L&T Technology Services LimitedQ1 FY27 Results & Financial Update
L&T Technology Services Limited: Q1 FY27 consolidated results and company financials – revenue ₹2,940.10 Cr, PAT ₹357.10 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore L&T Technology Services Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Profit before tax was ₹476.00 Cr for the reported quarter. EPS was ₹33.59 for the reported quarter.
Revenue came in at $310 Mn, growing 1.5% sequentially and 1.9% YoY on a constant currency basis. In rupee terms, revenue was Rs 2,940 crores, up 2.9% sequentially and 11.5% YoY. EBIT margin stood at 15.7%, up 50 bps QoQ and 200 bps YoY.
Net income for the quarter was Rs 352 crores, representing 12% of revenue and an increase of 1.5% sequentially and 17.4% YoY. EPS from continuing operations was Rs 33.17, translating to an annualized EPS of Rs 132.68.
Sustainability grew 4.3% QoQ and 11.3% YoY to remain the most profitable segment at 29.1% margin. Mobility grew 2.3% sequentially with margins at 15.6%. Tech experienced a softer quarter due to program conclusions and delays, but expects growth to resume from Q2.
Reported constant currency revenue growth of 1.5% sequentially and 1.9% YoY, with total revenue reaching $309.9 million (or 2,940 crores). EBIT margin expanded by 50 bps QoQ and 200 bps YoY to 15.7%, driven by operational discipline, portfolio mix, and SG&A management.
Management highlighted ongoing transformation from an engineering services firm to an engineering intelligence solutions provider, anchored by platforms like Ainfonix, PlxAI, and AgenticIQ, alongside new strategic partnerships with Anthropic and Databricks.
01 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹2,940.10 Cr |
| Total income | ₹2,969.20 Cr |
| Profit before tax | ₹476.00 Cr |
| Profit after tax | ₹357.10 Cr |
| EPS | ₹33.59 |
02 · Why it moved
Why the quarter looked the way it did
What drove margins
Time and Materials (T&M) revenue mix decreased to 64.9% in Q1 as the company shifted focus toward favorable fixed-price and outcome-based engagements.
EBIT margins expanded to 15.7% through operational excellence, disciplined SG&A management, and higher-margin contributions from Sustainability and Mobility.
Effective tax rate for Q1 was 26%, with full-year ETR expected to remain in the range of 26.2% to 26.7%.
Management reaffirmed confidence in achieving a mid-16% EBIT margin target on or before Q4 FY27, supported by high-margin segment growth, Engineering Intelligence delivery efficiencies, and disciplined SG&A.
03 · Demand, customers & order book
Where demand is coming from
The company recorded large deal TCV wins of nearly $100 Mn in Q1, with additional anticipated large deal closes shifting from late Q1 into early Q2.
The company reported an increase in the number of $20 Mn+ and $10 Mn+ client accounts compared to the previous quarter.
Recorded large deal TCV wins of nearly $100 million in Q1, with several expected deals shifting slightly from late Q1 to early Q2. The pipeline remains healthy across Mobility, Sustainability, and Tech segments.
04 · Segments, products & geography
Which parts of the business are doing the work
Geography and market mix
North America continued to grow sequentially alongside ROW and India, whereas Europe demonstrated slight moderation during the quarter.
05 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
LTTS inaugurated Europe's first Engineering Intelligence Center in Munich to support AI-led engineering and manufacturing transformations globally.
Total headcount remained steady at 23,845 employees in Q1 compared with 23,830 in Q4, while attrition remained range-bound at 14.7%.
06 · Reported developments
What changed operationally
Free cash flow for Q1 FY27 reached Rs 540 crores, representing 153% of net income, supported by working capital improvements and combined DSO reduction from 83 days to 77 days.
LTTS announced a strategic partnership with Anthropic to integrate Claude models across engineering processes and launched platforms such as Ainfonix for the process industry and AgenticIQ.
Sustainability continued its strong trajectory, delivering 4.3% QoQ and 11.3% YoY growth, supported by robust execution in Plant Engineering and Industrial Products.
Free cash flow for Q1 FY27 reached ₹540 crores, representing 153% of net income, aided by a 6-day improvement in combined DSO down to 77 days.
07 · Pressure points & risks
What is not going smoothly
The Tech segment faced a sequential decline in revenue contribution as a specific medical program concluded and the start of a replacement program was temporarily delayed, alongside some large deal wins shifting into early Q2.
Other income declined to Rs 14.7 crores for the quarter, primarily driven by forex and hedge losses offsetting benefits from rupee depreciation.
Europe demonstrated slight moderation during the quarter amid ongoing macroeconomic challenges for OEMs, while Mobility segment margins experienced a slight dip to 15.6% due to on-site ramp-ups of new programs.
08 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Combined DSO improved by 6 days to 77 days, while cash and investments stood at Rs 3,394 crores at the end of Q1 FY27 compared to Rs 3,555 crores at the end of Q4 FY26.
Combined DSO improved to 77 days from 83 days in Q4, with billed DSO reaching 57 days. Total cash and investments stood at ₹3,394 crores at the end of Q1 FY27.
