L&T Technology Services Limited has officially submitted the postal ballot voting results for its Employee Stock Option Scheme 2016 amendment to the National Stock Exchange and BSE Limited under Regulation 44 of SEBI regulations. The company announced the voting results on January 19, 2026, following the completion of the remote e-voting process that concluded on January 18, 2026.

Regulatory Submission and Compliance

The company submitted comprehensive voting results to both stock exchanges, with NSE symbol LTTS and BSE scrip code 540115. Company Secretary and Compliance Officer Prasad Shanbhag digitally signed the submission documents, ensuring full regulatory compliance under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Overwhelming Shareholder Support

The postal ballot witnessed decisive support for the ESOP amendment proposal, with shareholders demonstrating strong confidence in the company's employee benefit strategies.

Category-wise Voting Analysis

The voting pattern revealed unanimous support from promoters and strong backing from public non-institutional investors, while public institutions showed mixed response.

ESOP Sub-Plan 2025 Creation

The approved amendment creates the Employee Stock Option Sub-Plan 2025, specifically designed to comply with US Federal Laws and California Corporate Securities Law of 1968. Under this new framework, the Board of Directors is authorized to grant up to 2,50,000 employee stock options through the Sub-Plan 2025, forming part of the original 60,00,000 options approved at the January 21, 2016 Extraordinary General Meeting.

Scrutinizer Certification and Process

Alwyn D'Souza of Alwyn D'Souza & Co., Company Secretaries, served as the appointed scrutinizer for the postal ballot process. The scrutinizer's report confirmed full compliance with Companies Act 2013 provisions, SEBI regulations, and MCA circulars. The e-voting facility was provided by National Securities Depository Limited, with votes unblocked on January 18, 2026, at 5:00 PM IST in the presence of two independent witnesses.

The voting results and scrutinizer's report have been made available on the company's website at www.ltts.com and NSDL's e-voting platform at evoting.nsdl.com, ensuring complete transparency in the process.

L&T Technology Services delivered disappointing Q3 results with sharper-than-expected revenue decline and reduced growth guidance, prompting multiple brokerages to cut their price targets. The engineering services firm reported consolidated net profit of ₹300.00 crore, declining 7.90% quarter-on-quarter, while facing an additional exceptional loss of ₹35.40 crore during the quarter.

Revenue Decline Exceeds Expectations

Constant currency revenue declined 2.80% quarter-on-quarter, significantly missing analyst expectations of 1.50% growth. Revenue from operations softened to ₹2,900.00 crore, reflecting the company's strategic decision not to pursue renewals in select low-margin accounts as part of its business recalibration strategy. This restructuring resulted in a revenue loss of $15 million during Q3, translating to an annualized impact of approximately $60 million.

Strong Margin Expansion Despite Revenue Pressure

Despite revenue challenges, LTTS demonstrated operational resilience with EBIT margin improving to 14.60%, ahead of analyst estimates of 13.70%. The margin expansion was driven by the company's strategic pivot towards profitability over scale, including the deliberate exit from low-margin contracts. Management now aims to achieve 16.50% margins earlier than the previously guided timeline of Q4 FY27 to Q1 FY28.

Revised Growth Guidance Signals Strategic Shift

LTTS significantly recalibrated its growth outlook, reducing FY26 constant currency revenue growth expectation from double digits to mid-single-digit growth. This revision reflects the company's 'Lakshya' strategy, which prioritizes margin improvement over topline expansion. The portfolio rationalization under this strategy has resulted in the company opting not to renew certain low-margin contracts both within and outside its software and services business.

Brokerage Reactions and Price Target Cuts

Multiple brokerages responded negatively to the results, cutting price targets citing weak near-term growth prospects. HSBC maintained its 'Hold' rating but reduced the price target to ₹4,745, noting that the revised guidance implies organic revenue decline in FY26. The brokerage questioned the benefits of recalibration given unchanged medium-term margin targets.

Nomura retained its 'Reduce' rating with a price target of ₹3,900, estimating the restructuring impact at around 5% of the business. However, it acknowledged strong deal wins and robust pipeline, expecting EBIT margins to recover steadily over FY26-28.

JPMorgan maintained 'Neutral' rating with ₹4,650 price target, highlighting the sharp revenue miss and guidance cut while noting that margin recovery is already underway.

Market Performance and Outlook

Shares of LTTS are expected to open lower following the results announcement. The stock settled 1.69% lower at ₹4,245 and is down 3% in 2026. The company currently trades at around 29 times FY27 earnings, with analysts noting that stronger-than-expected growth and margin improvement would be key upside risks. Despite near-term challenges, the company maintains a strong deal pipeline with multiple large deals in various stages, demonstrating continued client confidence in LTTS capabilities.