L&T Technology Services Stock Up Today by More Than 1%
By Ankur Chandra | Published at: Jul 17, 2025 01:04 PM IST
Mumbai, July 17, 2025: Shares of L&T Technology Services Ltd (NSE: LTTS, BSE: 540115) are up by 1.79%, trading at Rs 4,424.80 at 12:50 p.m. IST, 17th July. The company’s net profit increased y-o-y by 0.7% in the June quarter.
Q1 FY26 Financial Highlights
| Metric | Q1 FY26 | Q4 FY25 | Q1 FY25 | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Revenue (₹ mn) | 28,660 | 29,824 | 24,619 | -3.9% | 16.4% |
| EBIT (₹ mn) | 3,813 | 3,939 | 3,836 | -3.2% | -0.6% |
| Net Profit (₹ mn) | 3,157 | 3,111 | 3,136 | 1.5% | 0.7% |
| EBIT Margin | 13.3% | 13.2% | 15.6% | +10 bps | -230 bps |
| Net Margin | 11.0% | 10.4% | 12.7% | +60 bps | -170 bps |
“We commenced the fiscal year with strong momentum in large deals, continuing the trend from previous quarters. Our ‘Go Deeper to Scale’ strategy, PLxAI framework, and U.S. expansion are accelerating our growth,” said Amit Chadha, CEO & MD.
Segment Performance
- Sustainability grew 4.1% QoQ and 16.4% YoY, crossing the $100 million mark in quarterly revenue.
- Tech segment led YoY growth at +29.4%, though down 8.5% QoQ.
- Mobility declined 1.5% QoQ and 4.4% YoY.
| Segment | Q1 FY26 Revenue Share | QoQ Growth | YoY Growth |
|---|---|---|---|
| Mobility | 29.6% | -1.5% | -4.4% |
| Sustainability | 30.8% | +4.1% | +16.4% |
| Tech | 39.6% | -8.5% | +29.4% |
Key Deal Wins
- A $50 million deal in the Sustainability segment with a global energy major.
- Strategic partnership with thyssenkrupp Steering to set up a software center in Pune.
- Multi-year contracts from U.S. clients in EV, satellite, LNG, and mobility engineering.
- New AI-powered Safe City project in India involving adaptive traffic and video analytics systems.
Strategic Expansion
Further solidifying its global presence, L&T Technology Services inaugurated a new design centre in Plano, Texas. This facility will concentrate on cutting-edge areas such as AI, cybersecurity, and digital manufacturing, and is projected to create over 350 high-skilled jobs. This expansion enhances the company’s proximity to its U.S. clientele, particularly for aerospace and defence-related work as the facility is ITAR-compliant.
Valuation and Trading Metrics (As of 12:25 PM IST)
| Metric | Value |
|---|---|
| VWAP | ₹4,437.83 |
| Adjusted P/E Ratio | 36.39 |
| Market Cap | ₹47,311.22 Cr |
| Free Float Market Cap | ₹12,252.70 Cr |
| Deliverable % | 45.54% |
| Face Value | ₹2 |
| 52-Week High / Low | ₹6,000 / ₹3,966 |
| Trading Status | Active |
| Listed Since | 23-Sep-2016 |
| Index | NIFTY 500 |
Future Outlook
The engineering research and development (ER&D) services market is experiencing significant growth, driven by increasing global R&D investments, the demand for specialised skills, and the acceleration of digital transformation across various industries. India’s ER&D sector is projected to reach $63 billion by 2025, with global spending on ER&D expected to exceed $1.5 trillion by 2025-2026. Key trends shaping the market include the integration of AI and machine learning, the proliferation of IoT technologies, and the growing emphasis on sustainability. L&T Technology Services’ strategic focus on these areas, coupled with its “Go Deeper to Scale” strategy and expansion into critical markets like the U.S., positions it well for continued growth. The company expects to achieve double-digit growth in FY26 and maintains its medium-term revenue outlook of $2 billion. Analysts currently have a neutral overall rating for LTTS, with a one-year price target of ₹4,587.13, and a strong conviction for continued growth in the ER&D space.
About the Company
L&T Technology Services Ltd (LTTS) is a listed subsidiary of Larsen & Toubro Ltd, specialising in pure-play engineering services. The company operates across Mobility, Sustainability, and Tech verticals with clients spanning 69 Fortune 500 firms. As of June 30, 2025, it employs over 23,600 professionals across 105 innovation labs, 23 global design centres, and 30 sales offices worldwide.
REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/7255e3f6-7647-4f51-8a3b-c60818e0365d.pdf
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