L&T Technology Services Reports $203 Million in Large Deal Wins, Over Half Driven by AI-Led Growth

L&T Technology Services Delivers Strong Q2 FY27 Results with AI-Led Growth

L&T Technology Services reported robust Q2 FY27 results with revenue of $317.1 million, representing 4.8% year-over-year growth in constant currency and 2.7% sequential growth1

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. The engineering research and development services company achieved revenue of ₹30,404 million, marking 12.1% year-over-year growth and 3.4% quarter-on-quarter expansion2

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. Net profit surged 66.8% year-over-year to ₹5,482 million, though this included a one-time gain of ₹1,650 million from the disinvestment of the SmartWorld & Communications business3

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. Excluding this gain, net income from continuing operations reached ₹3,796 million, up 19.7% year-on-year3

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Large Deal Wins Showcase AI-Led Revenue Momentum

The company secured large deal wins totaling $203 million in total contract value during Q2 FY27, with AI-related deals accounting for over 50% of this total2

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. These wins included one $75 million deal, one deal exceeding $30 million, one $25 million deal, and six deals worth more than $10 million each1

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. CEO Amit Chadha noted that "large deal wins from earlier quarters are converting into revenue, and we are continuing to have a robust pipeline of the same"1

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. The company's deal pipeline increased more than 25% year-over-year, positioning it for stronger revenue momentum in the second half of FY274

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Engineering Intelligence Platform Drives AI-Led Revenue

L&T Technology Services reported $120 million in annualized revenue from Engineering Intelligence-led solutions, representing approximately 9.5% of quarterly revenue1

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. The company's EIOne platform now includes over 100 solutions spanning engineering, products, manufacturing, and operations2

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. More than 16,000 engineers, representing approximately 67% of the workforce, have been upskilled in AI capabilities3

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. Management highlighted that AI is embedding across the engineering lifecycle through a human-plus-agent delivery model, with one major engagement helping clients accelerate time to market by 50%, with 40% of code generated by AI3

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Partnership with NVIDIA Accelerates Physical AI Applications

L&T Technology Services launched an Engineering Intelligence Lab in partnership with NVIDIA to develop Physical AI-native applications for manufacturing, robotics, and supply chains1

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. Industrial AI applications are being tested in factory optimization, with Shodh AI reducing a factory optimization task from 500 hours to just 5.6 hours1

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. The company also established strategic partnerships with Anthropic, Databricks, and leading hyperscalers to strengthen its AI capabilities3

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. An AI-led engagement with a global telecom equipment provider to design systems for AI data centers began ramping up during the quarter1

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EBIT Margin Expansion Exceeds Targets Ahead of Schedule

L&T Technology Services achieved an EBIT margin of 16.3%, marking a 60 basis point improvement sequentially and 220 basis points year-over-year1

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. This margin expansion reached the company's mid-16% aspiration two quarters ahead of schedule3

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. Gross margins improved across all business segments, with gross profit increasing 5.6% quarter-on-quarter to ₹9,851 million, yielding a 32.4% gross margin3

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. Management expects margins to remain in the mid-16% range even after wage hikes in the third quarter, which are projected to reduce margins by 50 to 80 basis points4

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AI Patent Filings Strengthen Innovation Portfolio

The company reported more than 250 AI patent filings during the quarter, bringing its total patent portfolio to 1,808, including 1,085 co-authored with clients1

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. This aggressive intellectual property strategy positions L&T Technology Services to compete in the evolving AI landscape while demonstrating tangible innovation output to clients. The company also launched FARM, a startup engagement platform designed to accelerate commercialization of deep-tech startups through Engineering Intelligence-led collaboration3

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Investor Sentiment Remains Cautious Despite Strong Performance

Despite beating earnings per share forecasts by approximately 1.6% with EPS of ₹35.78 versus the expected ₹35.21, the stock declined 2.78% to $3,611.30 following the announcement3

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. The market reaction suggests investor caution around near-term headwinds, including upcoming wage inflation and weakness in certain segments3

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. Investors may be waiting for clearer proof that second-half growth will accelerate, despite management's comments that Q3 could be muted in some parts of the business4

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. Free cash flow for the first half totaled ₹7,896 million, representing 108% conversion of net income, demonstrating strong cash generation3

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Outlook Points to Stronger Second-Half Revenue Growth

Management expects revenue momentum to strengthen in the second half of FY27 as large deals ramp up and earlier wins convert into revenue1

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. The company reiterated its aspiration to achieve a revenue CAGR of 13% to 15% with EBIT margins of 16% to 17% over the next five years1

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. Segment performance varied, with Sustainability growing 4.9% quarter-on-quarter and representing 38.0% of total revenue, while Mobility grew 2.3% sequentially3

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. The company declared an interim dividend of ₹20 per share with a record date of October 27, 20262

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. Watch for how AI-driven productivity gains translate into sustained revenue growth as clients increasingly seek lower delivery costs, a dynamic shaping expectations across the Indian IT sector.