L&T Technology Services (LTTS) reported revenue of $326 Mn, a 4.6% annual growth. Q3 EBIT margins improved to 14.6%. The company secured large deals worth $180 Mn. While Mobility showed improvement, Sustainability grew by 11.4% YoY. Looking forward, LTTS is guiding for mid-single digit overall growth in FY26, with double-digit growth expected in focused business areas. They are aiming for mid-16% EBIT margins between Q4 FY27 and Q1 FY28.
Financial Performance
In Q3 FY26, L&T Technology Services (LTTS) reported a revenue of $326 Mn, representing a 4.6% year-over-year growth, but a sequential decrease of 3.2% due to portfolio rebalancing. The company’s EBIT margins improved by 120 bps sequentially, reaching 14.6%. The effective tax rate for Q3 was 26%, with expectations to remain between 26.5%-27.0% for the full year. Net income came in at ₹329.1 crores, representing 11.3% of revenue.
Segmental Highlights
The Sustainability segment exhibited strong performance, growing by 11.4% year-over-year and quarterly. Mobility showed signs of improvement despite a seasonally weak quarter. The Tech segment saw margin improvements of 160 bps sequentially. 50% of the large deal wins in Q3 were in the Mobility segment.
Strategic Developments
LTTS is focusing on Engineering Intelligence (EI) solutions. The company is re-evaluating its regional focus and offerings to align with its five-year Lakshya roadmap. They filed 229 patents in AI & GenAI. 30% of the workforce is trained in AI. The company anticipates increased demand in new-age technology areas. There was a 200 bps increase in gross margin sequentially due to revenue quality and operational efficiencies.
Deal Wins and Pipeline
The company secured large deal wins with a total contract value (TCV) of $180 Mn in the quarter. They are seeing an average TCV of $200 Mn for the last five consecutive quarters. LTTS is expanding partnerships with global energy companies and focusing on re-industrialization opportunities in the US.
Outlook and Guidance
LTTS is guiding for mid-single-digit overall growth in FY26. They expect double-digit growth in focused business areas. Capital allocation is shifting towards high-margin segments such as Sustainability and Mobility. The company aims to reach mid-16% EBIT margins between Q4 FY27 and Q1 FY28. They expect margins to improve based on capital allocation, portfolio choices, and operational efficiencies, including AI-led delivery.
Source: BSE
