Strong domestic orders, non-core divestments may drive rerating for L&T

Larsen & Toubro (L&T) reported a miss on revenue for Q2FY26. Order inflows were higher than consensus, with growth guidance for orders upgraded. The growth guidance of 15 per cent year-on-year (Y-o-Y) for group revenues and 8.5 per cent operating profit margin for the core business in FY26 was maintained.

 

The consolidated Q2FY26 net profit was in line, though revenue guidance was missed due to lower-than-expected revenue from core engineering, procurement and construction (EPC). Order inflows for the core EPC business stood at Rs 96,800 crore, and the operating profit margin improved by 20 basis points Y-o-Y. Net