The shares of Larsen & Toubro (L&T) surged over 2 percent on October 30, reaching a new record high of Rs 4,048 per share following the release of its second-quarter results for the financial year 2026. The positive market reaction is attributed to the company's strong earnings performance, with several brokerages expressing optimism and raising their target prices for the stock. L&T's robust order book also contributed to the bullish sentiment among investors, as the company continues to thrive in the engineering, procurement, and construction sectors.

In its Q2 results announced on October 29, L&T reported a 16 percent year-on-year increase in consolidated net profit, totaling Rs 3,926 crore, compared to Rs 3,395 crore during the same quarter last year. Revenue from operations also saw a 10 percent YoY rise, reaching Rs 67,984 crore. Despite the figures falling short of expectations—analysts had anticipated a revenue increase of 15 percent YoY—the company reported a 45 percent surge in order inflows, indicating a strong demand for its services. This outperformance in orders, particularly in core engineering and construction, has led analysts to reassess their outlook on the stock.

Following the earnings announcement, various brokerages have issued updated ratings and target prices for L&T shares. Motilal Oswal raised its target price to Rs 4,500, while Investec increased its target to Rs 4,800, reflecting an upside potential of over 21 percent. CLSA set a target of Rs 4,320, and JP Morgan offered a target of Rs 4,240. These projections highlight the market's confidence in L&T's growth trajectory, especially given the solid order pipeline and potential for further valuation re-rating driven by improved domestic order inflows and divestments of non-core assets. Overall, the strong Q2 results and positive broker sentiment position L&T favorably for continued performance in the financial landscape.