Quarterly Financial Results
L&T Technology Services Reports 11.5% YoY Revenue Growth in Q1 FY27; Net Profit Rises 17.4%Â
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L&T Technology Services (LTTS) reported a strong start to FY27 with 11.5% YoY revenue growth, 17.4% YoY growth in net profit, and 200 basis points expansion in EBIT margin. The company also maintained robust deal momentum with six large deal wins, strengthened its AI capabilities through partnerships with Anthropic and Databricks, and reiterated its long-term Lakshya 31 growth strategy targeting 13–15% CAGR with 16–17% EBIT margins over the next five years.
PRICE-SENSITIVE TRIGGER
Event: Announcement of Q1 FY27 Financial Results.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect:Â The company delivered double-digit revenue growth, improved profitability, expanding margins, healthy large-deal wins, and continued investment in AI-led engineering solutions.Â
Financials:
Metrics:
- Revenue: ₹2,940.1 Cr (↑11.5% YoY | ↑2.9% QoQ)
- USD Revenue: US$310 Mn (↑1.5% QoQ CC | ↑1.9% YoY CC)
- EBIT: ₹461.3 Cr
- EBIT Margin:Â 15.7%Â (+50 bps QoQ | +200 bps YoY)
- Net Profit (Continuing Operations): ₹351.8 Cr (↑17.4% YoY | ↑1.5% QoQ)
- Net Profit Margin:Â 12.0%
- EPS (Continuing Operations):
- Basic: ₹33.17
- Diluted: ₹33.14
Highlight:
- Revenue crossed ₹2,900 crore for the quarter.
- EBITDA increased 24.4% YoY to ₹548.3 crore.
- Gross profit rose 21.1% YoY.
- EBIT margin expanded significantly despite a dynamic macro environment.
- Free Cash Flow stood at ₹539.6 crore, with 153% Free Cash Flow-to-Net Income conversion.Â
What Happened ?
LTTS reported a healthy quarter supported by improved execution under its Lakshya 31 strategy. Revenue growth was driven by resilient performance across engineering services, particularly the Sustainability business, while the Mobilitysegment returned to growth.
The company continued to benefit from strong client demand, AI-led engineering engagements, and a healthy large-deal pipeline. During the quarter, LTTS also strengthened its Engineering Intelligence ecosystem through strategic partnerships and innovation initiatives.Â
key details
Financial Performance:
- Revenue
- ₹2,940.1 Cr
- 11.5% YoY growth
- 2.9% QoQ growth
- Profitability
- EBIT Margin improved to 15.7%
- Net Profit increased to ₹351.8 Cr
- Net Profit grew 17.4% YoY
- Cash Generation
- Operating Cash Flow: ₹574.7 Cr
- Free Cash Flow: ₹539.6 Cr
- Capex remained modest at ₹35.1 Cr.
Operational Highlights:
- Large Deal Momentum
- 1 deal above US$30 million
- 1 deal above US$20 million
- 4 deals above US$10 million
- Major customer wins included projects involving:
- Emerson (Global Systems Engineering)
- North American EV manufacturer
- Global industrial engineering company
- Medical technology leader
- Aerospace technology provider
- Major industrial development company.
AI & Innovation:
The company accelerated its AI strategy through:
- Partnership with Anthropic to integrate Claude AI into Engineering Intelligence solutions.
- Strategic collaboration with Databricks to build Industrial AI solutions.
- AI patent portfolio expanded to 244 patents.
- Total patent portfolio reached 1,757 patents.
- Launch of Ainfonix™ 4.0.
- Engineering Intelligence Centre of Excellence inaugurated in Munich.
- Hosted EI Live 2026 and TECHgium® 2026 with over 62,000 registrations.Â
Segment Performance:
- Revenue Mix
- Sustainability: 37.1% (↑11.3% YoY)
- Mobility:Â 32.3%Â (returned to growth)
- Tech:Â 30.6%Â (declined 10.6% YoY).Â
- Geography
- North America remained the largest market at 60.4% of revenue.
- Europe contributed 18.0%.
- India contributed 13.2%.
- Rest of World contributed 8.4%.
Client Metrics:
- Active Clients:Â 423
- US$50M+ clients:Â 1
- US$20M+ clients:Â 13
- Headcount increased to 23,845 employees.
- Voluntary attrition remained stable at 14.7%.
Awards & Recognition:
LTTS was recognized as a Leader in the ISG Provider Lens® Digital Engineering Services 2026 (North America)across:
- Augmented Design & R&D Services
- Intelligent Operations & Connected Experiences
- Integrated Platform & Application Services
The company also received the Financial Express Mobility Awards 2026 for Excellence in Mobility Technology Solutions.Â
Risk Analysis
Summary:
- The quarter was fundamentally strong, although growth remains dependent on continued enterprise engineering spending and execution of large transformation programs.
Key Risks:
- Tech segment revenue declined during the quarter.
- Foreign exchange volatility reduced other income.
- Large-deal execution remains critical to sustaining growth.
- Global macroeconomic uncertainty could delay customer decision-making.
Worst Case:
- Weak enterprise technology spending or delays in large engineering transformation projects could moderate revenue growth and margin expansion in future quarters.
Risk Level: Low to Moderate
Company Commentary
CEO & Managing Director Amit Chadha stated that:
- Lakshya 31 initiatives are translating into tangible business outcomes.
- Engineering Intelligence and AI are creating larger deal opportunities.
- AI maturity consulting and proprietary AI Readiness Index are helping clients accelerate adoption.
- LTTS remains confident of delivering 13–15% CAGR while maintaining 16–17% EBIT margins over the next five years.Â
Official Exchange Filing: L&T Technology Services (LTTS) Limited
