L&T Technology Services Limited Overview
L&T Technology Services is India's largest listed pure-play engineering research and development (ER&D) services company. It is a majority-owned, listed subsidiary of Larsen & Toubro. LTTS designs, develops, tests and sustains products, software and industrial plants for global manufacturers, technology companies and asset-heavy enterprises. It works through three segments: Mobility (automotive, trucks and off-highway, aerospace and rail), Sustainability (plant engineering and industrial products) and Tech (hi-tech, media, communications, semiconductors and MedTech). FY2026 revenue from continuing operations was US$1,233 million. About 60% comes from North America, and the client base includes 69 Fortune 500 companies and 57 of the top ER&D spenders. Under its five-year "Lakshya 31" plan, LTTS is repositioning from labour-based engineering outsourcing to "Engineering Intelligence" (EI). EI means AI-, data- and platform-led engineering delivered with partners such as Anthropic and Databricks. After selling its low-margin smart-city unit, LTTS targets 13–15% revenue CAGR at 16–17% EBIT margins. It has deep semiconductor-value-chain capability: VLSI design, a Jerusalem centre and Graphene Semiconductor, plus fab-equipment engineering.
The FY2024 billable split is not disclosed in the comparable format, so that cell shows 0. Sources: LTTS Q4 FY24, Q4 FY25, Q4 FY26 and Q2 FY27 investor releases.
What the company does. LTTS sells engineering talent, intellectual property and platforms to companies that design physical and digital products or run industrial plants. Work covers the full product and plant lifecycle:
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concept and architecture
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mechanical, electrical and embedded design
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software development, verification and validation
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testing and certification
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manufacturing-engineering support and sustenance engineering
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for plants: front-end engineering, brownfield modernisation, digital twins, asset-integrity and data-modernisation programmes
Company's own description. LTTS calls itself "a global leader in Engineering Intelligence Solutions & ER&D Consulting Services." It describes itself as a listed subsidiary of L&T offering design, development, testing and sustenance services across products and processes. Its tagline is "Purposeful. Agile. Innovation." and it drives growth across the Mobility, Sustainability and Tech segments. Through FY2026 it described itself as "a global leader in AI, Digital & ER&D Consulting Services." From Q1 FY27 it adopted "Engineering Intelligence Solutions" as the lead descriptor. The change signals that AI-embedded engineering, rather than headcount-based engineering services, is now the primary value proposition.
Independent characterisation. LTTS is a mid-sized, diversified ER&D outsourcer with the following characteristics:
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It is unusually exposed to industrial and process engineering through the Sustainability segment, which was 38.0% of Q2 FY27 revenue. Most Indian ER&D peers are weighted to automotive (KPIT) or media and design (Tata Elxsi).
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Its economics are those of a professional-services firm:
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64.4% time-and-material contracts in Q2 FY27
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a 55.9% offshore revenue share
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gross margins of about 30–32%
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no borrowings
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free cash flow of roughly 100% of net income
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The strategic shift since late 2025 has three parts:
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exiting low-margin India public-sector, smart-city and offshore-support revenue
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selling the SWC unit
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reinvesting in AI platforms and large-deal pursuits The aim is to lift mix toward higher-value, fixed-price and outcome-based engagements.
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Revenue model mix
Time and material (% of revenue): Q2 FY2026: 67.9; Q1 FY2027: 64.9; Q2 FY2027: 64.4
Fixed price (% of revenue): Q2 FY2026: 32.1; Q1 FY2027: 35.1; Q2 FY2027: 35.6
Onsite (% of revenue): Q2 FY2026: 47.9; Q1 FY2027: 46.1; Q2 FY2027: 44.1
Offshore (% of revenue): Q2 FY2026: 52.1; Q1 FY2027: 53.9; Q2 FY2027: 55.9
Source: LTTS Q2 FY27 Investor Release: Licensing and subscription revenue from platforms is not reported separately. Platform-led revenue is captured in "EI-led" revenue, which reached an annualised US$120 million in Q2 FY27, roughly 9–10% of the revenue run-rate.
Value-chain position. LTTS sits between the client's internal R&D organisation and contract manufacturers. It is a Tier-1 engineering partner to OEMs, a design and validation partner to semiconductor and electronics firms, and an owner's-engineer and digital partner to energy, chemicals and industrial operators. It does not manufacture. The former SWC unit, which delivered public-sector command centres and communications infrastructure, was the main exception and has been divested.
