L&T Technology Services (LTTS) reported strong Q2 FY26 results, achieving a record $292 million in large deal TCV. Revenue grew by 1.3% sequentially and 10.4% annually in USD CC terms. The Sustainability segment achieved double-digit annual growth. The company expects both revenue and EBIT margins to improve in the second half of the fiscal year, with H2 growth surpassing H1.
Key Financial Highlights
L&T Technology Services (LTTS) announced a robust performance for Q2 FY26, marked by significant deal wins and steady growth. Key highlights include:
- Revenue in USD CC terms grew by 1.3% sequentially and 10.4% annually.
- EBIT margins stood at 13.4% for the quarter.
- Record high large deal TCV of $292 million, including a $100 million and a $60 million deal.
- Anticipated improvement in both revenue and EBIT margins in the second half of FY26.
Segment Performance
The company provided updates on the performance of its various segments:
Mobility
The Mobility segment experienced sequential growth in the Trucks & Off Highways sub-segment, while Aerospace & Rail remained resilient. The Auto sub-segment was subdued. The company anticipates a cyclical impact in the coming quarter due to furloughs but expects a comeback in Q4 FY26.
Sustainability
The Sustainability segment continued its strong performance, delivering 3.0% sequential and 12.6% annual growth. LTTS achieved a $50 million+ account on an annualized run-rate basis in the Plant Engineering sub-segment and closed its largest-ever deal of $100 million in the Industrial subsegment.
Tech
The Tech segment grew 28.6% annually, including the benefits of Intelliswift revenue. The company secured a significant deal with a US-based telecom infra major. MedTech saw healthy demand from Europe and Japan. LTTS anticipates growth in MedTech in the second half of the year, leveraging AI solutions.
Technology and Innovation
LTTS highlighted its focus on technology and innovation, particularly in AI:
- Filed 216 patents in AI & GenAI, exceeding 1,600 overall.
- Launched an AI-first delivery model.
- Scaled AI portfolio with platforms like Qguard.ai, FusionWorld.ai, and PLxAI.
Outlook and Strategy
LTTS aims for double-digit growth in FY26 and reiterates its medium-term outlook of $2 billion in revenue. The company emphasized its readiness to build for the next level of growth, pivoting to an AI-first delivery model, strengthening leadership, and focusing on profitable and sustainable growth.
Financial Metrics
- Revenue for the quarter was ₹2,980 crores, up 15.8% YoY and 4.0% sequentially.
- EBIT margin was 13.4%.
- Effective Tax Rate (ETR) for Q2 was 26.5%.
- Net Income for the quarter was ₹328.7 crores, up 4.1% sequentially.
Source: BSE
