L&T shares rise 2% to hit a fresh record high after posting strong Q2 performance

Shares of Larsen and Toubro rose by 2% to hit a fresh 52-week high of ₹4062.70 in today's early hours of trade. This milestone comes on the back of reporting a strong Q2 performance in the current fiscal year, with net profits rising 16% to ₹3926 crore on a year-on-year (YoY) basis, as compared to last year's ₹3,395 crore in the same quarter. 

Its revenue from operations rose 10% to ₹67,984 crore in Q2 FY26, versus ₹61,555 crore last year. The order book size too soared by 31% on a YoY basis, to ₹6.67 lakh crore. Profit after tax (PAT) also increased 16% to ₹3900 crore. 

The engineering major also announced today that it has expanded in its offshore wind business by securing a critical role in the High Voltage Direct Current (HVDC) offshore wind program of TenneT, the Dutch German transmission system operator.  

Collaborating with Hitachi Energy, a global technology leader electrification, L&T has been nominated by TenneT to deliver state-of-the-art HVDC converter stations. As per the statement, this initiative would accelerate the integration of large-scale renewable energy into the European power grid, particularly across the German and Dutch sectors of the North Sea. 

As per a recent Motilal Oswal Financial Services report, L&T’s consolidated 2QFY26 PAT was largely in line with their estimate, despite a revenue miss of 5%, citing lower-than-expected revenue from core E&C. According to them, revival in domestic order inflows and non-core asset divestment (L&T has reached an understanding with the Telengana government about divesting its stake in the Hyderabad Metro) should lead to valuation re-rating for the stock. 

On the other hand, the brokerage flags a slowdown in order inflows, delays in the completion of mega and ultra-mega projects, a sharp rise in commodity prices, an increase in working capital, and increased competition are a few downside risks to our estimates as key concerns. 

The shares of L&T are currently trading 1.61% above its closing price. The stocks has gained nearly 10% in a month, and 20% over 6 months, after hitting a 52-week low of ₹2965.30 in April this year.