09 · Management guidance & targets
What management is targeting from here
Management reaffirmed its 5-year strategic aspiration of delivering 13-15% revenue CAGR while maintaining EBIT margins between 16% and 17%, aiming for a mid-16% EBIT margin on or before Q4 FY27.
Management explicitly confirmed its expectation of double-digit growth for the Sustainability segment for the full fiscal year FY27.
Reaffirmed aspiration of delivering 13-15% CAGR for revenue over the next 5 years while maintaining EBIT margins in the 16-17% range.
10 · Management call deep dive
What management said on the conference call
Operating takeaways
17 key pointsNorth America continued to grow sequentially alongside ROW and India, whereas Europe demonstrated slight moderation during the quarter.
Time and Materials (T&M) revenue mix decreased to 64.9% in Q1 as the company shifted focus toward favorable fixed-price and outcome-based engagements.
The company recorded large deal TCV wins of nearly $100 Mn in Q1, with additional anticipated large deal closes shifting from late Q1 into early Q2.
The company reported an increase in the number of $20 Mn+ and $10 Mn+ client accounts compared to the previous quarter.
LTTS inaugurated Europe's first Engineering Intelligence Center in Munich to support AI-led engineering and manufacturing transformations globally.
Total headcount remained steady at 23,845 employees in Q1 compared with 23,830 in Q4, while attrition remained range-bound at 14.7%.
EBIT margins expanded to 15.7% through operational excellence, disciplined SG&A management, and higher-margin contributions from Sustainability and Mobility.
Effective tax rate for Q1 was 26%, with full-year ETR expected to remain in the range of 26.2% to 26.7%.
Combined DSO improved by 6 days to 77 days, while cash and investments stood at Rs 3,394 crores at the end of Q1 FY27 compared to Rs 3,555 crores at the end of Q4 FY26.
Management reaffirmed its 5-year strategic aspiration of delivering 13-15% revenue CAGR while maintaining EBIT margins between 16% and 17%, aiming for a mid-16% EBIT margin on or before Q4 FY27.
Management explicitly confirmed its expectation of double-digit growth for the Sustainability segment for the full fiscal year FY27.
Effective tax rate for Q1 was 26%, with management expecting full-year ETR to remain within the 26.2% to 26.7% range.
Recorded large deal TCV wins of nearly $100 million in Q1, with several expected deals shifting slightly from late Q1 to early Q2. The pipeline remains healthy across Mobility, Sustainability, and Tech segments.
Inaugurated Europe's first Engineering Intelligence Center in Munich to bolster AI-led engineering and manufacturing transformation capabilities globally.
Management reaffirmed confidence in achieving a mid-16% EBIT margin target on or before Q4 FY27, supported by high-margin segment growth, Engineering Intelligence delivery efficiencies, and disciplined SG&A.
Combined DSO improved to 77 days from 83 days in Q4, with billed DSO reaching 57 days. Total cash and investments stood at ₹3,394 crores at the end of Q1 FY27.
Reaffirmed aspiration of delivering 13-15% CAGR for revenue over the next 5 years while maintaining EBIT margins in the 16-17% range.
Important analyst Q&A
4 key pointsManagement noted that investments in EV, hybrid architectures, and AI-enabled Software-Defined Vehicles (SDV) are driving traction across Automotive, Trucks & Off-Highway, and Aero & Rail subsegments.
In response to analyst inquiries regarding AI integration, executives explained that EI tools are embedded directly into client bids to deliver productivity improvements while capturing market share.
Management explained that prior investments in EV, hybrid architectures, and AI-enabled Software-Defined Vehicles (SDV) are driving resilience and growth in Mobility despite broader industry headwinds.
Discussed how AI tools (such as PlxAI, Ainfonix, and Claude integrations) are deployed to pass on required productivity gains while expanding market share and securing complex owner's engineering mandates.
11 · Key Q&A
The quarter, answered directly
What is the clearest takeaway from Q1 FY27?
Profit before tax was ₹476.00 Cr for the reported quarter. EPS was ₹33.59 for the reported quarter.
What drove revenue or demand?
The company recorded large deal TCV wins of nearly $100 Mn in Q1, with additional anticipated large deal closes shifting from late Q1 into early Q2.
What mattered most for margins or profitability?
Time and Materials (T&M) revenue mix decreased to 64.9% in Q1 as the company shifted focus toward favorable fixed-price and outcome-based engagements.
What changed operationally beyond the headline numbers?
LTTS inaugurated Europe's first Engineering Intelligence Center in Munich to support AI-led engineering and manufacturing transformations globally.
What is management guiding or targeting from here?
Management reaffirmed its 5-year strategic aspiration of delivering 13-15% revenue CAGR while maintaining EBIT margins between 16% and 17%, aiming for a mid-16% EBIT margin on or before Q4 FY27.
What are the main pressure points disclosed for the quarter?
The Tech segment faced a sequential decline in revenue contribution as a specific medical program concluded and the start of a replacement program was temporarily delayed, alongside some large deal wins shifting into early Q2.
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