L&T Technology Services (LTTS) announced the sale of its Smart World and Communication (SWC) Business Unit through a Slump Sale to AMI Paradigm Solutions Private Limited (Buyer). The transaction, valued at ₹452 crore, is based on a Business Transfer Agreement (BTA) signed on March 25, 2026. The SWC Unit, which focuses on safe and smart segments, contributed 9.63% of LTTS’s revenue in FY 2024-25. Closing is targeted for September 30, 2026.
Strategic Divestiture of SWC Unit
L&T Technology Services Limited (LTTS) confirmed on March 25, 2026, that it has entered into a Business Transfer Agreement (BTA) to execute a Slump Sale of its Smart World and Communication Business Unit (SWC Unit). The divestiture targets the safe and smart segment and the communication segment of the business.
Transaction Details and Counterparty
The transaction is with AMI Paradigm Solutions Private Limited, referred to as the “Buyer.” The Buyer is a Special Purpose Entity established by ParadigmIT Technology Services Private Limited, promoted by Mr. Sridhar Gadhi. Furthermore, the structure involves a joint venture between ParadigmIT and AM Intelligence Labs Private Limited (promoted by the founders of the Greenko Group).
The consideration for the sale is fixed at ₹452 crore, subject to adjustments for working capital and net debt as outlined in the BTA.
Rationale for the Sale
LTTS is strategically doubling down its focus across manufacturing, industrial, and technology-led Enterprise sectors. The company is pivoting toward Engineering Intelligence (EI) as a core part of its next five-year roadmap. The sale allows LTTS to sharpen its focus and investments on its six large technology bets, enabling the Company to maintain its leadership position amid accelerating technological disruptions.
Financial Metrics of the Divested Unit
The financial performance metrics for the SWC Unit during the financial year ended March 31, 2025, highlight the unit’s scale:
- Revenue: ₹1,027.95 crore, constituting 9.63% of LTTS’s consolidated revenue.
- Net Worth: ₹445.89 crore, which represents 7.31% of LTTS’s total net worth as of March 31, 2025.
For context, LTTS’s total consolidated revenue for the same period was ₹10,670.10 crore.
Transaction Timeline and Compliance
The BTA execution date was March 25, 2026. The expected closing date for the disposal is scheduled for on or before September 30, 2026, contingent upon satisfying specific conditions precedent identified in the agreement.
The transaction is structured as a Cash consideration sale. Importantly, the disclosure confirms that this transaction is not a related party transaction and falls outside the existing Scheme of Arrangement. Given the relevant financial parameters based on the last audited statements (FY ended March 31, 2025), the sale does not qualify for the application of Regulation 37A of the Listing Regulations concerning undertakings.
Source: BSE
