LTTS Q2 Results: Profit Jumps 66.8% to ₹548 Crore; ₹20 Dividend Declared

L&T Technology Services (LTTS) posted a 66.8% year-on-year rise in net profit to ₹548.2 crore in its LTTS Q2 results, released on Monday, 19 October, helped by a one-time divestment gain.

Revenue rose 12.1% year-on-year to ₹3,040.4 crore from ₹2,713.3 crore, and grew 3.4% quarter-on-quarter. The company also declared an interim dividend of ₹20 per share, with 27 October as the record date.

Profit included a one-off gain of ₹165 crore from the sale of its SWC business. Excluding this gain, net profit rose 16.5% year-on-year, according to Business Standard. Both revenue and profit beat Bloomberg consensus estimates of ₹3,007.7 crore and ₹378.4 crore respectively.

LTTS Q2 results: margins and deal wins

Dollar revenue came in at $317.1 million, according to the company’s Q2 FY27 press release. It was up 4.8% year-on-year and 2.7% quarter-on-quarter in constant currency.

EBIT margin rose to 16.3%. That is 60 basis points higher than the June quarter and 220 basis points higher than a year ago.

Large deal wins had a total contract value of more than $200 million, with AI-related deals making up over half. The wins included one deal of $75 million, one of more than $30 million, one of $25 million and six of more than $10 million each.

The company said annualised revenue from its Engineering Intelligence (EI)-led solutions reached $120 million by the end of the quarter. CEO and Managing Director Amit Chadha said LTTS expects revenue momentum “to strengthen further in H2”.

L&T Technology Services profit drivers and segments

Sustainability, which makes up about 38% of revenue, was the best-performing segment, with year-on-year growth of 13.4% and sequential growth of 4.9%. Its EBIT margin stood at 29.5%, according to an earnings call summary published by GuruFocus. Mobility revenue rose 2.3% quarter-on-quarter, while the Tech segment was broadly flat.

All regions except Europe grew year-on-year, Business Standard reported. Offshore work accounted for 55.9% of revenue and fixed-price contracts for 35.6%, according to the earnings call summary.

Earnings per share for the quarter were ₹35.78. Free cash flow for the year to date stood at ₹790 crore, or 108% of net income, while days sales outstanding rose to 78 days from 77 days in the June quarter.

Headcount closed the quarter at 24,035 after a net addition of 190 employees, and attrition was 14.7%. Cash and investments increased to ₹4,197 crore from ₹3,394 crore at the end of the June quarter.

LTTS is a listed subsidiary of Larsen & Toubro and offers engineering and R&D services to customers across mobility, sustainability and hi-tech. Comparable companies include Tata Elxsi, which reported its September quarter results last week.

What the LTTS dividend and outlook mean for investors

The LTTS Q2 results bring the company’s operating margin within the 16–17% EBIT range it is targeting. For enterprise technology buyers and investors, the AI share of deal wins is the figure to watch, as more than half of large deal value this quarter came from AI-related projects.

Currency movements also lifted reported numbers. LTTS realised an average rate of ₹95.9 per US dollar in the quarter, a 1.09% depreciation over the June quarter, which helps explain the gap between rupee revenue growth of 12.1% and constant-currency growth of 4.8%.

Management has set a medium-term aspiration of 13–15% revenue CAGR and 16–17% EBIT margins. Near-term margins are expected to stay around the mid-16% level, though wage hikes planned for the December quarter could reduce margins by 50–80 basis points, according to the earnings call.

Shareholders on record as of 27 October will receive the ₹20 interim dividend. Investors will also track whether the expected second-half pickup in revenue materialises as recently won large deals ramp up. More earnings coverage is available in our Business News section.