L&T Technology Services Limited Earnings Summary — Q1 FY2027
L&T Technology Services Posts 13% Profit Growth in Q1 FY2027 Led by Sustainability and Mobility Segments
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹2,940 Cr is 11.5% higher year-on-year.
- Revenue has compounded at 6.8% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹357 Cr is 13.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 2.0% annualised across the period.
- Operating margin stands at 18.6% in Q1 FY2027.
- Operating margin expanded by 194 bps year-on-year.
- Over the last two years operating margin has expanded by 12 bps.
- PBT margin is 16.4%.
- Expense growth of 8.9% remained below revenue growth of 11.5%.
- Operating profit of ₹548 Cr is 24.4% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 73/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 2,940 | 2,858 | 2,787 | 2,980 | 2,638 | 2,638 | 2,653 | 2,573 | 2,462 | 2,538 |
| Expenses | Stable | 2,392 | 2,337 | 2,289 | 2,489 | 2,197 | 2,205 | 2,158 | 2,107 | 2,006 | 2,035 |
| Operating Profit | Stable | 548 | 521 | 499 | 491 | 441 | 433 | 495 | 466 | 456 | 503 |
| Operating Margin | Stable | 18.6% | 18.2% | 17.9% | 16.5% | 16.7% | 16.4% | 18.6% | 18.1% | 18.5% | 19.8% |
| Other Income | Volatile | 34 | 31 | 9 | 66 | 83 | 80 | 34 | 65 | 62 | 56 |
| Interest | Stable | 14 | 17 | 15 | 16 | 16 | 16 | 16 | 12 | 13 | 13 |
| Depreciation | Stable | 87 | 87 | 86 | 93 | 81 | 81 | 73 | 78 | 73 | 75 |
| Profit Before Tax | Stable | 481 | 449 | 406 | 448 | 427 | 416 | 440 | 441 | 433 | 471 |
| Tax | Stable | 124 | 116 | 103 | 119 | 111 | 106 | 120 | 121 | 119 | 130 |
| Net Profit | Stable | 357 | 332 | 303 | 329 | 316 | 311 | 322 | 320 | 314 | 341 |
| Net Margin | Stable | 12.1% | 11.6% | 10.9% | 11.0% | 12.0% | 11.8% | 12.2% | 12.4% | 12.7% | 13.4% |
Key Takeaways
- Revenue from operations grew 11.5% YoY to ₹29,401 million, driven by strong performance in the Sustainability and Mobility segments.
- Sustainability emerged as the largest segment by revenue and profitability, contributing ₹10,904 million in revenue with a segment result of ₹3,178 million.
- The Mobility segment maintained steady growth, reaching ₹9,488 million in revenue, up from ₹8,479 million in the same quarter last year.
- Discontinued operations (SWC business) contributed ₹48 million to the bottom line following the Business Transfer Agreement signed in March 2026.
- Employee benefit expenses rose 9.4% YoY to ₹17,131 million, reflecting headcount investments despite the divestment of the SWC unit.
- Net profit margins improved sequentially to 12.1% from 11.6% in the prior quarter (Q4 FY26).
Management Guidance
Management maintains a focus on emerging technologies including Software Defined Vehicles (SDV), GenAI, and Cybersecurity to drive future high-margin engineering services.
Sentiment Shift
Improving
Margins and profitability showed healthy sequential recovery compared to the previous quarter which was impacted by exceptional restructuring costs.
Outlook
The outlook remains robust with a pivot toward complex ER&D services and sustainability-linked engineering, which are showing higher growth momentum than traditional tech segments.
From the Annual Report (Key Quotes)
“Approved the Unaudited Financial Results for the quarter ended June 30, 2026.”
“Sustainability segment encompasses Process Industry and Industrial Products.”
“Exceptional items in previous periods were on account of impact of New Labour Codes and restructuring initiative.”
Official Quarterly Documents
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This summary is AI-generated from L&T Technology Services Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.