L&T Technology Services Q1 FY26 Results: Revenue Jumps 16% YoY, Margins Hold Despite Sequential Dip
By Shishta Dutta | Published at: Jul 16, 2025 06:19 PM IST
Mumbai, July 16, 2025 — L&T Technology Services Limited (NSE: LTTS, BSE: 540115) announced a 16.4% year-on-year (YoY) growth in revenue to ₹2,866 crore in Q1 FY26, helped by strong deal wins and continued demand across segments. However, on a sequential basis, revenue decreased by 3.9%, amid macroeconomic challenges in the tech sector.
L&T Technology Services Limited Share Price Momentum
L&T Technology Services (LTTS) is experiencing a slightly positive momentum in its share price today. The stock opened at ₹4,358.00, which is marginally higher than its prior close of ₹4,343.20. The share price reached a 52-week high of ₹ 6,000 and then dropped to a low of ₹ 3,966.
Key Financial Highlights (Q1 FY26)
| Metric | Q1 FY26 | Q4 FY25 | Q1 FY25 | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Revenue (₹ million) | 28,660 | 29,824 | 24,619 | -3.9% | +16.4% |
| EBIT (₹ million) | 3,813 | 3,939 | 3,836 | -3.2% | -0.6% |
| Net Profit (₹ million) | 3,157 | 3,111 | 3,136 | +1.5% | +0.7% |
| EBIT Margin (%) | 13.3% | 13.2% | 15.6% | +10 bps | -230 bps |
| Net Profit Margin (%) | 11.0% | 10.4% | 12.7% | +60 bps | -170 bps |
| EPS (Basic) (₹) | 29.81 | 29.38 | 29.65 | – | – |
USD Revenue stood at $335.3 million, a growth of 13.6% YoY but declined 2.9% QoQ.
Segment-Wise and Geographical Performance
Revenue by Segment (YoY)
| Segment | Q1 FY26 Mix | YoY Growth |
|---|---|---|
| Mobility | 29.6% | -4.4% |
| Sustainability | 30.8% | +16.4% |
| Tech | 39.6% | +29.4% |
The Sustainability vertical crossed the $100 million milestone, contributing over $400 million on an annualized basis.
Revenue by Geography (YoY)
| Region | Q1 FY26 Mix | YoY Growth |
|---|---|---|
| North America | 54.1% | +16.1% |
| Europe | 17.1% | +7.6% |
| India | 21.0% | +8.6% |
| RoW | 7.8% | +26.0% |
Deal Wins and Strategic Developments
LTTS continued its large-deal momentum for the third straight quarter, securing:
- 1 deal worth $50 million+
- 3 deals in the $20–30 million range
- 6 deals above $10 million
Notable wins include:
- A $50 million+ enterprise data & digital deal in Sustainability
- A Safe City AI project in India
- Multiple mobility contracts in the U.S. focused on EVs, off-highway equipment, and embedded software
Design Centre Expansion
The company inaugurated a new design centre in Plano, Texas, specialising in AI, cybersecurity, and advanced digital engineering to support high-value services nearshore.
Management Commentary
“We commenced the fiscal year with strong momentum in large deals… Our ‘Go Deeper to Scale’ strategy and investments in advanced technologies are strengthening client relationships,” said Amit Chadha, CEO & MD.
“With AI taking center stage, we launched PLxAI, our proprietary AI framework, to fast-track the product development lifecycle. Despite sequential headwinds, we expect double-digit growth in FY26,” he added.
Operational Snapshot
| Metric | Q1 FY26 | Q4 FY25 | Change |
|---|---|---|---|
| Active Clients | 459 | 421 | +38 |
| $10M+ Clients | 34 | 32 | +2 |
| Headcount | 23,626 | 24,258 | -632 |
| Attrition (LTM) | 14.8% | 14.3% | +50 bps |
| Onsite Revenue Share | 43.9% | 44.2% | -30 bps |
Balance Sheet and Cash Flow
| Metric | Q1 FY26 | FY25 |
|---|---|---|
| Total Assets (₹ million) | 94,025 | 96,435 |
| Net Cash from Ops (₹ million) | 83 | 14,811 |
| Free Cash Flow (₹ million) | -283 | 13,793 |
| Cash & Cash Equivalents | 13,138 | 15,658 |
A dip in operating cash flow and free cash was noted, primarily due to higher receivables and the impact of seasonality.
Recognitions & CSR
- Named a leader in ER&D services by HFS & ISG
- Inducted into John Deere’s Hall of Fame for five consecutive years
- CSR focus on education, sustainability, and inclusive development continued in Q1
Strategic Outlook
LTTS reiterated its USD 2 billion medium-term revenue target and expects double-digit growth in FY26, supported by its AI-led offerings, diversified vertical base, and robust order pipeline.
About L&T Technology Services Ltd
L&T Technology Services Ltd (LTTS) is a listed subsidiary of Larsen & Toubro and a global leader in engineering and R&D services. It serves Fortune 500 clients across verticals such as industrial products, medical devices, mobility, and telecom, and operates 105 innovation labs and 23 global design centres.
REF:https://nsearchives.nseindia.com/corporate/LTTS_16072025163711_PressReleaseandInvestorRelease.pdf
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