Customer types and end-markets
Mobility: Sub-segments / end-markets: Automotive (incl. software-defined vehicles, EV), trucks & off-highway, aerospace & rail; Representative customer types: Global auto OEMs and Tier-1s, agricultural and construction equipment makers, aerospace primes, rail OEMs
Sustainability: Sub-segments / end-markets: Plant engineering (oil & gas, chemicals, energy, FMCG, pharma), industrial products, discrete manufacturing; Representative customer types: Energy majors, petrochemical owner-operators, industrial-equipment makers (incl. semiconductor-equipment suppliers), building-technology firms
Tech: Sub-segments / end-markets: Hi-tech (incl. semiconductors), media & communications, MedTech; Representative customer types: Hyperscalers, semiconductor and electronics firms, telecom equipment vendors, medical-device OEMs
Client metrics (Q2 FY2027, LTM revenue basis)
Active clients: Q2 FY2026: 397; Q1 FY2027: 423; Q2 FY2027: 430
Clients above US$50M: Q2 FY2026: 1; Q1 FY2027: 1; Q2 FY2027: 1
Clients above US$30M: Q2 FY2026: 7; Q1 FY2027: 6; Q2 FY2027: 6
Clients above US$20M: Q2 FY2026: 9; Q1 FY2027: 13; Q2 FY2027: 12
Clients above US$10M: Q2 FY2026: 30; Q1 FY2027: 29; Q2 FY2027: 29
Clients above US$5M: Q2 FY2026: 57; Q1 FY2027: 58; Q2 FY2027: 60
Clients above US$1M: Q2 FY2026: 180; Q1 FY2027: 191; Q2 FY2027: 197
Top 5 clients (% revenue): Q2 FY2026: 16.7; Q1 FY2027: 16.0; Q2 FY2027: 15.7
Top 10 clients (% revenue): Q2 FY2026: 27.3; Q1 FY2027: 26.8; Q2 FY2027: 26.7
Top 20 clients (% revenue): Q2 FY2026: 40.3; Q1 FY2027: 40.7; Q2 FY2027: 41.0
Source: LTTS Q2 FY27 Investor Release.
Strategy
Stated strategy (FY2025-26 Integrated Annual Report and Lakshya 31 investor materials). LTTS presents its direction around five themes.
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Engineering Intelligence (EI): the convergence of engineering with AI and digital technologies. LTTS aims to move from an "AI-enabled engineering services firm" to a "full-stack EI provider" that embeds multimodal, agentic and edge AI across product development, processes and next-generation manufacturing.
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"#1 in areas where we play": depth over breadth.
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Six large technology bets, which include software-defined mobility, plant build-out and modernisation, energy and industrial automation/digital manufacturing, software platforms and AI, and MedTech. Together they are targeted to contribute more than 70% of revenue by FY2031.
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Platform-led, AI-first delivery, to improve revenue quality and productivity.
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Profitable growth over volume, reflected in deliberate exits of non-strategic revenue.
Medium-term targets (Lakshya 31, announced 22 April 2026)
USD revenue CAGR, FY2026–FY2031: Value: 13–15%, largely organic
EBIT margin range: Value: 16–17%
Near-term margin milestone: Value: Mid-16% EBIT on or before Q4 FY2027 (16.3% reached in Q2 FY2027)
Revenue share from six technology bets by FY2031: Value: More than 70%
Payout: Value: About 48% in FY2026
The earlier "US$2 billion medium-term revenue" aspiration, reaffirmed in April 2025, has been superseded by Lakshya 31.
Initiatives in the last 24 months
Intelliswift acquisition: Date: Nov 2024 – Q4 FY25; Type: Capability M&A; Detail: US$110 million; software product, platform, data and AI; hyperscaler access
Plano, Texas design centre: Date: Jun 2025; Type: Footprint; Detail: 350+ planned jobs in AI, digital engineering, cybersecurity and manufacturing
PLxAI launch: Date: Aug 2025; Type: Platform; Detail: AI-led PLM intelligence
SiMa.ai partnership: Date: Sep 2025; Type: Edge-AI alliance; Detail: Embedded and edge AI
MIT Media Lab membership: Date: Sep 2025; Type: Research; Detail: Access to frontier research
Siemens partnership expansion: Date: Sep 2025; Type: Ecosystem; Detail: PLM and digital-industries alliance
Q3 FY26 portfolio restructuring: Date: Jan–Mar 2026; Type: Cost and portfolio; Detail: Exit of about US$19 million annualised low-margin revenue; one-time impact of about US$19 million; restructuring charge ₹273 million net (Q4)
SWC divestment: Date: Mar–Sep 2026; Type: Portfolio; Detail: ₹452.5 crore slump sale; exit from public-sector smart-city work
Lakshya 31 plan: Date: Apr 2026; Type: Strategy; Detail: 5-year targets above
Databricks go-to-market partnership: Date: Jun 2026; Type: Industrial AI; Detail: Anchored in Sustainability; energy, petrochemicals, industrials
Ainfonix 4.0: Date: Jul 2026; Type: Platform; Detail: Process-industries EI
EI OpenHack 2026: Date: Jul 2026; Type: Talent and innovation; Detail: Global hackathon across nine sites in India, the US and Europe
Anthropic partnership: Date: Jul 2026; Type: AI alliance; Detail: Claude across AgenticIQ, PLxAI, Ainfonix, AiNexus and AiTest; Claude Partner Network
Data-centre and AI-infrastructure offering scale-up: Date: FY2027; Type: New business; Detail: Engineering for AI infrastructure build-outs
ESG commitments: Date: Ongoing; Type: Sustainability; Detail: Carbon-neutral and water-neutral by 2030
Products & Services
Engineering Intelligence platforms (cross-segment)
| Offering | Description and capabilities | Target customer | Launch / latest | Notes |
|---|---|---|---|---|
| EIOne | Umbrella Engineering Intelligence platform for AI-native engineering delivery; basis of CoEs such as one for a global automated storage and retrieval provider (Q2 FY27) | Manufacturers, industrial OEMs | 2,026 | Positioned as the organising layer of the Lakshya 31 EI strategy |
| PLxAI | AI-led product-lifecycle and PLM intelligence platform; won the nasscom AI Gamechangers Award 2026 (Manufacturing) | Discrete manufacturers, OEMs | Launched Aug 2025 | Supports LTTS's Leader rating in Everest Group PLM Services PEAK Matrix 2026 |
