L&T Technology Services Limited (LTTS), India’s leading engineering and R&D services company, announced its Q2 FY26 (July–September 2025) results on October 17, 2025. The company posted strong revenue growth, driven by robust deal wins and increasing adoption of AI-driven engineering solutions, while profit growth remained moderate due to continued investments in innovation and digital platforms.
The quarter also saw a record Total Contract Value (TCV) of nearly $300 million, reflecting LTTS’s healthy demand pipeline and expanding global footprint across industrial, transportation, and technology sectors.
In this article, we take a detailed look at LTTS’s Q2 FY26 performance, including revenue trends, profitability analysis, key deals, and the company’s strategic focus areas for sustaining growth in the rapidly evolving engineering services market.
Key Highlights
| Metric | Q2 FY26 | Q2 FY25 | YoY Growth |
|---|---|---|---|
| Revenue (from Operations) | ₹2,980 crore | ₹2,574 crore | +15.8% |
| Net Profit (PAT) | ₹329 crore | ₹320 crore | +2.8% |
| EBITDA (Approx.) | ₹515 crore | ₹460 crore | +12.0% |
| Earnings Per Share (EPS) | ₹31.3 | ₹30.4 | +3% |
Note: Figures are consolidated; EBITDA derived from operating margin of ~17.3%.
Management Commentary
Commenting on the performance, Amit Chadha, CEO & Managing Director of LTTS, said:
“Q2 FY26 has been another quarter of steady execution with broad-based growth across verticals. Our record TCV of nearly $300 million demonstrates client confidence in LTTS’s engineering-led digital and AI capabilities. We continue to invest in GenAI, Agentic AI, and sustainability solutions to position ourselves for next-gen growth.”
He also reaffirmed the company’s commitment to double-digit revenue growth for FY26 and highlighted ongoing efforts to expand AI monetization to 5% of total revenue by the end of FY26.
Segment Performance
1. Transportation and Industrial Products
- Remained the largest contributor to LTTS’s revenue.
- Strong ramp-ups in plant engineering and industrial automation projects across Europe and North America.
- Demand for EV and autonomous vehicle solutions continued to accelerate.
2. Hi-Tech and Medical Devices
- The Hi-Tech segment benefited from the integration of Intelliswift, driving growth in digital engineering.
- Medical Devices segment witnessed temporary softness in the US market but is expected to recover in H2 FY26.
3. Plant Engineering and Process Industries
- Registered double-digit growth, supported by increased investments in sustainability, renewables, and smart manufacturing.
4. Energy and Sustainability
- The sustainability vertical expanded 12.6% YoY, reflecting LTTS’s growing focus on clean energy solutions and industrial decarbonization projects.
Market Reaction
Following the results announcement, LTTS shares gained around 2–3%, reflecting investor optimism over the strong order pipeline and improving operational performance. The company’s continued dividend payout — ₹18 per share interim dividend — also boosted sentiment.
However, analysts noted that profit growth remained muted due to higher employee costs and ongoing R&D investments. Market participants expect stronger profit momentum in H2 FY26 as new deals ramp up.
Peer Comparison
In comparison to other Indian IT and engineering service firms like Tata Elxsi, Cyient, and KPIT Technologies, LTTS continues to stand out for its diverse industrial client base and AI-led differentiation.
While peers such as KPIT benefit from auto-specific exposure, LTTS’s multi-sector portfolio — spanning energy, manufacturing, and technology — provides resilience and long-term scalability.
Future Outlook
- Growth Targets: LTTS aims for double-digit revenue growth for FY26 and a medium-term milestone of $2 billion annual revenue.
- AI Expansion: The company is investing heavily in GenAI and Agentic AI platforms, targeting 5% of total revenue from AI-led offerings by FY26-end.
- Margins: EBIT margin stable at 13.4%, expected to gradually improve in H2 with operational leverage.
- H2 Acceleration: Management guided that H2 FY26 performance will outpace H1, led by deal ramp-ups and improving profitability.
- Dividend: Declared ₹18 per share interim dividend (record date: October 24, 2025), reflecting continued shareholder commitment.
Brokerages maintain a positive outlook, citing strong order momentum, healthy cash flows, and AI-driven differentiation.
FAQs
1. What was LTTS’s net profit in Q2 FY26?
LTTS reported a net profit of ₹329 crore, up 2.8% YoY, supported by strong revenue growth but moderated by higher investment spending.
2. Did LTTS beat market expectations?
Yes, the company’s revenue and deal wins exceeded Street estimates, though profit growth was slightly below some projections due to cost increases.
3. How did LTTS’s margins perform this quarter?
Operating (EBIT) margin stood at 13.4%, broadly stable YoY, reflecting efficient cost management despite elevated R&D investments.
Conclusion
L&T Technology Services (LTTS) posted a strong Q2 FY26 performance, driven by broad-based growth across industries, record deal wins, and continued momentum in AI-driven engineering. While profit growth was modest, the company’s robust pipeline, expanding AI monetization, and healthy dividend payout reinforce its leadership in the engineering services space.
With double-digit growth guidance and a sharp focus on innovation, LTTS remains well-positioned for sustainable value creation in FY26 and beyond.
Sources: LTTS Investor Presentation
