L&T Q2 results: Revenue could see double digit growth driven by new order inflow and execution; Key focus on West Asia crisis and its impact

Engineering and construction giant Larsen & Toubro (L&T) will announce its September quarter earnings on Tuesday, October 27. According to experts, L&T could report double-digit revenue growth, supported by strong order inflows and steady execution.

L&T Q2 revenue and net profit expectations

The company’s consolidated revenue could rise about 10% YoY to between ₹74,810 crore and ₹75,110 crore, driven by steady execution of its order book across segments. L&T reported consolidated revenue of ₹67,942 crore in the previous quarter and ₹67,984 crore in the September quarter of FY26.

However, L&T’s profitability and margins may come under some pressure, as geopolitical headwinds have affected project execution, especially in the West Asia region. Net profit is likely to remain flat on a yearly basis. L&T reported a net profit of ₹3,926 crore in Q2FY26 and ₹4,123 crore in the previous quarter.

During the September quarter results, investors will monitor the impact of the West Asia crisis on the company’s order execution. Overall order book growth and segment performance will also be key parameters to watch.

Ahead of the Q2 results, L&T shares closed 0.9% higher at ₹3,680 on NSE on Monday, October 26. L&T shares are down 9.8% so far this year.

L&T share technical outlook ahead of Q2 results

L&T has found a floor after a steady decline. Since early October, it has held above ₹3,607, a level it has tested several times. Each time, buyers stepped in, leaving long lower shadows on the candles. As a result, the stock has traded in a narrow band of roughly ₹3,607 to ₹3,700 for nearly three weeks.

The next test is just above the 20-day. The stock has not closed above this average since late September. The 20-day EMA has also been below the 50-day EMA since mid-September, so the broader trend remains weak.

The Directional Movement Index (DMI) shows a downtrend that is losing pace. However, the ADX has flattened at 33.7. This suggests the selling pressure is easing, though buyers have not yet taken over.

L&T options: what the November contracts are pricing in

L&T reports its results on October 27, the day the October contracts expire. That makes the November contracts expire on November 23. This means the options market expects a move of about ±6.1% by the November expiry, which puts the expected range at roughly ₹3,473 to ₹3,927.

L&T’s history shows that its big moves come after the first day, not on it. For the day after, in the last 12 quarters, the next-day move never went beyond ±5%. In the 10 days window, the stock moved more than 6.1% in five quarters. After the Q1FY27 results, for example, the stock rose 2.5% the next day and 5.3% over 10 days.

Options strategy for L&T Q2 results

If you expect a breakout from the range: A long straddle, buying the 3,700 call and put, could be considered. L&T has often moved more than 6% within 10 days of its results, and the stock is now at the edge of a tight three-week range. The strategy makes profit if L&T moves below roughly ₹3,473 or above ₹3,927 by the November expiry. Since the bigger moves have usually come a few days after the results, this trade allows time for the move to develop. However, option premiums usually fall after the results, so the move still needs to be large.

If you expect the stock to stay in a range: A short straddle, selling the 3,700 call and put, could be considered. L&T rarely moves sharply on the first day after its results, and premiums usually fall once the results are out. The strategy makes profit if the stock stays between roughly ₹3,473 and ₹3,927 until the November expiry. However, the stock has moved more than 6% within 10 days in several past quarters, and this trade must be held for nearly a month. Strict stop-losses are important, and traders can limit the risk by buying a call and a put further away from the current price.

If you want to trade a move in one direction: The stock is at a turning point, testing the top of its range and the 20-day EMA. If L&T closes above ₹3,704, a bull put spread could be considered. If it closes below the ₹3,607 support, a bear call spread may be more suitable.