L&T Technology Services Kicks Off FY27 with Strong Double-Digit Growth as Net Profit Touches ₹3,571 Million

Engineering services major L&T Technology Services Limited (LTTS) today announced its consolidated unaudited financial results for the first quarter of the fiscal year 2026-27, ended June 30, 2026. The company reported a robust financial performance to start the new fiscal year, showcasing strong double-digit growth in both its operational revenue and core net profit on a year-on-year basis, driven primarily by strong demand across its Sustainability and Mobility verticals.

Consistent Revenue Growth Led by Core Segments

L&T Technology Services recorded a consolidated revenue from operations of ₹29,401 million for Q1 FY27. This marks a solid 11.47% growth year-on-year compared to the ₹26,375 million reported in the corresponding quarter of the previous fiscal year, Q1 FY26. Sequentially, revenue expanded by 2.88% over the ₹28,579 million logged in the immediate preceding March 2026 quarter. Including a net other income of ₹291 million, the total income accumulated by the engineering services provider for the current quarter stood at ₹29,692 million.

A breakdown of the company's operating segments highlights healthy structural demand:

Sustainability: The segment remained the largest revenue and profit driver, bringing in ₹10,904 million in revenue during the quarter, up significantly from ₹8,818 million in the parallel year-ago period. It delivered a segment result of ₹3,178 million.

Mobility: This engine showcased robust momentum, generating ₹9,488 million in revenue for the quarter compared to ₹8,479 million in Q1 FY26, yielding a segment profit result of ₹1,481 million.

Tech: The vertical recorded stable revenue of ₹9,009 million against ₹9,078 million in the parallel year-ago quarter, contributing ₹1,036 million to the segment results.

Cost Architecture and Operating Efficiencies

Total expenses for the quarter rose to ₹24,932 million, moving in tandem with the expanded execution scale from ₹22,938 million in the parallel year-ago period. Employee benefits remained the most significant cost component, accounting for ₹17,131 million during the three-month period, up from ₹15,662 million in Q1 FY26. Other operational overhead expenses stood at ₹6,787 million, while non-cash depreciation and amortization expenses were reported at ₹870 million. Finance costs dropped down sequentially to ₹144 million.

Driven by strong growth in the top-line outperforming expense expansions, the profit before exceptional items and tax from continuing operations landed at ₹4,760 million, marking an increase over the ₹4,107 million recorded in the same period last fiscal year. With no exceptional adjustments during the quarter, the pre-tax profit from continuing operations finalized at ₹4,760 million.

Net Profit Surges Past ₹3,500 Million

After accounting for a total tax outgo of ₹1,237 million from its continuing operations-comprising a current tax expense of ₹1,226 million and a deferred tax provision of ₹11 million-the net profit from continuing operations stood at ₹3,523 million.

The company also recognized earnings from its discontinued operations, which brought in a pre-tax profit of ₹65 million. Following a tax expense of ₹17 million on this block, the net profit from discontinued business streams added ₹48 million to the bottom line.

Consequently, L&T Technology Services locked in a total consolidated net profit for the period of ₹3,571 million. This delivers a strong 12.97% growth year-on-year compared to the net profit of ₹3,161 million posted in the same quarter last year, and a 7.33% sequential expansion over the ₹3,327 million registered in Q4 FY26. Net profit attributable directly to the equity shareholders of the company stood at ₹3,566 million, while non-controlling interests accounted for ₹5 million.

A substantial positive movement in foreign operations translation adjustments boosted items that will be reclassified to the profit and loss account, adding ₹1,025 million. Total other comprehensive income net of tax finished at ₹1,070 million, driving the ultimate total comprehensive income for the period to a high of ₹4,641 million.

Strong Per-Share Yields and Capital Base

Reflecting the expanded profitability run rate, the company's returns per share experienced notable parallel gains. For combined continuing and discontinued operations, basic earnings per share (EPS) climbed to ₹33.62 on a face value of ₹2 per share, up from ₹29.81 in the year-ago first quarter. Diluted EPS for the same combined basis advanced to ₹33.59.

The underlying capital foundation of the group remained highly robust. The paid-up equity share capital was steady at ₹212 million, while the company's accumulated other equity reserves-excluding revaluation allocations-remained substantial at ₹64,515 million at the close of the prior full financial year baseline.

LTTS' large deal momentum continues to be strong with one USD 30+ Mn win, one USD 20+ Mn win, and four deals above USD 10 Mn.

"The strategic actions undertaken as part of our Lakshya 31 agenda are beginning to translate into tangible business outcomes, reflected in healthy quarterly growth and sustained margin improvement. Q1 revenue grew 11.5% YoY in rupee terms and EBIT margins improved 200 bps YoY to 15.7%.

Our diversified portfolio continues to demonstrate resilience, with the Sustainability segment maintaining doubledigit annual growth and the Mobility segment returning to growth during the quarter despite a dynamic market environment. Our Engineering Intelligence solutions are driving larger deal opportunities and deeper client engagements by embedding AI across products, workflows, systems and manufacturing processes.

We have partnered with Anthropic to leverage Claude and LTTS' AI-powered Engineering Intelligence for products, services and industrial solutions. Through our consultative engagements, we are helping clients assess their AI maturity and shape future AI roadmap, supported by an AI Readiness Index developed by MIT Media Lab. Our innovation engine also continued to gather momentum, with AI patent filings increasing to 244 and our overall patent portfolio surpassing 1,757.

With a strong foundation established under Lakshya 31 five-year plan and continued investments across our Six Technology Bets, we remain confident in our ability to deliver sustainable, profitable growth. Our aspiration of achieving 13-15% CAGR over the next five years reflects both the strength of our strategy and the confidence we have in our execution," said Amit Chadha, CEO & Managing Director, L&T Technology Services Limited.

Shares of L&T Technology Services Limited was last trading in BSE at Rs. 3291.40 as compared to the previous close of Rs. 3296.35. The total number of shares traded during the day was 8784 in over 884 trades.

The stock hit an intraday high of Rs. 3359.40 and intraday low of 3267.00. The net turnover during the day was Rs. 29014871.00.

Source : Equity Bulls

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LandTTechnologyServices INE010V01017 LTTS Q1FY27 Q1FY2027 ResultUpdate