L&T shares rise 3% after Q2 results; secures offshore wind deal with TenneT

Shares of Larsen & Toubro Ltd (L&T) climbed as much as 2.61 per cent in Thursday’s trade to touch the day’s high of Rs 4,055 per share after the engineering and construction major posted a strong set of numbers for the September quarter and followed it up with a marquee project announcement in the global offshore wind space.

In a regulatory filing late Wednesday, the company reported a 16 per cent year-on-year (YoY) rise in consolidated profit after tax (PAT) to Rs 3,926 crore for the quarter ended September 30, 2025. Consolidated revenue from operations stood at Rs 67,984 crore, marking a 10 per cent increase over the same period last year.

Adding to the upbeat mood, L&T on Thursday announced that it has secured a critical role in the High Voltage Direct Current (HVDC) offshore wind programme of TenneT, the Dutch-German transmission system operator.

The company, in partnership with Hitachi Energy, has been nominated by TenneT to deliver state-of-the-art HVDC converter stations, a key component in integrating large-scale renewable energy from the North Sea into the European power grid.

Commenting on the development, S N Subrahmanyan, Chairman & Managing Director of L&T, said, "This milestone marks a proud moment for L&T as we deepen our engagement in the global clean-energy landscape." He further underscored "the confidence our customers place in L&T's growing capability to execute complex, technology-intensive infrastructure projects."

L&T’s robust quarterly performance was underpinned by a surge in new orders. The company secured orders worth Rs 1,15,784 crore at the Group level during the September quarter, registering a 45 per cent YoY growth.

This momentum lifted the consolidated order book to an all-time high of Rs 6,67,047 crore as of September 30, 2025. International orders remained a key growth driver, accounting for 65 per cent of the total inflow during the quarter.

"The Company has reported a well-rounded financial performance across all parameters," Subrahmanyan said on the Q2 results. "Our ability to repeatedly secure large orders, across segments and geographies, is a true testimony to the Company's leadership position in the EPC domain."

While consolidated performance remained strong, standalone numbers took a hit due to a large exceptional item. L&T reported a standalone net loss of Rs 3,591.17 crore for the quarter, primarily on account of a Rs 5,413 crore impairment charge linked to its equity investment in L&T Metro Rail (Hyderabad) Limited.

The company said it has reached an “in-principle understanding for its divestment to the Government of Telangana at a mutually agreed value.” The move aligns with L&T’s stated strategy to exit its public concessions portfolio and sharpen focus on its core EPC and services businesses.