L&T Technology Services (LTTS) has reported a strong performance in Q2, with record quarterly deal wins of $292 million, including a $100 million deal in Sustainability and a $60 million deal in the Tech segment. The company's strategic focus on AI-driven solutions and expansion into new markets is paying off, as it aims for double-digit growth.

Financial Highlights

• Revenue grew 1.3% sequentially and 10.4% annually in USD constant currency terms
• EBIT margins improved to 13.4% from the previous quarter
• Free cash flow was healthy at ₹445 crores
• The board approved an interim dividend of ₹18 per share

Segment Performance

Strategic Developments

• Achieved record quarterly deal wins of $292 million, including the largest-ever $100 million deal in the Industrial subsegment
• Filed 216 patents in AI & GenAI, with overall patent count exceeding 1,600
• Launched AI-first delivery model and continued investments in GenAI, Agentic AI, and Physical AI
• Developed proprietary AI frameworks and platforms, including PLxAI, Qguard.ai, FusionWorld.ai, GenIQ, and AiNexus
• Formed strategic partnerships with SiMa.ai, NVIDIA, and MIT Media Lab to strengthen AI capabilities

Outlook

• Management expects H2 performance to be better than H1
• The company maintains its double-digit growth aspiration
• Medium-term revenue target of $2 billion remains intact
• Margins expected to improve as strategic client support concluded in Q2

LTTS CEO and MD, Amit Chadha, commented on the results: "We celebrated Diwali early, with a near-$300 Mn large deal TCV intake in Q2. I am happy to see our 'Go Deeper to Scale' and multi-segment strategy leading to deeper engagements with our global clients and a strong order book in spite of the current market dynamics and geopolitical unpredictability."

The company's focus on AI-driven solutions and expansion into new markets is evident in its strategic initiatives. LTTS has established a strong leadership position in engineering and industrial AI offerings, which is helping gain client mindshare and market share. The launch of an AI-first delivery model and continued investments in various AI technologies demonstrate the company's commitment to staying at the forefront of technological advancements.

While challenges persist in the Mobility segment, particularly in the automotive sector, LTTS remains optimistic about its overall growth prospects. The company expects both revenue and EBIT margins to improve in the second half, with H2 growth projected to be better than H1.

As LTTS continues to execute its growth strategy and capitalize on the increasing demand for engineering and R&D services, investors and industry observers will be watching closely to see if the company can maintain its momentum and achieve its ambitious growth targets in the coming quarters.

L&T Technology Services (LTTS), a prominent player in AI, Digital & ER&D Consulting Services, has achieved a significant milestone by securing Caterpillar's Supplier Excellence Recognition (SER) for the second consecutive year. This recertification, announced at Caterpillar's Supplier Excellence Recognition event, underscores LTTS' commitment to maintaining high standards in its strategic partnership within the Mobility segment.

Key Highlights of the Recognition

• Consecutive Achievement: LTTS has been recertified, following its initial certification in the previous year.
• Strategic Partnership: As a key supplier to Caterpillar Inc., LTTS provides advanced engineering services supporting Caterpillar's global supply chain and sustainability initiatives.
• Recognition Criteria: Caterpillar's SER is awarded to select suppliers meeting stringent standards in quality assurance, timely delivery, innovation, and alignment with Caterpillar's values.

Impact on LTTS' Position

The recertification reinforces LTTS' standing as a reliable and innovative partner in the engineering services sector. Alind Saxena, Executive Director and President of Mobility and Tech at LTTS, emphasized the significance of this achievement, stating, "Being SER-certified two years in a row is a testament not just to our team's dedication, but also to the strength of our relationship with Caterpillar."

LTTS at a Glance

This recognition not only highlights LTTS' consistent performance but also its ability to meet the evolving needs of industry giants like Caterpillar. As the company continues to drive innovation and excellence in engineering services, this accolade is likely to strengthen its position in the global market and potentially attract more high-profile partnerships in the future.

The recertification serves as a strong indicator of LTTS' operational excellence and its alignment with the long-term vision of its strategic partners. For investors and industry observers, this consecutive recognition may signal LTTS' sustained growth trajectory and its potential for continued success in the competitive field of engineering and R&D services.