L&T Technology Services LimitedQ2 FY27 Results & Financial Update
L&T Technology Services Limited: Q2 FY27 consolidated results and company financials – revenue ₹3,040.40 Cr, PAT ₹548.70 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
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Quarterly Results AnalysisExplore L&T Technology Services Q2 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
L&T Technology Services reported consolidated revenue from operations of ₹3,040.4 crore for the quarter ended September 30, 2026, marking a sequential increase of 3.4% compared to ₹2,940.1 crore in the preceding quarter (Q1 FY27). In constant currency terms, USD revenue expanded by 2.7% sequentially to $317.1 million.
Basic earnings per share (EPS) for continuing and discontinued operations combined rose to ₹51.67 for the quarter, compared to ₹33.59 in the previous quarter. Basic EPS specifically for continuing operations was ₹35.78.
Segment performance demonstrated broad-based expansion, led by the Sustainability segment which grew 4.9% sequentially in revenue and recorded segment results of ₹341.5 crore. The Mobility segment delivered steady growth with segment results of ₹166.4 crore, while Tech segment results stood at ₹107.8 crore.
The board of directors declared an interim dividend of ₹20 per equity share of face value ₹2, with October 27, 2026, set as the record date for determining eligible shareholders.
01 · Business model
What does L&T Technology Services do?
L&T Technology Services Limited (LTTS) is a global engineering research and development (ER&D) services company and a listed subsidiary of Larsen & Toubro Limited. The company provides design, development, testing, and sustenance services across products and processes for global manufacturing, technology, and healthcare enterprises.
Operations are organized into three core segments: Mobility (encompassing automotive, trucks, off-highway vehicles, aerospace, and rail), Sustainability (covering process industry and industrial products), and Tech (comprising medical technology, software and platforms, and media and tech).
The company serves an extensive international client base that includes 69 Fortune 500 companies and 57 top ER&D companies. Revenue is derived through a combination of fixed-price and time-and-material contracts executed across onsite and offshore delivery models, supported by 21 global design centres, 31 sales offices, and 111 innovation labs.
LTTS has been actively scaling its proprietary Engineering Intelligence (EI) framework, offering specialized platforms such as EIOne alongside ecosystem partnerships with major technology and hyperscaler providers to drive digital and AI-native engineering transformations.
02 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹3,040.40 Cr | ₹2,940.10 Cr |
| Total income | ₹3,071.30 Cr | ₹2,969.20 Cr |
| Profit before tax | ₹513.50 Cr | ₹476.00 Cr |
| Profit after tax | ₹548.70 Cr | ₹357.10 Cr |
| EPS | ₹51.67 | ₹33.59 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 18.0% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 16.9% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹30.90 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
03 · Why it moved
Why the quarter looked the way it did
What drove revenue
LTTS closed large deal TCV wins exceeding USD 200 million during the quarter, with AI-related engagements accounting for over 50% of total wins. Notable wins included one USD 75 million deal, one USD 30+ million deal, one USD 25 million deal, and six deals of USD 10+ million each.
Sustainability was the strongest growth driver during the quarter, with revenue contribution expanding to 38.0% of total revenue and sequential growth of 4.9%. Mobility sustained its momentum at 32.3% of revenue, while Tech accounted for 29.7%.
North America remained the primary revenue geography at 60.7% share, registering 2.8% sequential growth. Europe contributed 17.7%, India accounted for 13.4% with 4.0% sequential growth, and Rest of the World represented 8.2%.
What drove margins
s in the investor presentation, EBIT margin improved by 60 basis points sequentially to reach 16.3%, driven by higher operational productivity and favorable segment mix across engineering services.
04 · Demand, customers & order book
Where demand is coming from
Total active clients increased to 430 during the quarter. The number of clients in the USD 50 million+ bracket stood at 1, USD 30 million+ clients at 6, USD 20 million+ clients at 12, USD 10 million+ clients at 29, USD 5 million+ clients at 60, and USD 1 million+ clients at 197.
Major wins included a 5-year agreement with a global telecommunications equipment provider to deploy Engineering Intelligence capabilities, an AI-powered engineering engagement with an automotive technology provider, and an Industry 4.0 framework scaling project with a European food and beverage enterprise.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Encompassing automotive, trucks, off-highway vehicles, aerospace, and rail, this segment generated revenue of ₹981.9 crore (up from ₹948.8 crore in Q1 FY27) and delivered segment results of ₹166.4 crore.