| AgenticIQ | Agentic-AI framework for engineering workflows; integrates Anthropic's Claude models | Enterprise engineering teams | 2025–26 | Part of the Claude Partner Network integration announced 14 Jul 2026 |
| Ainfonix 4.0 | Engineering Intelligence platform for process industries: turns engineering documents, plant data and asset information into decision-ready intelligence | Oil & gas, chemicals, energy owner-operators | v4.0 launched at "EI Live", early Jul 2026 | Anchors the Databricks industrial-AI partnership |
| AiNexus | AI orchestration and solution-integration platform | Enterprises across segments | 2025–26 | Claude integration |
| AiTest | AI-driven test generation and validation platform | Software, device and embedded clients | 2025–26 | Claude integration |
| AiKno | LTTS's earlier AI/ML platform (computer vision, NLP and analytics accelerators), the base for later EI tooling | Cross-industry | Pre-2023 | Legacy platform underpinning later releases |
Pricing for these platforms is not disclosed. They are sold mostly as accelerators embedded in services contracts, with growing use in outcome-based and fixed-price deals. Annualised EI-led revenue was US$120 million in Q2 FY27.
Mobility
| Offering | Description | Target customer |
|---|---|---|
| Software-defined vehicle (SDV) engineering | Vehicle software architecture, middleware, ECU/zonal software, OTA, connected services; one of the six Lakshya 31 bets | Auto OEMs, Tier-1s (incl. a North American EV maker for exterior and lighting systems, Q1 FY27) |
| EV and powertrain engineering | Electrification, battery-management and e-powertrain design and validation | OEMs, off-highway and recreational-marine makers (Q4 FY26 CoE for a recreational-marine group) |
| Trucks & off-highway engineering | Design, value engineering and embedded software for agricultural, construction and lifting equipment; "Partner-level Supplier" at John Deere's Achieving Excellence Program for the sixth time | Agricultural, construction, material-handling OEMs |
| Aerospace & rail engineering | Avionics, test equipment, structures, air-mobility solutions (Q4 FY26 cargo-logistics air-mobility win), defence engineering (ADE Creative Partnership Award) | Aerospace primes, airlines and logistics firms, defence labs |
| Plant modernisation for auto OEMs | MES deployment and "Connected Virtual Factory" for an automotive OEM (Q4 FY26) | Auto manufacturing plants |
Sustainability
| Offering | Description | Target customer |
|---|---|---|
| Plant engineering & capital projects | Front-end and detailed engineering, brownfield modernisation and project information management (Q2 FY27 South American capital-projects contract); experience across more than 600 major plants | Oil & gas, petrochemicals, FMCG, pharma |
| Digital plant & asset intelligence | Data modernisation, asset integrity, AI-led asset intelligence (multiple energy-major wins in Q4 FY26 and Q2 FY27); Databricks-powered industrial AI | Energy majors and owner-operators |
| Digital Expertise Centres / engineering CoEs | Dedicated captive-style centres, e.g. about 500 engineers for an energy major (Q4 FY26) and a global Engineering CoE for an energy-services provider (Q2 FY27) | Large industrial enterprises |
| Industrial products engineering | New product development, sustenance and value engineering, platform automation; includes the US$100 million semiconductor-equipment programme | Industrial and semiconductor-equipment OEMs |
| Industry 4.0 & robotics | Industry 4.0 frameworks (European food & beverage client), robotics engineering (cleaning-equipment maker) | Discrete and process manufacturers |
| Building and energy technologies | i-BEMS (intelligent building energy management) and IoT platforms such as UBIQWeise | Building-technology and utility clients |
Tech
| Offering | Description | Target customer |
|---|---|---|
| Semiconductor & VLSI services | End-to-end VLSI design, pre- and post-silicon verification, front-end and back-end design, embedded software and production support. Delivered from India, the Jerusalem CoE (1,000+ engineers at peak) and Graphene Semiconductor entities in Singapore, Taiwan and Malaysia. Rated Leader by ISG (Semiconductor and Hi-Tech) and Everest Group (Semiconductor Engineering) | Fabless chip companies, foundries, integrated device makers |
| Software product & platform engineering (Intelliswift) | Software product development, platform engineering, cloud adoption (iCAN, ICAP frameworks), data engineering and AI for hyperscalers and Fortune 500 tech firms | Hyperscalers (four of the top five served at acquisition), retail, fintech, private-equity portfolios |
| Communications & connectivity engineering | Network equipment engineering, field and cellular connectivity testing (Q2 FY27 global technology-leader win), 5-year EI Engineering Centre for a global telecom equipment provider (Q2 FY27) | Telecom equipment makers, device OEMs |
| Media & consumer technology | Media-tech, devices and digital product engineering | Media, consumer-electronics firms |
| MedTech | Medical-device design, verification and validation, regulatory engineering, connected health; MedTech is one of the six Lakshya 31 bets | Medical-device OEMs (softer US demand; traction in Japan and Europe) |
| Data-centre & AI infrastructure engineering | Design and engineering for data-centre and AI infrastructure, scaled in FY27 | Hyperscalers, colocation and power-equipment firms |
Financial Narrative
FY2022 is as reported, before SWC. FY2023 and FY2024 include SWC; FY2023 was restated by the company under common-control accounting, with original revenue of ₹80,136 million. FY2025 and FY2026 are on the continuing-operations basis, excluding SWC; FY2025 was originally reported at ₹106,701 million. FY2026 EBIT and net income exclude net exceptional items: ₹265 million for the new wage code in Q3 and ₹273 million for restructuring in Q4. Sources: Q4 FY22, Q4 FY24, Q4 FY25 and Q4 FY26 investor releases.
