L&T Technology Services Q2FY27: EBITDA margin rises to 19.27% on revenue growth
- Net profit rose 66.8% YoY to ₹5,482 million, beating estimates of ₹3,800 million
- EBITDA margin expanded to 19.27% in Q2FY27 from 18.65% in Q1FY27
- Revenue grew 12.1% YoY to ₹30,404 million, driven by Sustainability segment
- Interim dividend of ₹20 per share declared with record date October 27, 2026
*this image is generated using AI for illustrative purposes only.
L&T Technology Services reported a 66.8% year-on-year increase in net income to ₹5,482 million for the second quarter of fiscal 2027 (Q2FY27). The company’s revenue rose 12.1% YoY to ₹30,404 million, driven by strong growth in the Sustainability segment and large deal wins.
The net profit figure includes a one-time gain of ₹1,650 million from the disinvestment of the SWC business. Excluding this exceptional item, the underlying operational performance remains robust, with EBITDA margin expanding to 19.27% in Q2FY27 from 18.65% in Q1FY27. The company declared an interim dividend of ₹20 per share, with a record date of October 27, 2026.
Financial Performance Overview
Revenue in constant currency grew 4.8% YoY and 2.7% QoQ, reaching $317 million. The sequential improvement in profitability reflects better utilization and a favorable mix shift toward higher-margin Engineering Intelligence (EI) solutions. Net profit clocked ₹5.5 billion in Q2FY27, up from ₹3.6 billion in Q1FY27, surpassing the analyst estimate of ₹3.8 billion.
| Metric | Q2FY26 | Q1FY27 | Q2FY27 | YoY Change |
|---|---|---|---|---|
| Revenue (₹ million) | 27,133 | 29,401 | 30,404 | +12.1% |
| EBITDA (₹ million) | N/A | 5,500 | 5,900 | N/A |
| EBITDA Margin (%) | N/A | 18.65% | 19.27% | +62 bps (QoQ) |
| Net Income (₹ million) | 3,287 | 3,566 | 5,482 | +66.8% |
Segment and Geographic Trends
The Sustainability segment emerged as the primary growth engine, contributing 38.0% of total revenue with a 13.4% YoY increase. Mobility sustained momentum with 4.7% YoY growth, while the Tech segment contracted 8.5% YoY. Geographically, North America remained the largest market at 60.7% of revenue, growing 4.4% YoY. Rest of the World saw significant expansion with 18.3% YoY growth.
Deal Wins and Strategic Initiatives
LTTS secured large deal wins totaling over $200 million in total contract value (TCV) during the quarter. Notably, AI-related deals accounted for more than 50% of this total. Key wins included a $75 million deal from a global telecommunications provider and several engagements in automotive and energy sectors focused on AI-powered engineering and Industry 4.0 frameworks.
The company highlighted its EIOne platform and partnerships with NVIDIA, Anthropic, and Databricks as key drivers for future growth. Annualized revenue from EI-led solutions stood at $120 million in Q2FY27.
What the Numbers Show
A closer look at the balance sheet reveals a significant reduction in accounts receivable from ₹23,764 million in March 2026 to ₹21,052 million in September 2026, despite revenue growth. This suggests improved collection efficiency or a shift in billing cycles. Additionally, the cash position decreased from ₹16,505 million to ₹14,401 million, likely due to dividend payouts and capital expenditures, while investments increased substantially to ₹27,347 million, indicating redeployment of surplus cash into financial instruments.
Historical Stock Returns for L&T Technology Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.78% | +10.43% | +7.75% | +4.73% | -13.95% | 0.0% |
How will the continued contraction in the Tech segment impact LTTS's long-term revenue diversification strategy?
What is the expected trajectory for EBITDA margins in Q3FY27 now that the one-time SWC disinvestment gain is excluded from operational metrics?
How might the partnerships with NVIDIA and Anthropic translate into recurring revenue streams beyond the current $120 million annualized EI-led solutions figure?
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