L&T Technology Services (L&T Tech) has unveiled its strategic vision, setting a revenue target of USD 2.00 billion for the fiscal year 2026 (FY26). This projection indicates the company's confidence in its growth trajectory and ability to capitalize on emerging opportunities in the technology services sector.

Growth Expectations

L&T Tech's management has expressed optimism about the company's growth prospects. The USD 2.00 billion revenue target for FY26 represents a significant increase from the company's current financial position, suggesting:

• Expansion plans
• Potential market share gains
• Anticipated increase in demand for its services

Financial Projections

In addition to its revenue target, L&T Tech has provided insights into its financial expectations:

• The company expects EBIT margins to be in the mid-16% range for Q4 FY'27 to Q1 FY'28.
• L&T Tech is targeting at least USD 200.00 million in deal wins for Q3 FY'26, which would be lower than Q2's USD 300.00 million in deal wins.

Strategic Implications

This forward-looking statement from L&T Tech carries several implications:

1. Market Confidence: The target suggests that L&T Tech's leadership has a positive outlook on both the company's capabilities and the overall market conditions.

2. Investment in Capabilities: To achieve such growth, L&T Tech may need to invest in:

   • Expanding its service offerings
   • Enhancing technological capabilities
   • Strengthening its workforce

3. Client Acquisition and Retention: The growth target likely involves strategies for:

   • Acquiring new high-value clients
   • Deepening relationships with existing clients
   • Possibly exploring new geographical markets

4. Industry Positioning: This goal positions L&T Tech as an ambitious player in the technology services sector, potentially attracting attention from investors and clients.

It's important to note that achieving such targets depends on various factors, including market conditions, global economic trends, and the company's execution capabilities. The projected deal wins for Q3 FY'26, being lower than the previous quarter, suggest potential fluctuations in the business environment.

L&T Technology Services (LTTS), a leading pure-play engineering services company, has reported robust financial results for the second quarter of fiscal year 2026, while reaffirming its medium-term revenue target of $2 billion. The company's performance highlights its strong position in the engineering and technology services sector, with a focus on AI-driven innovation and strategic partnerships.

Financial Highlights

LTTS reported impressive growth in Q2 FY26:

*CC: Constant Currency

The company's EBIT margin stood at 13.40% for the quarter.

Record Deal Wins and Segment Performance

LTTS achieved a record high Total Contract Value (TCV) of nearly $300 million in deal wins during Q2, reflecting strong client confidence in its offerings. The company's multi-segment strategy showed positive results:

• Sustainability Segment: Grew by 3.00% sequentially and 12.60% annually, with a $50 million account on an annual run-rate basis.
• Tech Segment: Remained resilient, contributing to overall growth.

AI-Driven Innovation and Partnerships

LTTS is strengthening its position in engineering and industrial AI through several initiatives:

1. Launched an AI-first delivery model
2. Introduced new AI platforms and solutions, including Qguard.ai, FusionWorld.ai, PLxAI, AiNexus, GENIQ, and TrackEi™
3. Deepened partnerships across the AI ecosystem, including collaborations with SiMa.ai, NVIDIA, and the MIT Media Lab

The company reported that 1% of its trailing 12-month revenue now comes from licenses, indicating early success in monetizing these AI initiatives.

Strategic Collaborations and Recognitions

• LTTS announced a multi-year membership agreement with the MIT Media Lab to collaborate on AI-led innovations in its Mobility, Sustainability, and Tech segments.
• The company was certified during Caterpillar's 2025 Supplier Excellence Recognition (SER) event.
• LTTS was rated as a Leader by ISG in the U.S. for Medical Device Digital Services 2025 and Automotive and Mobility Services and Solutions.

Management Commentary

Amit Chadha, CEO & Managing Director of LTTS, stated, "Our strong momentum of large deal wins continued as we touched a record high TCV of near-USD 300 Mn in the quarter which reflects the confidence our global clients have in our next-gen offerings." He added, "With an increased order book and a sharp focus on resilient and profitable growth, we maintain our medium-term outlook of USD 2 Bn revenue."

Future Outlook

LTTS expects both revenue and EBIT margins to improve in H2 compared to H1 of FY26. The company aims for double-digit growth in FY26 and reiterates its medium-term outlook of achieving $2 billion in revenue.

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹18.00 per share, with the record date set for October 27, 2025.

As LTTS continues to innovate and expand its AI capabilities, the company appears well-positioned to capitalize on the growing demand for advanced engineering and technology services across various industries.