Income statement
Revenue in USD (US$ million)
FY2023 USD revenue is as originally reported, before the SWC restatement. FY2022–FY2024 rates are implied by reported INR and USD revenue. Over FY2022–FY2026 revenue CAGR was 13.7% in rupees and 8.8% in US dollars. Most of the gap reflects rupee depreciation and the SWC transfer in and out.
Per-share data (₹)
FY2022 dividends were interims of ₹10 (October 2021) and ₹10 (January 2022) plus a ₹15 final. Payout ratios for FY2022 and FY2023 are not given in the comparable releases, so those cells show 0. FY2027 to date: interim dividend of ₹20, record date 27 October 2026.
Balance sheet
The September 2026 lease and intangibles balances are not broken out in the Q2 investor release, so those cells show 0. Cash plus investments was ₹41,748 million at 30 September 2026. Lease liabilities at 31 March 2026 were ₹4,092 million non-current and ₹1,693 million current. Lease liabilities are in the consolidated statement of assets and liabilities.
Cash flow
H1 FY2027 operating cash flow was ₹8,545 million, capex ₹649 million and FCF ₹7,896 million (108% of net income; ₹4,939 million including discontinued operations). Dividends paid track the payout ratios above. LTTS has never announced a share buyback.
Ratios
ROE is as reported by the company. ROA and asset turnover are calculated on average total assets and are shown from FY2024. With no borrowings, net debt/EBITDA is negative (net cash) and interest coverage is not a meaningful constraint; finance costs relate almost entirely to leases. The current ratio and cash conversion cycle are not reported in the investor releases.
Quarterly trajectory, continuing operations
Q1 FY2026 gross margin is not given in the restated comparatives, so that cell shows 0. Q1 FY2026 net income is derived from the reported 17.4% YoY growth in Q1 FY2027. Reported Q2 FY2027 net income, including the ₹1,650 million SWC gain, was ₹5,482 million.
Commentary on trends, inflections and drivers
Revenue. FY2022 and FY2023 were years of strong post-pandemic ER&D demand: 20.6% and 22.0% INR growth as originally reported, and 15.8% constant-currency USD growth in FY2023. FY2024 growth slowed to 7.0% in constant currency on an SWC-inclusive restated base. FY2025 was weak organically. Automotive and MedTech softened, a large client programme tapered and Intelliswift was added only for the last quarter. On the restated continuing basis FY2025 revenue was essentially flat in rupees. FY2026 recovered to 14.0% INR and 8.3% USD growth, powered by Sustainability large deals and a full year of Intelliswift, with Mobility a drag. Since Q1 FY27 the company has returned to sequential constant-currency growth of 1.5% and then 2.7%.
Margins. The EBIT margin fell for four consecutive years, from 18.3% in FY2022 to 14.5% in FY2026. The causes were:
SWC consolidation: It was a lower-margin systems-integration business.
Investment in sales, technology and solutions: SG&A rose from ₹11,551 million in FY2025 to ₹14,195 million in FY2026.
Intelliswift amortisation: D&A rose to ₹3,452 million.
Revenue softness in high-margin Mobility: The inflection came in Q2 FY2026. EBIT margin then rose for five straight quarters, from 13.7% to 16.3%, through exits of low-margin revenue, a richer Sustainability mix, a rising offshore share (55.9%), more fixed-price work and EI-led productivity. Gross margin reached 32.4% in Q2 FY27, the highest since FY2022.
Net income. Continuing net income grew 7.4% in FY2026 despite the lower EBIT margin, because of lower effective tax and stable other income. Other income has become volatile. FX losses of ₹458 million in Q1 FY27 and ₹311 million in Q2 FY27 on long-term hedges, against a falling rupee, offset rising treasury income of ₹389 million and ₹410 million.
Balance sheet and cash. LTTS is debt-free. Its net cash after lease liabilities rose from ₹22,244 million in FY2024 to ₹29,685 million in FY2026, and cash plus investments reached ₹41,748 million by September 2026 after the SWC proceeds. Goodwill and intangibles more than doubled in FY2025 with Intelliswift. Receivables fell sharply after SWC's India public-sector receivables moved to held-for-sale. That structurally improves working capital, which had stretched while SWC was consolidated.
