L&T Q2 results: Revenue, net profit likely to see double-digit growth; Check options strategy and key technical levels

Engineering and construction giant Larsen and Toubro Limited (L&T) will announce its results for the September quarter on Wednesday, 29 October. According to experts, L&T could report healthy double-digit growth in revenue and net profit, aided by a rise in order execution and a favourable project mix.

The company's consolidated revenue could rise by between 13% and 15%, reaching a figure between ₹70,170 crore and ₹70,655 crore, supported by steady order execution. In the same quarter of last fiscal year, L&T reported revenue of ₹61,555 crore, and in the June quarter, it reported revenue of ₹63,679 crore.

The company could see robust growth of 15–20% in net profit, reaching ₹3,930–₹4,090 crore. The company reported a net profit of ₹3,395 crore in Q2 FY25, compared to ₹3,617 crore in the previous quarter.

During the September quarter earnings, investors will monitor operating margins, order inflow numbers, the project pipeline and execution capabilities. Management commentary on domestic economic activity and government capital expenditure will also be closely followed.

Ahead of the Q2 results announcement, L&T shares are trading marginally higher at ₹3,936 per share, up 0.3% on the NSE. The stock has risen by over 7.2% this month and is up 8.7% so far this year.

Technical view

L&T continues to sustain strong momentum, with the stock extending its rally following a sustained breakout above the short-term moving averages. The price is trading well above both the 21-week and 50-week exponential moving averages (EMAs), signalling a bullish medium-term trend. The recent higher high–higher low formation indicates that buyers are in control.

However, the stock is now approaching a significant resistance zone between ₹3,950 and ₹4,050, where several weekly peaks have occurred since the beginning of 2024. This zone represents a crucial supply area. A decisive close above it could pave the way for further gains towards ₹4,250–₹4,400. On the downside, immediate support lies near ₹3,600–₹3,550, aligned with the 21-week EMA.

Options outlook

For the 25 November expiry, the highest call open interest build-up is seen at the 4,000 strike, suggesting a resistance around this zone. Additionally, significant call and put open interest was also observed at 3,900 strike, indicating consolidation around this zone.

Currently, the at-the-money (ATM) for November expiry is at 3,940 and is priced at ₹201, implying an expected move of approximately ±5.1% by expiry.

Options strategy for Larsen and Toubro

The implied move of ±5.1% opens up opportunities for both volatility and directional trades. Traders expecting a significant price swing can opt for a Long Straddle, buying both call and put options of the same strike and expiry. The strategy benefits if Larsen and Toubro move beyond the implied range of ±5.1%.

Meanwhile, those anticipating limited movement may consider a Short Straddle, which benefits if the stock stays within the ±5.1% band post-earnings.

For directional traders, a Bull Put Spread may be ideal for a breakout from the ₹4,050 resistance zone, while a Bear Call Spread suits those expecting a breakdown below the immediate support zone of ₹3,800.