L&T stock climbs to 52-week high on fresh order win ahead of Q2 results; check preview

This is the second order for the firm this week. L&T’s power transmission and distribution (PT&D) vertical has won a batch of grid infrastructure orders for the construction of a 380 kV substation and transmission lines in Saudi Arabia.

The first order involves constructing a 380/33 kV Gas-Insulated Substation (GIS), including associated hybrid GIS components, 380 kV transformers and reactors, as well as subsystems for power system protection, control, automation, telecommunications, HVAC, and firefighting.

The second set of orders involves constructing 380 kV overhead transmission lines spanning a total route length of over 420 km.

As part of its National Renewable Energy Programme (NREP), Saudi Arabia is upgrading its electricity grid to support a surge in renewable energy projects. Transmission lines and substations are vital to scaling up and strengthening the country’s overall power infrastructure.

Following the order win, shares of L&T gained the spotlight. At 10:24 AM, the stock was trading at ₹3,989.20 apiece, rising 0.41%.

Q2 earnings preview

Further, the firm will report its September quarter earnings on Wednesday. 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.