Returns. ROE fell from 28% in FY2023 to 20.4% in FY2026. The causes were margin compression, a larger equity base and acquired goodwill. With the margin recovery, a cleaner portfolio and payout above 45%, ROE should move back toward the low-to-mid 20s if Lakshya 31 margins are delivered.
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View Subscription PlansFinancial Detail
Segment Revenue
| Segment | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Mobility | 31,643 | 35,098 | 35,077 |
Sustainability | 29,907 | 32,205 | 38,046 |
Tech | 34,923 | 29,119 | 36,946 |
Total | 96,473 | 96,422 | 109,959 |
Segment Revenue — Mobility
| Segment | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
Mobility | 32.8 | 36.4 | 31.9 |
Sustainability | 31.0 | 33.4 | 34.6 |
Tech | 36.2 | 30.2 | 33.6 |
Segment Revenue (Quarterly)
| Segment | Q3 FY2026 | Q4 FY2026 | Q1 FY2027 | Q2 FY2027 |
|---|---|---|---|---|
Mobility | 8,797 | 9,150 | 9,488 | 9,819 |
Sustainability | 9,731 | 10,326 | 10,904 | 11,566 |
Tech | 9,344 | 9,103 | 9,009 | 9,019 |
Segment Revenue (Q1 FY2027 QoQ–Q2 FY2027 YoY)
| Segment | Q1 FY2027 QoQ | Q1 FY2027 YoY | Q2 FY2027 QoQ | Q2 FY2027 YoY |
|---|---|---|---|---|
Mobility | 2.3 | 0.8 | 2.3 | 4.7 |
Sustainability | 4.3 | 11.3 | 4.9 | 13.4 |
Tech | -3.1 | -10.6 | -0.9 | -8.5 |
Financial Analysis
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue | 65,697 | 88,155 | 96,473 | 96,422 | 109,959 |
Gross profit | 21,877 | 26,799 | 28,005 | 29,449 | 33,546 |
EBITDA | 14,149 | 17,610 | 19,190 | 17,897 | 19,350 |
Depreciation and amortisation | 2,144 | 2,338 | 2,716 | 3,031 | 3,452 |
EBIT | 12,005 | 15,272 | 16,474 | 14,866 | 15,898 |
Other income net | 1,087 | 1,588 | 1,564 | 1,528 | 1,571 |
Pre-tax income | 13,092 | 16,860 | 18,038 | 16,394 | 17,469 |
Income tax | 3,486 | 4,696 | 4,975 | 4,494 | 4,632 |
Net income continuing operations | 9,570 | 12,121 | 13,037 | 11,932 | 12,818 |
Net income incl discontinued operations | 9,570 | 12,121 | 13,037 | 12,667 | 12,792 |
Income Statement
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (USD Mn) | 880 | 990 | 1,164 | 1,138.4 | 1,232.6 |
Average USD/INR realised | 74.66 | 80.95 | 82.88 | 84.73 | 89.21 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin | 33.3 | 30.4 | 29.0 | 30.5 | 30.5 |
EBITDA margin | 21.5 | 20.0 | 19.9 | 18.6 | 17.6 |
EBIT margin | 18.3 | 17.3 | 17.1 | 15.4 | 14.5 |
Net margin continuing | 14.6 | 13.7 | 13.5 | 12.4 | 11.7 |
Returns & Leverage Ratios (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
EPS basic | 90.92 | 114.82 | 123.34 | 119.70 | 120.71 |
EPS diluted | 90.74 | 114.48 | 123.00 | 119.44 | 120.53 |
EPS basic continuing | 90.92 | 114.82 | 123.34 | 112.75 | 115.89 |
Dividend per share | 35 | 45 | 50 | 55 | 58 |
Dividend payout ratio (%) | 0 | 0 | 41 | 46 | 48 |
Financial Analysis — Total assets
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets | 60,910 | 81,976 | 84,885 | 96,435 | 104,889 |
Shareholders' funds | 41,762 | 44,349 | 53,271 | 60,800 | 64,727 |
Lease liabilities (only debt-like item) | 4,771 | 4,542 | 6,588 | 5,776 | 5,785 |
Bank borrowings | 0 | 0 | 0 | 0 | 0 |
Financial Analysis (FY2024–FY2026)
| Metric | FY2024 | FY2025 | FY2026 | 30 Sep 2026 |
|---|---|---|---|---|
Cash and cash equivalents | 13,905 | 15,658 | 16,505 | 14,401 |
Investments | 14,927 | 13,096 | 18,965 | 27,347 |
Net cash after lease liabilities | 22,244 | 22,978 | 29,685 | 0 |
Accounts receivable | 28,277 | 29,165 | 23,764 | 21,052 |
Unbilled revenue | 4,280 | 5,953 | 4,997 | 5,931 |
Goodwill and intangibles | 6,248 | 13,667 | 13,917 | 0 |
Assets held for sale (SWC) | 0 | 0 | 9,871 | 0 |
Liabilities linked to assets held for sale | 0 | 0 | 6,641 | 0 |
Shareholders' funds | 53,271 | 60,800 | 64,727 | 70,810 |
Margin Analysis (%) — Operating cash flow
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow | 10,062 | 13,130 | 14,928 | 14,811 | 14,551 |
