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Informist, Monday, Apr. 20, 2026

 

By Arya S. Biju

 

MUMBAI – L&T Technology Services Ltd. is expected to post a modest recovery in the March quarter after the sequential fall in revenue and net profit in the previous quarter. However, the growth in both metrics is likely to be limited by the impact of portfolio rationalisation, including trimming of some of the telecommunications business and divestment of its smart world and communication business, which will be completed by September.

 

The technology company, which provides engineering and research and development services, is expected to report a consolidated net profit of INR 3.41 billion for the March quarter, up around 1% sequentially, according to an average of estimates from 14 brokerages. While this is way better than the near 8% sequential fall in its bottom line in the previous quarter, the growth is still the slowest in five quarters. On year, the company is expected to report a near 10% rise in net profit, marking the highest on-year rise in nine quarters.

 

The company's top line for the quarter is expected to grow over 2% sequentially to INR 29.90 billion, according to an average of 14 estimates. While this is better than the near 2% sequential decline reported in the trailing quarter, the growth is still the slowest in nine quarters. On year, the company's revenue is expected to grow only marginally compared to the over 10% year-on-year growth reported in the December quarter.

 

Nomura Equity Research has the highest estimate of INR 3.69 billion for the company's bottom line while the lowest estimate of INR 3.14 billion is from Anand Rathi Share and Stock Brokers Ltd. The highest estimate for top line is INR 31.92 billion from Dolat Capital Market Pvt. Ltd. The lowest estimate of INR 29.40 billion is from Prabhudas Lilladher Pvt. Ltd.

 

Estimates for the company's revenue for the quarter in constant currency terms range from a decline of 1.2% to a rise of 1.5%, as per projections by seven brokerages. Dolat Capital Market Pvt. Ltd. expects the company's revenue in constant currency to rise 6% sequentially, supported by a low base in the trailing quarter on account of client rationalisation, ramping up of deals, and a "positive smart world and communication business".

 

The sequential growth in revenue will be driven by higher sales in the sustainability vertical, Kotak Securities said. However, "some impact is expected on sustainability vertical from Middle East (West Asia) region," ICICI Securities said. Sales in the mobility segment are likely to be flat. Revenue from the company's largest vertical, technology, is expected to decline sharply on reprioritisation of its low-margin smart world and communication business, Kotak Securities added. 

 

Analysts were divided on the company's margin performance for the reporting quarter, with some expecting it to contract sequentially, because of lower revenue, impact of wage hikes, higher investments, and weakness in the mobility business, and others expecting it to improve supported by business mix, depreciation of the rupee against the dollar, and cost optimisation programmes. Some also expect the company's earnings before interest and tax margin for the reporting quarter to remain largely flat on a sequential basis at around 14.6%.

 

L&T Technology will announce its March quarter earnings Wednesday. Market participants will watch out for the management's commentary on the company's restructuring exercise and the likely benefits for its EBIT margin and further updates on divestment of its smart world and communication business. Comments on the 2026 technology budget by US-based clients and any likely impact of the increased geopolitical uncertainties on their decision making and spending will also be monitored. The revenue and margin outlook for the financial year 2026-27 (Apr-Mar), order wins, deal pipeline, and impact of artificial intelligence-led disruptions and the conflict in West Asia on business will also be in focus. 

 

Monday, shares of L&T Technology closed over 2% higher at INR 3,572.50. The stock has fallen nearly 9% since the company detailed its December-quarter earnings on Jan. 15 and is down over 40% from the record high of INR 6,000 reached on Aug. 30, 2024.

 

Of the 11 research reports on the company available with Informist, seven have a "hold" or equivalent recommendation on the stock with an average target price of INR 4,361, nearly 24?ove its current price. Of the remaining four, two have a "buy" or equivalent recommendation and two have a "sell" or equivalent call.

 

Following are the March quarter earnings estimates, in INR billion, for L&T Technology Services from 14 brokerages in descending order of the estimate of net profit:

 

Brokerage	Net Sales	Net Profit	EBITDA	Revenue ($ mln)	?IT margin
Nomura Equity Research	29.94	3.69	--	328.00	14.8
Dolat Capital Market Pvt. Ltd.	31.92	3.68	--	345.00	14.6
Centrum Broking Ltd.	29.46	3.47	--	--	14.4
Emkay Global Financial Services Ltd.	29.94	3.44	5.24	325.00	--
Motilal Oswal Financial Services Ltd.	30.11	3.44	5.12	--	--
Kotak Securities Ltd.	30.19	3.41	--	327.00	14.8
Indsec Securities and Finance Ltd.	29.70	3.40	--	319.00	14.5
Prabhudas Lilladher Pvt. Ltd.	29.40	3.40	--	321.90	14.4
Equirus Securities Pvt. Ltd.	29.86	3.39	5.32	323.00	14.8
IDBI Capital Market Services Ltd.	29.47	3.39	--	322.00	14.5
HDFC Securities Ltd.	29.50	3.37	--	323.00	14.3
ICICI Securities Ltd.	29.95	3.33	--	324.00	14.5
Nuvama Wealth Management Ltd.	29.73	3.22	--	326.00	12.3
Anand Rathi Share and Stock Brokers Ltd.	29.42	3.14	5.16	321.00	14.6
Average	29.90	3.41	5.21	325.41

 

End

 

US$1 = INR 93.12

 

Edited by Rajeev Pai

 

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