L&T: Breakout Above Multi-Year Resistance Zone🔍 Technical Analysis
Larsen & Toubro Limited stands as a leading performer in the Infrastructure & Construction sector. Technically, the stock has delivered a super bullish rally spanning over two decades, transforming from below ₹100 to reaching ₹3,860 by April 2024 - representing an impressive 38x+ growth showcasing consistent value creation.
The ₹3,860-₹3,960 zone acted as formidable resistance multiple times over several months. However, October 2025 marked a turning point with positive Q2 FY26 results providing the fundamental catalyst for a decisive breakout above this multi-year resistance zone.
The critical development is that the price has sustained above the breakout level for the past month, demonstrating genuine strength rather than a false breakout. The stock created a new all-time high at ₹4,140 and is currently trading at ₹4,069, consolidating gains near the highs.
Entry Strategy: Fresh entry above ₹4,150 with sustained momentum confirmation.
Targets:
- Target 1: ₹4,300
- Target 2: ₹4,400
- Target 3: ₹4,500
Stop Losses:
- Critical Support: ₹3,860-₹3,960 zone (previous resistance, now support)
No expectations below the ₹3,860-₹3,960 zone as it would invalidate the breakout.
💰 Q2 FY26 Financial Highlights (vs Q1 FY26 & Q2 FY25)
Total Income: ₹67,984 Cr (↑ +7% QoQ from ₹63,679 Cr; ↑ +10% YoY from ₹61,555 Cr)
Total Expenses: ₹59,470 Cr (↑ +7% QoQ from ₹55,655 Cr; ↑ +11% YoY from ₹53,638 Cr)
Financial Profit: ₹8,513 Cr (↑ +6% QoQ from ₹8,024 Cr; ↑ +8% YoY from ₹7,917 Cr)
Profit Before Tax: ₹6,336 Cr (↑ +8% QoQ from ₹5,860 Cr; ↑ +14% YoY from ₹5,555 Cr)
Profit After Tax: ₹4,678 Cr (↑ +8% QoQ from ₹4,318 Cr; ↑ +14% YoY from ₹4,099 Cr)
Diluted EPS: ₹28.54 (↑ +9% QoQ from ₹26.30; ↑ +16% YoY from ₹24.69)
🧠 Fundamental Highlights
Larsen & Toubro delivered exceptional Q2 FY26 performance with consolidated PAT surging 16% YoY to ₹3,926 crore and revenue growing 10% to ₹67,984 crore. The company reported stellar 45% YoY growth in order inflows to ₹1.16 trillion, driving the order book to an all-time high of ₹6.67 trillion (up 31% YoY), providing robust revenue visibility for years.
EBITDA grew 7% YoY to ₹6,807 crore with margins at 10.1%. H1 FY26 consolidated PAT jumped 22% to ₹7,543 crore on 13% revenue growth to ₹1,31,662 crore. International revenues constituted 56% of Q2 revenue at ₹38,223 crore, while international orders accounted for 65% of order inflow at ₹75,561 crore.
The Projects & Manufacturing order book maintains balanced geographic mix with 51% domestic and 49% international. Infrastructure segment dominates with 61% share of order book (₹3.74 trillion), followed by Energy at 30% (₹1.84 trillion), showcasing L&T's core strength in infrastructure and energy.
Strategic initiatives gaining traction include Carbon Light Solutions prospects pipeline at ₹460 billion (doubled from ₹240 billion last year), green & clean energy opportunities at ₹180 billion (up 18x from ₹10 billion), and high-tech manufacturing prospects at ₹310 billion (doubled from ₹160 billion YoY).
The company entered strategic partnership with General Atomics Aeronautical Systems for MQ-series RPAS production to enhance India's defense capabilities. L&T secured major ultra mega orders in Middle East hydrocarbon business and holds L1 position on three bids totaling $4.5 billion in Kuwait with strong pipeline in Saudi Arabia, Qatar, and UAE.
✅ Conclusion
Larsen & Toubro's remarkable two-decade journey from sub-₹100 to ₹4,140 all-time high, backed by exceptional Q2 FY26 showing 16% PAT growth and 45% order inflow surge, validates the infrastructure leadership thesis. Sustained breakout above ₹3,860-₹3,960 resistance with current trading at ₹4,069 provides technical confirmation for next leg toward ₹4,500. Record ₹6.67 trillion order book (31% YoY growth), 65% international order contribution, and balanced geographic mix demonstrate execution excellence. Strategic focus on green energy (₹180 billion pipeline) and defense partnerships provide multi-year growth visibility. Entry above ₹4,150 targets ₹4,500 with strong support at breakout zone.
Disclaimer: This analysis is for educational purposes only. Please consult your financial advisor before making investment decisions. Stock markets are subject to risks.