Capex | 1,555 | 1,787 | 2,419 | 1,018 | 1,749 |
Free cash flow | 8,507 | 11,343 | 12,509 | 13,793 | 12,802 |
FCF to net income (%) | 89 | 94 | 96 | 109 | 100 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE (%) | 25 | 28 | 27 | 22 | 20.4 |
ROA (%) | 0 | 0 | 15.6 | 14.0 | 12.7 |
Asset turnover (x) | 0 | 0 | 1.16 | 1.06 | 1.09 |
Lease liabilities to equity (x) | 0.11 | 0.10 | 0.12 | 0.09 | 0.09 |
FCF margin (%) | 12.9 | 12.9 | 13.0 | 14.3 | 11.6 |
Income Statement and Margin Analysis (%)
| Metric | Q1 FY2026 | Q2 FY2026 | Q3 FY2026 | Q4 FY2026 | Q1 FY2027 | Q2 FY2027 |
|---|---|---|---|---|---|---|
Revenue (INR Mn) | 26,375 | 27,133 | 27,872 | 28,579 | 29,401 | 30,404 |
Revenue (USD Mn) | 308.7 | 306.9 | 311.1 | 305.9 | 309.9 | 317.1 |
EBITDA (INR Mn) | 4,407 | 4,744 | 4,985 | 5,214 | 5,483 | 5,858 |
EBIT (INR Mn) | 3,601 | 3,824 | 4,124 | 4,349 | 4,613 | 4,966 |
EBIT margin (%) | 13.7 | 14.1 | 14.8 | 15.2 | 15.7 | 16.3 |
Gross margin (%) | 0 | 29.8 | 30.7 | 32.2 | 31.7 | 32.4 |
Net income continuing (INR Mn) | 2,997 | 3,172 | 3,183 | 3,467 | 3,518 | 3,796 |
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View Subscription PlansGeographic Revenue
| Region | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
North America | 640.2 | 656.9 | 735.9 |
Europe | 185.1 | 223.1 | 229.3 |
India | 254.9 | 166.2 | 171.3 |
Rest of World | 83.8 | 91.1 | 96.1 |
Geographic Revenue — North America
| Region | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
North America | 55.0 | 57.7 | 59.7 |
Europe | 15.9 | 19.6 | 18.6 |
India | 21.9 | 14.6 | 13.9 |
Rest of World | 7.2 | 8.0 | 7.8 |
Geographic Revenue (Quarterly)
| Region | FY2026 | Q1 FY2027 | Q2 FY2027 |
|---|---|---|---|
North America | 12.0 | 3.3 | 4.4 |
Europe | 2.8 | -3.0 | -3.9 |
India | 3.1 | -7.5 | 0.6 |
Rest of World | 5.5 | 1.1 | 18.3 |
Geographic Revenue (Q2 FY2026–Q2 FY2027)
| Region | Q2 FY2026 | Q1 FY2027 | Q2 FY2027 |
|---|---|---|---|
North America | 60.0 | 60.4 | 60.7 |
Europe | 19.0 | 18.0 | 17.7 |
India | 13.8 | 13.2 | 13.4 |
Rest of World | 7.2 | 8.4 | 8.2 |
Valuation Snapshot
| Metric | Value |
|---|---|
Price, 28 Oct 2026 | ₹4,088.1 |
Close before Q2 results (19 Oct 2026) | ₹3,611.3 |
Intraday high after results (21 Oct 2026) | ₹4,143 |
52-week range | ₹3,010 – ₹4,747 |
1-year return to 13 Jul 2026 | -26.0% |
3-year annualised return to 13 Jul 2026 | -6.2% |
5-year annualised return to 13 Jul 2026 | 2.0% |
All-time high (historical) | ₹5,990 |
Valuation Multiples
| Multiple | LTTS |
|---|---|
P/E (TTM continuing EPS ₹126.63) | 32.3x |
EV/EBITDA (TTM EBITDA ₹21,540 million) | 18.5x |
EV/Sales (TTM revenue ₹116,256 million) | 3.4x |
P/B (equity ₹70,810 million) | 6.1x |
Dividend yield (FY26 ₹58) | 1.4% |
Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Dividend per share (INR) | 35 | 45 | 50 | 55 | 58 |
Analyst Conclusions
Management guidance.
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No formal annual revenue guidance is given for FY2027.
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Management expects "revenue momentum to strengthen further in H2 while sustaining healthy EBIT margins".
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The mid-16% EBIT target for Q4 FY27 was reached in Q2 FY27.
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Lakshya 31 aspirations: 13–15% USD revenue CAGR and 16–17% EBIT margin over FY2026–FY2031.
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Brokerage forecasts cluster around about 5% constant-currency growth for FY27 and EBIT margins of 15.5–15.9%. Q2 FY27 delivery is ahead of the margin assumptions.
Bull case
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The margin inflection is structural. Five straight quarters of EBIT expansion to 16.3% came from mix (Sustainability at 38%), offshoring (55.9%) and fixed-price growth (35.6%), not one-offs. That supports 16–17% and sustained double-digit EPS growth.
