L&T Q2 results preview: Analysts eye 21% jump in profit; check key factors

Key monitorables during L&T's earnings, analysts said, include a ramp-up in domestic ordering, conversion of the prospect pipeline in international markets, margin performance, working capital cycle

L&T Q2FY26 results preview: Civil construction player Larsen & Toubro (L&T) is scheduled to announce its financial results for the second quarter of the financial year 2025-26 (Q2FY26) on Wednesday, October 29, 2025.

L&T Q2FY26: Profit expectations

Analysts tracked by Business Standard, on average, expect L&T to report healthy results in Q2FY26. They estimate the company’s revenue to grow 16.34 per cent Year-on-Year (Y-o-Y) to ₹71,616.66 crore from ₹61,554.6 crore reported in the corresponding quarter of the previous fiscal year (Q2FY25), and profit after tax (PAT) to rise 21.44 per cent Y-o-Y to ₹4,123.33 crore from ₹3,395.3 crore reported in Q2FY25.

 

 

Meanwhile, an average of three brokerages shows that earnings before interest, taxes, depreciation, and amortisation (Ebitda) may increase 11.90 per cent Y-o-Y to ₹7,119.33 crore from ₹6,362 crore reported in Q2FY25.

L&T Q2FY26: Key things to watch

Key monitorables during L&T’s earnings, analysts said, include a ramp-up in domestic ordering, conversion of the prospect pipeline in international markets, margin performance, and the working capital cycle.  ALSO READ | ITC Q2 preview: Analysts see steady cigarette growth; FMCG margins soft

Here’s what brokerages are expecting in Q2FY26 from L&T:

Motilal Oswal Financial Services (MOFSL): Analysts at MOFSL expect consolidated revenue growth of 16 per cent Y-o-Y, led by 19 per cent Y-o-Y growth in the Core Engineering & Construction (E&C) segment.

 

“We expect the Ebitda margin to remain flat Y-o-Y at 7.6 per cent for Core E&C but to decline 50 bps Y-o-Y at the consolidated level. The company received two ultra-mega orders during the quarter for its energy and hydrocarbon businesses. We will also look out for execution ramp-ups in Saudi projects and trends in the GCC order pipeline,” analysts at MOFSL said in a research note.

 

They expect the company’s revenue to grow 16.2 per cent Y-o-Y to ₹71,500 crore in Q2FY26, Ebitda to rise to ₹7,000 crore (up 9.37 per cent Y-o-Y), and PAT (adjusted) to reach ₹3,900 crore (up 14.3 per cent Y-o-Y).  ALSO READ | PB Fintech Q2 preview: PAT may rise 145% YoY, rev 48%; GST impact in focus 

Kotak Institutional Equities (KIE):  Analysts at KIE expect 20 per cent / 17 per cent Y-o-Y growth in core EPC and consolidated revenues, respectively, as they factor in weakness in domestic execution more than offset by strength in overseas execution.

 

“Do note that half of L&T’s core E&C revenues come from central, state, and CPSE customers. Order inflows are expected to be comparable quarter-on-quarter, given that 1QFY26 order inflows were strong. This implies reasonable low double-digit growth Y-o-Y,” analysts said in a research note.

 

They expect the core E&C business Ebitda margin at 8 per cent, versus 7.6 per cent Y-o-Y, primarily due to a favourable mix effect — a larger share of hydrocarbon segment revenues versus infrastructure. Execution of mega hydrocarbon projects won last year may not be margin-accretive at a segmental level.

 

Analysts expect the company’s revenue to grow 16.8 per cent Y-o-Y to ₹71,913.2 crore in Q2FY26, Ebitda to rise to ₹7,087.3 crore (up 11.4 per cent Y-o-Y), and PAT (adjusted) at ₹4,144.2 crore (up 22.1 per cent Y-o-Y).

 

JM Financial: Brokerage firm JM Financial, in its research note, forecasted L&T to report revenue of ₹71,437 crore in Q2FY26, a 16 per cent increase Y-o-Y, with Ebitda at ₹7,271.4 crore (up 14.3 per cent Y-o-Y) and net income at ₹4,326.10 crore (up 27.4 per cent Y-o-Y).