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Informist, Wednesday, Apr. 22, 2026

By Gopika Balasubramanium

MUMBAI – L&T Technology Services Ltd.'s bottom line for the March quarter saw the highest sequential growth in 12 quarters with the company's revenue rebounding from a fall in the trailing quarter. Both metrics, however, still fell short of consensus estimates.

The technology company, which provides engineering and research and development services, reported a consolidated net profit of INR 3.32 billion for the March quarter, up about 10% sequentially and 7% annually. The net profit was slightly lower than the Street's estimate of INR 3.41 billion. The bottom line bounced back in the reporting quarter from a near 8% fall in the trailing quarter.

To be clear, the company's net profit includes a one-time loss of INR 370 million from the closure of certain overseas businesses as part of restructuring. Excluding this, the net profit is INR 3.69 billion, higher than the consensus estimate.

L&T Tech's consolidated revenue for the quarter rose just 2.5% sequentially to INR 28.58 billion, below the consensus estimate of INR 29.90 billion. On a year-on-year basis, the company's sales increased just over 8%.

In dollar terms, L&T Tech's revenue for the reporting quarter fell around 2% on quarter and rose marginally on year to $306 million. In constant currency terms, the company's revenue was down over 1% on a sequential basis but up marginally on year.

The company's earnings before interest and tax for the reporting quarter grew 5.5% sequentially and 24% annually to INR 4.35 billion. Its EBIT margin for the quarter expanded to 15.2% from 14.8% in the trailing quarter. "We remain cautiously optimistic in the near term, and as part of the Lakshya plan, we aspire to deliver 13–15% CAGR (compounded annual growth rate) over the next 5 years with EBIT margins in the range of 16–17%," Amit Chadha, chief executive officer and managing director, said.

The company sustained its momentum in large deal wins, delivering an average total deal contract value of around $200 million for six consecutive quarters, Chadha said. In the financial year 2025-26 (Apr-Mar), it recorded total large deals at $855 million, up 40% on year. "In Q4 (Jan-Mar), the majority of the wins came from Mobility and Sustainability, laying a pathway for robust growth in these segments in the current fiscal," Chadha said. In the quarter, the company booked a deal worth $75 million, two deals valued at more than $20 million each, one deal worth $15 million, and three deals of over $10 million each.

Revenue from the company's sustainability segment, which contributed around 36% of its total sales, rose 1.6% on a sequential basis. Its technology and mobility verticals contributed 32% of total sales each during the March quarter. The sales from the mobility segment fell 0.4% on quarter. The sales from the technology segment fell 6.3% sequentially.

On the expenses front, the company's costs related to employee benefits rose 3.5% on quarter and around 9% on year to INR 16.82 billion. This expense head accounted for 69% of the company's total costs. While the other expenses fell 1% on quarter to INR 6.55 billion, the company's tax expenses rose around 13% on quarter to INR 1.16 billion. Its total expenditure for the quarter rose 2% sequentially and 6% on year to INR 24.40 billion.

L&T Tech's headcount rose to 23,830 as of Mar. 31 from 23,308 as of Dec. 31. Its 12-month voluntary attrition fell to 14.7% as of Mar. 31 from 14.8% at the end of the trailing quarter.

For FY26, the company reported a consolidated net profit of INR 12.79 billion, up just 1%. The revenue for the year rose over 14% to INR 109.96 billion. The company will pay a final dividend of INR 40 per share, with May 22 being the record date.

Wednesday, shares of L&T Tech closed 2.5% lower at INR 3,550.20 on the National Stock Exchange. The company detailed its financial results after market hours.  End

Edited by Rajeev Pai

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