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Deals precede revenue. Annual large-deal TCV of about US$850 million, more than 50% of it AI-led in Q2 FY27, plus 430 active clients and growth in US$1 million+ accounts (197), set up the H2 FY27 acceleration management has flagged.
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Optionality on the balance sheet. More than ₹41,700 million of liquidity, no debt and a 48% payout leave room for EI-focused acquisitions or higher shareholder returns.
Bear case
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Growth is still modest. Q2 FY27 USD revenue grew only 4.8% YoY in constant currency, well short of the 13–15% CAGR aspiration, which looks back-end loaded.
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AI deflation could outrun EI monetisation. EI-led revenue of US$120 million is small against a US$1.27 billion run-rate, while 64% of revenue remains time-and-material and exposed to productivity pass-through.
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Tech and Europe drag. Tech fell 8.5% YoY and Europe 3.9%, and a 32x trailing P/E leaves little room for execution slips.
Key catalysts and monitorables (next 12 months)
Q3 FY27 results: Timing: Mid-January 2027; What to watch: Sequential CC growth of 2% or more; EBIT at or above 16% through wage-hike quarters
Q4 FY27 results and FY28 commentary: Timing: April 2027; What to watch: First Lakshya 31 year-end scorecard; FY28 growth framing; final dividend
Large-deal TCV: Timing: Quarterly; What to watch: Holding around US$200 million per quarter; AI-led share above 50%
Mobility recovery: Timing: H2 FY27; What to watch: North American SDV ramp; Europe stabilisation
Tech segment trough: Timing: H2 FY27; What to watch: Return to YoY growth; segment margin toward 12–13% EBITDA
EI-led revenue: Timing: Half-yearly; What to watch: Growth from US$120 million annualised; Anthropic and Databricks pipeline
Capital allocation: Timing: Ongoing; What to watch: Use of SWC proceeds; M&A; payout trajectory
FX and hedges: Timing: Quarterly; What to watch: Other income volatility
Analyst verdict. LTTS enters the second half of FY2027 having done the hard part of its turnaround. It has sold SWC, exited low-margin revenue and rebuilt operating profitability. The EBIT margin has risen 260 bps in five quarters to 16.3%, gross margin is at a four-year high of 32.4%, and cash generation remains close to 100% of earnings with no debt. Its strategic identity is clearer: a full-stack Engineering Intelligence provider anchored in industrial and process engineering, semiconductors and software-defined mobility, a mix that differentiates it from automotive-centric and media-centric Indian peers. Partnerships with Anthropic and Databricks, its proprietary platforms (EIOne, PLxAI, Ainfonix 4.0) and a deal engine producing about US$200 million of TCV a quarter make the Lakshya 31 narrative credible, not just aspirational.
Growth is now the open question. Constant-currency USD growth is still mid-single-digit, Tech is shrinking, and Europe is contracting. The five-year 13–15% CAGR therefore needs a sharp H2 FY27 acceleration and sustained conversion of large deals. The structural question for the whole ER&D industry, whether AI compresses billable engineering effort faster than providers can monetise platforms and outcomes, applies directly to LTTS's 64% time-and-material book.
At about 32x trailing earnings and 18.5x EV/EBITDA, the market is already pricing in margin delivery and part of the growth recovery. The balance of risks favours a constructive but selective stance. The quality of the franchise, the clean balance sheet and visible margin execution justify a premium. Further re-rating depends on two or three quarters of sequential constant-currency growth above 2%, Tech stabilising, and evidence that EI revenue is compounding. Investors should treat LTTS as a margin-led compounder in transition. The Q3 and Q4 FY27 prints will show whether the transition is complete.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | In role since | Prior roles | Education | FY2026 remuneration |
|---|---|---|---|---|---|
Amit Chadha | CEO & Managing Director | 1 Apr 2021 (joined 2009) | Deputy CEO & Whole-Time Director (2020); President, Sales & Business Development; Business Head, Americas; roles at L&T Integrated Engineering Services and Tech Mahindra | B.E. Electrical & Electronics, BIT Mesra; Advanced Management Program, INSEAD; Harvard Business School Publishing Global Business Leadership programme | ₹149.6 million total: salary ₹57.7 million, commission ₹26.2 million, variable pay ₹16.8 million, ESOP perquisites ₹48.8 million. Down 17.4% YoY; 147.63× median employee pay. Paid in US dollars |
