L&T shares in focus after earnings miss, but H2 optimism keeps analysts bullish

Shares of engineering and infrastructure conglomerate Larsen & Toubro Ltd

. (L&T) will be in focus on Thursday, October 30, after the company reported its September quarter results post market hours on Wednesday.

L&T's Q2FY26 revenue stood at ₹67,983 crore, below the CNBC-TV18 poll estimate of ₹69,950 crore, as execution was impacted by unseasonal monsoon. Net profit came in at ₹3,926 crore versus an estimate of ₹3,990 crore.

EBITDA was at ₹6,806.5 crore, slightly below the CNBC-TV18 poll estimate of ₹6,980 crore, while margins were steady at 10%, in line with expectations.

Brokerage firm CLSA has maintained an 'Outperform' rating on L&T with a price target of ₹4,320. The brokerage said Q2 met three of four guidance parameters, new orders, margins, and working capital, while execution lagged due to excessive rainfall.

The biggest surprise, according to CLSA, was the 54% year-on-year surge in new orders, led by multi-billion-dollar projects from the energy sector and private capex in India.

L&T guided for a robust H2 prospects pipeline of $114 billion, implying 29% growth, which CLSA said looks strong despite concerns of a slowdown in the Middle East.

Citi also retained its 'Buy' rating on the stock with a price target of ₹4,500, citing strong core order inflows, which rose 54% YoY (versus its estimate of over 40%).

The brokerage expects order inflow momentum to continue in the near term, led by a 29% YoY rise in H2 pipeline prospects and $4.5 billion worth of Middle East orders already under L1 status.

Citi mentioned that core margins expanded 20 basis points YoY, driven by execution efficiencies and favourable claim settlements, despite the revenue miss and softness in hydrocarbon margins.

The brokerage added that while the stock has performed well recently, order inflow-linked developments and a likely seasonal pickup in execution during H2 should keep sentiment positive.

Announcement of the next five-year strategy plan post Q4FY26 and a potential resolution of the Hyderabad Metro project by FY26-end are also seen as key triggers.

Nuvama too maintained a 'Buy'’ rating on L&T and raised its price target to ₹4,680.

The management reaffirmed its FY26 guidance of 15% revenue growth and 8.5% core OPM, citing that order inflow growth will surpass the 10% target (H1 inflows over 48% YoY), with another $4.5 billion of orders under L1.

Shares of L&T settled 0.39% lower on Wednesday at ₹3,957.30. The stock has gained 8% over the past month.