Covering process industry and industrial products, this segment achieved revenue of ₹1,156.6 crore (up from ₹1,090.4 crore in Q1 FY27) with segment results climbing to ₹341.5 crore.
Comprising medical technology, software and platforms, and media and tech, this segment reported revenue of ₹901.9 crore and segment results of ₹107.8 crore.
06 · Strategy & new businesses
How the company is trying to change its growth mix
LTTS launched EIOne, a standardized platform comprising over 100 solutions across engineering, products, manufacturing, and operations. The company also established an EI Lab in partnership with NVIDIA to build Physical AI-native applications for manufacturing, robotics, and supply chain.
The company forged strategic collaborations with Anthropic, NVIDIA, Databricks, and Cognite, alongside launching 'LTTS FARM', a startup engagement platform designed to accelerate commercialization of deep-tech startups.
07 · Reported developments
What changed operationally
The company successfully concluded the transfer of its Smart World and Communication business unit on September 1, 2026, pursuant to a Business Transfer Agreement with AMI Paradigm Solutions Private Limited, recognizing a one-time net-of-tax capital gain of ₹165.0 crore.
LTTS's patent portfolio surpassed 1,808 filings by the end of Q2 FY27, including over 250 AI-related patent filings and 1,085 co-authored patents with clients.
08 · Items worth noticing
The line items that can distort a quick read
Recognition of a one-time net-of-tax capital gain of ₹1,650 million (₹165.0 crore) under discontinued operations following the completion of the transfer of the Smart World and Communication business unit on September 1, 2026.
09 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
10 · Management guidance & targets
What management is targeting from here
Management reaffirmed its long-term aspiration of achieving a 13-15% revenue CAGR with EBIT margins in the 16-17% range over the next five years, supported by strengthening order backlogs and pipeline momentum heading into the second half of the fiscal year.
11 · Previous-quarter changes
What changed since the previous quarter
Revenue from operations increased by 3.4% QoQ to ₹3,040.4 crore, while net profit rose by 53.7% QoQ to ₹548.7 crore, supported by operational growth and the SWC business disinvestment gain.
12 · Key Q&A
The quarter, answered directly
What does L&T Technology Services do?
L&T Technology Services Limited (LTTS) is a global engineering research and development (ER&D) services company and a listed subsidiary of Larsen & Toubro Limited. The company provides design, development, testing, and sustenance services across products and processes for global manufacturing, technology, and healthcare enterprises.
What is the clearest takeaway from Q2 FY27?
L&T Technology Services reported consolidated revenue from operations of ₹3,040.4 crore for the quarter ended September 30, 2026, marking a sequential increase of 3.4% compared to ₹2,940.1 crore in the preceding quarter (Q1 FY27). In constant currency terms, USD revenue expanded by 2.7% sequentially to $317.1 million.
What drove revenue or demand?
LTTS closed large deal TCV wins exceeding USD 200 million during the quarter, with AI-related engagements accounting for over 50% of total wins. Notable wins included one USD 75 million deal, one USD 30+ million deal, one USD 25 million deal, and six deals of USD 10+ million each.
What mattered most for margins or profitability?
s in the investor presentation, EBIT margin improved by 60 basis points sequentially to reach 16.3%, driven by higher operational productivity and favorable segment mix across engineering services.
What changed operationally beyond the headline numbers?
LTTS launched EIOne, a standardized platform comprising over 100 solutions across engineering, products, manufacturing, and operations. The company also established an EI Lab in partnership with NVIDIA to build Physical AI-native applications for manufacturing, robotics, and supply chain.
What is management guiding or targeting from here?
Management reaffirmed its long-term aspiration of achieving a 13-15% revenue CAGR with EBIT margins in the 16-17% range over the next five years, supported by strengthening order backlogs and pipeline momentum heading into the second half of the fiscal year.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
H2 FY27 Revenue Momentum: Monitor revenue growth acceleration in the second half of fiscal year 2027 as large deal wins from recent quarters transition into active execution.
- 02
EBIT Margin Sustainability: Track quarterly EBIT margin trajectory against management's target band of 16-17%.
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