Rajeev Gupta | Executive Director & CFO | CFO since 2020; Executive Director from 22 Apr 2026 (3-year term) | CFO, Birlasoft (acquisition and merger/demerger integration); replaced P. Ramakrishnan | Chartered Accountant | ₹38.3 million (down 3.6% YoY) |
Alind Saxena | Executive Director & President, Strategic Initiatives and Growth Markets | Whole-Time Director since 26 Apr 2023; re-appointed 26 Apr 2026 to 25 Apr 2029 | Earlier President, Mobility & Tech | As disclosed in the annual report | Disclosed in the FY2026 Rule 5 annexure |
Mritunjay Kumar Singh | Chief Operating Officer | 14 Nov 2025 | 32+ years at Tata Steel, Kanbay, Infosys, Persistent Systems, Axiscades | — | Senior management personnel |
Prasad Shanbhag | Company Secretary & Compliance Officer | 1 May 2024 | Succeeded Prajakta Powle | Chartered Accountant, Company Secretary and Cost Accountant | Disclosed in the FY2026 annual report |
T. Shivram | Chief Human Resources Officer | 1 Aug 2025 (deputed from L&T) | 28+ years in HR | PGDPMIR, XLRI Jamshedpur | — |
Atul Kapur | Chief Segment Officer, Media & Technology | Senior management from 17 Oct 2025 | About 30 years in strategy and P&L leadership | — | — |
Aditya P. Pathak | Chief Segment Officer, Mobility | Senior management from 17 Oct 2025 | Patent holder; long engineering career | — | — |
Rupam Chaudhury | Senior Management Personnel | 17 Oct 2025 | — | — | — |
Board of Directors
| Director | Category | Board / committee roles | Date of birth / age | Notes |
|---|---|---|---|---|
S.N. Subrahmanyan | Non-Executive Chairman (promoter nominee) | Chairman since 27 Jun 2024 | — | Chairman & MD of Larsen & Toubro |
Amit Chadha | CEO & MD | Risk Management Committee | — | See above |
Rajeev Gupta | Executive Director & CFO | Risk Management Committee | — | Board seat from 22 Apr 2026 |
Alind Saxena | Executive Director | — | — | Re-appointed April 2026 |
Narayanan Kumar | Independent | Audit Committee; formerly NRC Chair | 28 Jan 1950 (76) | Re-appointed for a further term |
Apurva Purohit | Independent | Audit Committee; Stakeholders Relationship Committee Chair; NRC member | 3 Oct 1966 (60) | Re-appointed from 11 Dec 2024; also on the boards of LTIMindtree, Navin Fluorine and Marico |
Chandrasekaran Ramakrishnan | Independent | Risk Management Committee Chair | 2 Oct 1957 (69) | B.E. (Hons) REC Trichy; MBA IIM Bangalore; former NASSCOM leader |
Luis Miranda | Independent | Audit Committee Chair | 21 Sep 1961 (65) | Appointed 19 Oct 2021 |
Aruna Sundararajan | Independent | NRC; Risk Management Committee | — | Appointed 26 Apr 2023 (to 25 Apr 2028); former Telecom Secretary; boards include Truecaller AB and Zetwerk |
Amitabh Kant | Independent | — | — | Appointed 22 Apr 2026 for 5 years; former NITI Aayog CEO and G20 Sherpa |
Sumithra Gomatam | Independent | — | — | Appointed 9 May 2026 for 5 years; IT/BPO operating experience |
Major Shareholders
| Holder category | % of share capital |
|---|---|
Larsen & Toubro Limited (promoter) | 73.57 |
Insurance companies | 9.67 |
Mutual funds (26 schemes) | 4.32 |
Foreign portfolio investors (171) | 3.86 |
Other domestic institutions | 0.65 |
Non-institutional (retail, corporates, others) | 7.93 |
Total | 100.00 |
Competitive Landscape
Key Competitors
| Competitor | Type | Overlap with LTTS |
|---|---|---|
KPIT Technologies | Indian pure-play | Mobility (SDV, automotive software) |
Tata Elxsi | Indian pure-play | Mobility (transportation), media & communications, healthcare |
Cyient (DET segment) | Indian engineering services | Aerospace & rail, communications, plant/utilities, semiconductors |
Tata Technologies | Indian pure-play | Automotive and aerospace engineering, digital manufacturing |
HCLTech (ERS) | Indian IT major | Hi-tech, semiconductor, MedTech, industrial |
Wipro (Engineering) | Indian IT major | Semiconductors (VLSI), industrial, automotive |
Tech Mahindra (engineering) | Indian IT major | Communications, automotive, aerospace |
Infosys (Engineering Services) and TCS (ER&D) | Indian IT majors | Cross-segment large deals |
Capgemini Engineering | Global | Cross-segment; largest global ER&D outsourcer |
Akkodis and Alten | European | Automotive, aerospace, rail, energy |
Quest Global | Private, global | Aerospace, energy, MedTech, semiconductors |
GlobalLogic (Hitachi) and EPAM | Digital product engineering | Software product engineering (Intelliswift overlap) |
Accenture (Industry X) | Global consulting | Digital manufacturing, plant engineering |
Peer Comparison FY2026
| Company | FY2026 revenue | USD revenue | Revenue growth | Profitability (reported metric) |
|---|---|---|---|---|
L&T Technology Services | ₹109,959 million | US$1,233 million | 8.3% (USD) | EBITDA 17.6%; EBIT 14.5% |
KPIT Technologies | — | US$724.8 million | 4.8% (USD) | EBITDA 20.8% |
Tata Elxsi | ₹37,574 million | About US$421 million | 0.8% (INR) | PAT ₹6,284 million (16.7% net) |
Cyient (DET segment) | ₹58,190 million | US$657.6 million | 5.5% (INR) | DET EBIT 12.2% |
