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Informist, Saturday, Jul. 11, 2026

By Shakshi Jain

NEW DELHI – L&T Technology Services Ltd. is expected to post a moderate sequential rise in net profit for the June quarter, supported by a modest expansion in its earnings before interest and tax margin and the depreciation of the rupee against the dollar. The company's revenue is expected to inch up marginally on the back of deal ramp-ups and some recovery in the mobility segment, according to analysts.

L&T Technology's consolidated net profit for the reporting quarter is expected to rise 7.2% sequentially and almost 13% on year to INR 3.56 billion, according to the average of estimates from 13 brokerages. However, this means excluding the profit from discontinued operations and exceptional items reported for the trailing quarter, the company's bottom line is likely to see a paltry decline of 0.3% for the June quarter. The highest net-profit estimate is INR 3.67 billion from PhillipCapital (India) Pvt. Ltd., and the lowest is INR 3.38 billion from ICICI Securities Ltd.

L&T Technology had recorded a profit of INR 127 million from discontinued operations for the March quarter and a one-time expense of INR 370 million from the closure of certain overseas businesses as part of restructuring. 

The Vadodara-headquartered company's consolidated revenue is expected to grow 2% sequentially and 1.7% on year to INR 29.15 billion for the June quarter, as per the average of estimates. The top-line estimates are in a tight range--the highest INR 29.5 billion from Axis Securities Ltd. and the lowest INR 28.58 billion from Centrum Broking Ltd.

"Sequential revenue growth would be led by sustainability vertical and stability in mobility segment while hi-tech vertical is likely to remain under pressure due to residual impact of reprioritisation of low margin business," Kotak Securities Ltd. said in an earnings preview report. ICICI Securities outlined a similar view, adding the brokerage anticipated a robust deal pipeline, given two of the three segments are expected to have seen an "increased momentum."

In constant currency terms, brokerages expect Larsen & Toubro subsidiary's revenue to grow 0.8-1.5% sequentially for the June quarter. In dollar terms, the company's revenue for the reporting quarter is likely to rise slightly to $307.96 million from $306 million in the March quarter, according to the average of estimates from 10 brokerages. The projections range from $305 million by Indsec Securities and Finance Ltd. to $311 million by IDBI Capital Market Services Ltd. 

Emkay Global Financial Services Ltd. estimates a (-) 60 basis point cross-currency impact on dollar revenues of the company for the June quarter.

If consensus estimates hold, the company's bottom line as well as top line will rise for the second consecutive quarter, although at a slower sequential pace than in the trailing quarter. For the March quarter, L&T Technology had reported a consolidated net profit of INR 3.32 billion on revenues of INR 28.58 billion.

MARGIN MOVEMENT

L&T Technology's earnings before interest and tax margin for the June quarter are expected to expand 20 bps sequentially to 15.4%, according to the average of estimates from 12 brokerages. On the lower end of the estimate range, Centrum Broking expects the metric to remain unchanged at 15.2%. On the upper end, Anand Rathi Share and Stock Brokers Ltd., IDBI Capital Market Services, and Kotak Securities anticipate a 30-bps expansion.

This margin expansion is anticipated on the back of operating leverage from revenue growth, rationalisation of low-margin portfolio, and a weaker rupee in the June quarter. In the trailing quarter, L&T Technology had completed its portfolio restructuring, including divestment of the Smart World and Communication business and the exit of about $19 million annualised low-margin, non-strategic engagements across geographies.

In the conference call with analysts following the March-quarter earnings announcement, L&T Technology Chief Financial Officer Rajeev Gupta had said the company will see an improved segment mix with the sustainability segment contributing 36% of overall revenues in 2025-26 (Apr-Mar). He had added the recent deal wins would allow this trend to continue in FY27, leading to improvement in overall margins.

The rupee appreciated 0.2% against the dollar by the end of the June quarter. However, it had traded lower for most of the three months, touching an intraday low of INR 96.96 on May 20.

L&T Tech will announce its June quarter earnings Tuesday. Market participants will watch out for management commentary on deal pipeline build-up by segments, conversion timelines, demand in the mobility segment, and progress on realigning the company portfolio with Lakshya 31 priorities.

Under the five-year Lakshya 31 plan, L&T Technology aims to achieve a 13-15% compound annual growth rate in terms of dollar revenue with EBIT margin of 16-17%.

Friday, shares of L&T Technology closed almost 2% higher at INR 3,278.20 on the National Stock Exchange. The stock has fallen nearly 8% since the company reported its March-quarter earnings. It has fallen almost 31% from the record high of INR 4,726 reached on Dec. 4.

Of the 11 research reports on L&T Technology available with Informist, eight have a "hold" recommendation on the stock with an average target price of INR 3,826. This is around 17% higher than Friday's closing price. Of the remaining three, two have a "buy" recommendation, and one has a "sell" call. The average target price of the "buy" recommendations is INR 3,660, which is about 12% higher than Friday's closing price. Out of 11 reports, only two were updated in July and the remaining were updated in April.
 

Following are the June quarter earnings estimates, in INR billion, for L&T Technology Services from 13 brokerages in descending order of the estimate of net profit:

End

US$1 = INR 95.32

Edited by Himanshi Gupta

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