The shares of Larsen & Toubro (L&T) rose over 2 percent on October 30 after the company released its results for the second quarter of the financial year 2026. Brokerages remain bullish on the stock, with some of them raising target prices following the earnings announcement.
The shares of the Indian multinational company which is engaged in engineering, procurement and construction projects hit a fresh 52-week high of Rs 4,048 apiece in the early trading hours of Thursday.
L&T Q2 Results:
L&T released its results for the July-September quarter of FY26 in the post market hours of October 29 (Wednesday). The company’s consolidated net profit rose 16 percent year-on-year (YoY) to Rs 3,926 crore during the quarter under review, as against the Rs 3,395 crore net profit reported in the same period of the previous financial year.
Its revenue from operations rose 10 percent YoY to Rs 67,984 crore in Q2 FY26, as against Rs 61,555 crore in Q2 FY25. According to a Moneycontrol poll of six brokerages, L&T's consolidated revenue was expected to rise 15 percent YoY to Rs 70,818 crore, and profit after tax (PAT) was projected to rise 17.5 percent YoY to Rs 3,990 crore.
The infrastructure company reported a 45 percent year-on-year rise in orders.
Motilal Oswal raises target price for L&T shares:
Motilal Oswal raised target price for L&T shares to Rs 4,500 apiece, from its earlier Rs 4,300 apiece estimate, while maintaining its ‘Buy’ rating. The latest target price implies an upside potential of nearly 14 percent from the stock’s previous closing price of Rs 3,958 apiece.
The domestic brokerage said that the firm’s consolidated profit after tax was in line with its estimate, despite revenue missing expectations by 5 percent mainly due to lower-than-expected revenue from core E&C. On the positive side, a sharp outperformance was seen in order inflows for the core E&C, it added.
“Revival in domestic order inflows and non-core asset divestment should lead to valuation re-rating for the stock,” Motilal further said.
What other brokerages said:
Investec kept a 'Buy' rating on the stock, while raising its target price to Rs 4,800 per share from Rs 4,460 per share. The latest target price implies an upside potential of more than 21 percent from the stock's previous closing price. The brokerage said that the company's order inflows remain robust, driven by international orders.
CLSA kept an 'Outperform' rating on the stock, with a target price of Rs 4,320 apiece. This implies an upside potential of more than 9 percent from the stock's previous closing price. The international brokerage said that FY26 order pipeline was solid, and sees that the company is likely set to beat full-year guidance.
JP Morgan shares had an 'Overweight' call on the stock, with a target price of Rs 4,240 apiece. This implies an upside potential of more than 7 percent from the stock's previous closing price. The international brokerage said that the company reported strong earnings, with order inflows coming as the biggest surprise.
L&T share price history:
L&T shares have increased more than 3 percent in the past five days, and over 10 percent in the past one month. The stock has gained nearly 21 percent in the past six months.
Its P/E ratio stands at around 30. It is currently up over 36 percent from its 52-week low of Rs 2,965.30 per share, which it had hit in April this year.
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