Highlights

• L&T shares rose nearly 3% after a revised brokerage rating.
• Goldman Sachs lifted its stance to ‘Buy’ and raised the price target.
• Q2 FY26 results showed double-digit revenue growth and a profit increase.
• L&T shares gained over 11% in 2025 to date and 13% in six months.

Shares of Larsen & Toubro (NSE:L&T) advanced nearly 3% on December 12 as Goldman Sachs issued an updated assessment of the engineering and infrastructure company. The stock moved to ₹4,114 during morning trading, marking its second consecutive session of gains. With this move, L&T moved closer to its 52-week high of ₹4,140, achieved in November.

Brokerage View and Revised Targets

Goldman Sachs upgraded its rating on L&T from Hold to Buy and increased its target price to ₹5,000 per share, compared with the earlier level of ₹3,730. The revised target suggests an estimated upside of about 25% over the previous closing price of ₹4,003.9.

According to the brokerage, L&T may benefit from activity in defence, green hydrogen, and nuclear power segments. Goldman Sachs noted expectations of mid-teen revenue and profit growth over the next five years. It added that the company’s order backlog and an improvement in domestic capital expenditure sentiment are contributing to earnings visibility across the near, medium, and longer term.

Financial Performance in Q2 FY26

L&T reported its quarterly numbers for the July–September period on October 29. Consolidated net profit for Q2 FY26 increased 16% year-on-year to ₹3,926 crore, compared with ₹3,395 crore in the same quarter of the previous year. The figure came in slightly below market expectations.

Operational revenue rose 10% year-on-year to ₹67,984 crore, up from ₹61,555 crore in Q2 FY25. The results reflected continued activity across key project and services segments, though the update did not detail segment-wise performance.

Overview

The updated brokerage call forms part of ongoing analyst assessments of the company’s long-term demand prospects across industrial and infrastructure segments. While L&T’s financial performance and order book trends remain central to discussions around the stock, broader economic conditions, project execution cycles, and capex trends continue to shape expectations.

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