in the revenue mix and lower margins across businesses. During the September quarter, the company secured orders worth ₹1.48 trillion, registering a growth of 28 per cent. This included several high-value orders led by the Hydrocarbon, CarbonLite Solutions, Public Spaces & Airports, and Power Transmission & Distribution businesses.

L&T said its consolidated order book stood at ₹8.5 trillion at the group level at the end of September 2026, reflecting 15 per cent growth over March 2026. International orders constituted 54 per cent of the overall order book. ALSO READ: Stock Market LIVE: Sensex cracks 900 pts, Nifty near 22,500; Jio Platforms lists at 21% premium Brokerages view on L&T L&T delivered healthy revenue growth and record order inflows, with the ₹8.5 trillion order books providing robust multi-year revenue visibility.

Despite the challenging geopolitical environment, the company maintained strong execution momentum in the Middle East, particularly in Hydrocarbon projects, while the Energy Conventional segment secured high-value offshore, onshore and CarbonLite orders. However, consolidated EBITDA margin contracted 130 bps YoY to 8.7 per cent, primarily due to the higher PPM revenue contribution, cost pressures in Water & Effluent Treatment projects, supply-chain costs and a higher proportion of projects yet to cross the margin recognition threshold, ICICI Securities said in a note. Management maintained its FY27 guidance of 10-12 per cent order inflow growth and 10-12 per cent revenue growth, with PPM EBITDA margin guidance at approximately 7.8 per cent.

The near-term prospect pipeline remains healthy at approximately ₹10.3 trillion for the balance of FY27, while NWC at a record low of 1.7 per cent of revenue reflects improved working-capital efficiency. Overall, L&T remains well-positioned to benefit from sustained infrastructure and energy investments, with execution-led margin recovery and conversion of the robust order pipeline remaining key monitorables, the brokerage firm said. Management maintained its FY27 guidance despite geopolitical uncertainties.

The company continues to target 10-12 per cent order inflow growth, 10-12 per cent revenue growth, 7.8 per cent PP&M EBITDA margin, while net working capital-to-sales ratio target has been revised to be less than 10 per cent (vs ratio of 10 per cent earlier), analysts at Motilal Oswal Financial Services said. With a prospect pipeline of ₹10 trillion, L&T’s historical win rate of >20 per cent and 1HFY27 inflows at ₹2.1 trillion, the brokerage firm believes that L&T is rightly positioned to meet its inflow target of ₹3.9-4.0 trillion for FY27. Despite supply chain challenges, execution growth has ramped up sharply for the company, thereby giving confidence on revenue growth going ahead, analysts said.

The brokerage firm maintains a 'Buy' rating on L&T with an unchanged SoTP-based target price of ₹4,400, valuing core business at 25x December 2028 estimates. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.