Mid-sized IT and digital engineering services company L&T Technology Services (LTTS) reported a 2.8% year-on-year (YoY) rise in net profit for the July to September quarter of fiscal year 2025-26 at Rs 328.7 crore. Sequentially, profit grew 4.1%.
The Mumbai-headquartered company’s revenue jumped 15.8% YoY to Rs 2,979.5 crore, up 4.0% quarter-on-quarter (QoQ), backed by growth in key regions of North America, Europe and India while degrowth in the ‘rest of the world’ region.
By verticals, sustainability and tech segment, accounting for over 63% of revenue share, saw healthy uptick while mobility sector witnessed a declined both sequentially and on-year basis.
“Mobility is a challenge. I believe that mobility now is starting to bottom out. Don't count anything until December, because it's a furlough quarter…Mobility will start climbing back from February…In tech, we did not want to compromise on margins,” Amit Chadha, chief executive and managing director of LTTS told ET.
The company’s operating margins improved sequentially to 13.4% from 13.3% in the June quarter even as it was substantially lower from a year ago quarter’s 15.1% because of the Intelliswift acquisition amortisation impact.
“In H1 we had to support some clients, which gets over now. We have been able to improve the pyramid in the company further and take out slack from the system with utilisation going up, even as we added 300 freshers,” Chadha said adding that LTTS has grown revenue keeping the headcount flat at 23,678 adding 52 employees from previous quarter, which will further aid margins.
Like its larger peers, Chadha believes H2 will be better than H1. “Because we are seeing growth coming back in engineering and manufacturing, especially in AI…Tariffs are the new normal and clients have started baking it into their thinking…non-automotive and non-mobility, people have started signing, moving ahead, he said.
The Larsen & Toubro subsidiary bagged record large deal wins with total contract value (TCV) touched $300 million, crossing $200 million for the third straight quarter. During the quarter, the company bagged a large $100 million (about Rs 886 crore) multi-year agreement from a US-based industrial equipment manufacturer.
“It's like a Diwali bonus… We invested in AI before everybody else. In fact, we have launched our own AI and agentic AI platform for engineering and manufacturing. We have been able to generate about 1% of revenues of license sales in the trailing 12 months of trading, both AI and non-AI...this will grow to 5% in the medium term,” Chadha said.
The company aims to monetise its 1600 patents and another 216 patents in AI, he added.
LTTS board also proposed an interim dividend of Rs 18 per share with record date of October 27.
Before the results announcement, LTTS shares closed lower by 1% to Rs 4150.55 per share on the BSE, which ended higher at 0.58%.
The Mumbai-headquartered company’s revenue jumped 15.8% YoY to Rs 2,979.5 crore, up 4.0% quarter-on-quarter (QoQ), backed by growth in key regions of North America, Europe and India while degrowth in the ‘rest of the world’ region.
By verticals, sustainability and tech segment, accounting for over 63% of revenue share, saw healthy uptick while mobility sector witnessed a declined both sequentially and on-year basis.
“Mobility is a challenge. I believe that mobility now is starting to bottom out. Don't count anything until December, because it's a furlough quarter…Mobility will start climbing back from February…In tech, we did not want to compromise on margins,” Amit Chadha, chief executive and managing director of LTTS told ET.
The company’s operating margins improved sequentially to 13.4% from 13.3% in the June quarter even as it was substantially lower from a year ago quarter’s 15.1% because of the Intelliswift acquisition amortisation impact.
“In H1 we had to support some clients, which gets over now. We have been able to improve the pyramid in the company further and take out slack from the system with utilisation going up, even as we added 300 freshers,” Chadha said adding that LTTS has grown revenue keeping the headcount flat at 23,678 adding 52 employees from previous quarter, which will further aid margins.
Like its larger peers, Chadha believes H2 will be better than H1. “Because we are seeing growth coming back in engineering and manufacturing, especially in AI…Tariffs are the new normal and clients have started baking it into their thinking…non-automotive and non-mobility, people have started signing, moving ahead, he said.
The Larsen & Toubro subsidiary bagged record large deal wins with total contract value (TCV) touched $300 million, crossing $200 million for the third straight quarter. During the quarter, the company bagged a large $100 million (about Rs 886 crore) multi-year agreement from a US-based industrial equipment manufacturer.
“It's like a Diwali bonus… We invested in AI before everybody else. In fact, we have launched our own AI and agentic AI platform for engineering and manufacturing. We have been able to generate about 1% of revenues of license sales in the trailing 12 months of trading, both AI and non-AI...this will grow to 5% in the medium term,” Chadha said.
The company aims to monetise its 1600 patents and another 216 patents in AI, he added.
LTTS board also proposed an interim dividend of Rs 18 per share with record date of October 27.
Before the results announcement, LTTS shares closed lower by 1% to Rs 4150.55 per share on the BSE, which ended higher at 0.58%.