L&T Tech Services shares surge 15% after Q2 2026 results - Should investors buy, sell, or hold stock? Experts suggestion

Dollar revenue increased by 2.7% QoQ and 4.8% YoY in constant currency (CC) terms to $317 million for the quarter. The company's net income for the quarter rose by 53.7% QoQ and 66.8% YoY to ₹548.2 crore, including one-time gain of ₹165 crore from the disinvestment of the SWC business. EBIT margin improved by 60 bps QoQ to 16.3%. Moreover, the comapny also Iannounced an interim dividend of ₹20 per share, with a record date of 27 October 2026.

Should investors buy, sell, or hold the stock? L&T Technology Services' Q2 results were better-than-expected which prompted positive reviews by some of the top domestic brokerage firms. Brokerage firm JM Financial maintained an "add" call on the stock after the Q2 results but raised the target price to ₹3,890 from ₹3,575 earlier. "L&T Technology Services reported a strong Q2FY27 with revenue and margins beating estimates.

Forward-looking indicators includes large-deal TCV stood at $203 million, higher sequentially (nearly $100 million in Q1FY27), while the deal pipeline increased more than 25% YoY," JM Financial noted. "Management expects growth in the second half of the financial year (H2FY27) to exceed the first half on both QoQ and YoY basis, aided by conversion of earlier large-deal wins and a stronger backlog, notwithstanding normal Q3 furloughs," said JM Financial.

JM Financial expects tech to remain muted in Q3 before recovering from Q4, while European auto is expected to stabilise over 9–12 months. "Management aims to sustain mid-16% EBIT margin despite the Q3 wage-hike headwind (50– 80bps). EI-led revenue reached an annualised USD 120mn (nearly 9.5% of Q2 revenue) with much of the recently won AI-led TCV yet to ramp up. We revise FY28–29E EPS by 5%," said the brokerage firm.

Emkay Global Financial Services has also maintained an "add" view on the stock and raised the target price by nearly 3% to ₹3,900 from ₹3,800, at 22 times September 2028E EPS. Emkay underscored that the company's management expects revenue growth to accelerate in the second half, driven by healthy deal wins and strong pipeline, steady demand, and continued strong execution, driving better revenue conversion while sustaining EBITM of 16–17%.

"We raise FY27E EPS by nearly 11% and FY28E/29E EPS by nearly 1%, considering the Q2 performance," said Emkay. Anand Rathi Share and Stock Brokers has upgraded the stock to a "buy", with a target price of ₹4,336, citing stronger deal conversion, widening AI opportunities and improving margin resilience provide greater confidence in the company's growth trajectory, although recovery remains uneven across segments.

On the technical front, the stock has witnessed a bullish breakout from a symmetric triangle pattern on the daily chart. Vipin Kumar, AVP-Research at Globe Capital Market, said that traders should maintain a "buy on dips" trading approach for the stock as long as it is trading above the ₹3,700- ₹3,650 spot zone on a closing basis, as it has the potential to test ₹4,450 followed by ₹4,600 spot levels in the near term.

Any dip towards the ₹3,880- ₹3,800 spot zone should be taken as a fresh buying opportunity, said Kumar. Aditya Thukral, founder and analyst at AT Research and Risk Managers, pointed out that L&T Technology Services has marked a reversal from the downtrend with the break of the lower high of ₹3,708. It also exhibited a symmetrical triangle pattern, which has a potential target of ₹4,400. Thukral said that the stock is rallying one way, and immediately entering this rally doesn’t seem to be a wise choice considering the risk-reward from current levels.However, he added that if the stock retraces towards the fresh support range of ₹3,700 to ₹3,800, a bet on buying can be taken on the stock price."The stock is now sustaining above all the major EMA’s with positive crossovers between some of them, and this is a positive sign.

The trend has clearly changed upwards for the stock price. An uptrend in stock prices is clearly imminent, and fresh buying entries could be taken near the fresh support zone of ₹3,700 to ₹3,800 with the stop loss of ₹3,580 (being the higher low of he current rally), targeting the ₹4,400 price level," said Thukral.Read all market-related news hereRead more stories by Nishant KumarDisclaimer: This article is for educational purposes only and does not constitute investment advice.

The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.