L&T Technology Services reported a consolidated net profit of ₹3,571 million for the quarter ended June 30, 2026, an increase of 12.9% compared to ₹3,161 million in the corresponding period of the previous year. On a sequential basis, net profit stood at ₹3.60 billion compared to ₹3.32 billion in the previous quarter. Revenue from operations grew 11.5% year-on-year to ₹29,401 million from ₹26,375 million, and rose to ₹29.40 billion from ₹28.58 billion on a quarter-on-quarter basis. The board approved the unaudited financial results during a meeting held on July 14, 2026. The statutory auditors, M S K A & Associates LLP, issued a limited review report on the unaudited financial results, expressing an unmodified conclusion.

The company's EBIT for the quarter stood at ₹5.50 billion, compared to ₹5.21 billion in the previous quarter, with EBIT margin at 18.65% versus 18.24% sequentially. Total comprehensive income for the quarter stood at ₹4,641 million, a significant rise from ₹2,773 million in the same quarter last year. Earnings per share (EPS) for continuing and discontinued operations increased to ₹33.62 on a basic basis from ₹29.81 a year ago. The net profit after tax includes the impact of exceptional items arising from the implementation of the New Labour Code and restructuring costs, as well as profit from discontinued operations.

Consolidated Financial Performance

The company's total income for the quarter reached ₹29,692 million, compared to ₹27,045 million in Q1FY26. Total expenses increased to ₹24,932 million from ₹22,938 million in the previous year. Profit before tax from continuing operations stood at ₹4,760 million, while profit from discontinued operations was recorded at ₹48 million. The following table summarises the key financial metrics for the quarter:

The table below presents the sequential (QoQ) performance comparison for key metrics:

Segment-wise Results

The Sustainability segment led revenue growth, reporting ₹10,904 million for the quarter, up from ₹8,818 million in the prior year. The Mobility segment revenue increased to ₹9,488 million from ₹8,479 million, while the Tech segment revenue stood at ₹9,009 million compared to ₹9,078 million in the same period last year. The segment-wise breakdown is presented below:

Analyst Views

Following the quarterly results, leading brokerages weighed in on the company's performance and outlook. JPMorgan maintained its Neutral rating on L&T Technology Services with a target price of ₹3,300, noting that 1QFY27 beat estimates with 1.5% QoQ constant currency revenue growth and 50 basis points margin expansion to 15.7%, driven by the Sustainability and Mobility segments. The brokerage acknowledged that weak large deal total contract value (TCV) was offset by an optimistic FY27 outlook, expected deal ramp-ups, and a maintained 16.5% margin target by 4QFY27.

Nomura also maintained its Neutral stance with a target price of ₹3,180, citing a decent 1QFY27 performance with growth led by the Sustainability vertical, EBIT margin beating estimates at 15.7%, US$100 million deal wins, and continued focus on AI capabilities, while reiterating its FY31 Project Lakshya goals.

Kotak Institutional Equities maintained its Reduce rating with a target price of ₹3,350, noting that 1QFY27 delivered slightly better growth and margins, supported by strong plant engineering demand. However, the brokerage highlighted that the company's business mix limits growth acceleration, and projected FY27 constant currency revenue growth of 5.2% along with an EBIT margin of 15.9%. The analyst views are summarised below:

Management Guidance and Outlook

During the post-results concall, management provided key guidance across financial and operational parameters. The company is on track to achieve a mid-16% EBIT margin on or before Q4 FY27, driven by growth in higher-margin segments, productivity from Engineering Intelligence, and operational excellence. Free cash flows are guided to be 90% or more of net income for the year, even as Q1 FY27 delivered a notably strong free cash flow conversion of 153% of net income. The CFO expects the combined Days Sales Outstanding (DSO) to remain in the 80 to 85 days range, with the effective tax rate (ETR) projected to be between 26.2% and 26.7%. The company maintains an aspiration of 13% to 15% CAGR for revenue over the next five years, while targeting EBIT margins of 16% to 17%.

Board Decisions and Corporate Actions

During the meeting, the board took note of the cessation of Mr. Narayanan Kumar as an Independent Director upon the completion of his second term on July 14, 2026. The board approved the re-appointment of Mr. Luis Miranda as an Independent Director for a second term of five years commencing October 19, 2026, subject to shareholder approval. Additionally, the board approved the request of Nabha Power Limited to re-classify from the 'Promoter Group' category to the 'Public' category, subject to regulatory approvals.

L&T Technology Services Limited has partnered with Anthropic to accelerate Engineering Intelligence by integrating Claude models across its platforms. The collaboration aims to help enterprise clients transform engineering workflows, accelerate innovation, and unlock new revenue opportunities. By leveraging deep engineering expertise and advanced AI, the partnership seeks to enable faster decision-making and continuous improvement in the design and maintenance of products and industrial systems.

The integration of Claude models will span LTTS' Engineering Intelligence platforms, including AgenticIQ, PlxAI, Ainfonix™, AiNexus, and AiTest. These tools will be utilized across the product and software development lifecycle, covering knowledge management, software development, validation, testing, and lifecycle management. The initiative is designed to improve quality, productivity, and speed to market for clients.

Amit Chadha, CEO & Managing Director of L&T Technology Services, stated that engineering is entering a new era where intelligence is integral to design and development. He emphasized that the partnership represents a significant step in embedding Claude into engineering workflows to fundamentally redesign work rather than simply automating existing processes.

Key Platforms and Integration

LTTS will integrate Claude models into several proprietary platforms to enhance engineering capabilities:

The company operates as a listed subsidiary of Larsen & Toubro and serves 69 Fortune 500 companies. As of June 30, 2026, LTTS reported 23,840 employees across 21 global design centers, 30 global sales offices, and 103 innovation labs.