L&T Technology Services Reports Strong Q1 FY26 Growth, Launches AI Framework PLxAI

LTTS Records Strong Deal Wins in Q1, Diversifies Portfolio | AIM

With AI becoming central to its strategy and the launch of its proprietary PLxAI framework, LTTS is betting on advanced technologies to fuel its next phase of growth. L&T Technology Services (LTTS) reported a healthy revenue growth for Q1 FY26, clocking ₹2,866 crore, a 16.4% year-on-year (YoY) increase. In dollar terms, the revenue stood at approximately ₹2,799.75 crore, up 13.6% YoY, signalling consistent growth momentum. However, despite the topline growth, profitability improved slightly. EBIT margin slipped to 13.3%, down from 15.6% in Q1FY25, indicating cost pressures or changes in revenue mix. Net profit for the quarter came in at ₹315.7 crore, growing just 0.7% YoY, suggesting limited bottom-line expansion amid rising operational intensity. In comparison, the same quarter last year reported revenue of ₹2,461.9 crore and a net profit of ₹313.6 crore, indicating that while LTTS has accelerated its revenue momentum, margin protection remained a challenge. The Q1 performance also underlined LTTS's continued strength in large deal wins. The company secured multiple strategic engagements, including a $50 million deal, three in the $20-30 million range, and six valued at over $10 million. "We commenced the fiscal year with strong momentum in large deals, continuing the trend from the previous quarters with both Europe and US geographies growing on a sequential basis," Amit Chadha, CEO and MD of LTTS, said in the statement. "Our multi-segment diversification strategy has proven resilient, with the Sustainability segment achieving double-digit annual growth." Meanwhile, he added that the company's 'Go Deeper to Scale' approach, and investments in advanced technologies are strengthening client relationships, besides driving robust large deals. "With AI and automation advancing rapidly, client engagements and deal wins are increasing, making AI central to our conversations and programs," he added. Mentioning that the company's engineers have deployed multiple programs for clients in AI and have filed 206 patents in this domain, Chadha informed that they are launching PLxAI, a proprietary AI framework to accelerate product development lifecycle for global clients. To cater to the increasing demand in specific areas, the company has opened a new design centre in Plano, Texas. The centre specialises in advanced technologies, cybersecurity, and AI, he said. "Backed by an increased order book and a focus on resilience and profitable growth, we expect to clock double-digit growth in FY26 and maintain our medium-term outlook of $2 billion revenue," Chadha said. At the end of Q1, LTTS's patent portfolio stood at 1,550, out of which 952 were co-authored with clients, and the rest were filed by the company. Its employee strength stood at 23,626 at the end of the first quarter.

L&T Tech shares in focus after Q1 profit edges up, revenue rises 16% YoY

Shares of L&T Technology Services (LTTS) will be in focus on Thursday after the company reported a marginal 0.7% year-on-year (YoY) increase in consolidated net profit for the June 2025 quarter at Rs 316 crore, compared to Rs 314 crore in the same period last year. Revenue from operations rose 16% YoY to Rs 2,866 crore from Rs 2,462 crore in Q1FY25. However, revenue declined 4% sequentially from Rs 2,982 crore in the March quarter. Profit after tax (PAT) was up 1.5% quarter-on-quarter from Rs 311 crore in Q4FY25. Dollar revenue for the quarter stood at $335.3 million, down 2.9% QoQ but up 13.6% YoY. In constant currency terms, revenue declined 4.2% QoQ and increased 12.8% YoY. EBIT stood at Rs 381 crore with an EBIT margin of 13.3%. Also Read: 9 undervalued mid-cap stocks with upside potential of up to 23% Commenting on the company's earnings, CEO & Managing Director Amit Chadha said that LTTS exceeded $200 million in large deals TCV for the third straight quarter, continuing its deal momentum in Q1 with one $50 million win, three deals in $20-30 million range, and six over $10 million deals. "In this dynamic macro environment, our multi-segment diversification strategy has proven resilient, with the Sustainability segment achieving double-digit annual growth. The 'Go Deeper to Scale' strategy and investments in new age technologies are leading to stronger partnerships with clients and a robust TCV booking," Chadha said. Chadha said that the company is launching PLxAI, its proprietary AI framework, which accelerates the product development lifecycle for global clients. "PLxAI combines smart prompting, contextual intelligence, and agentic workflows to significantly reduce product lifecycle. PLxAI was originally incubated in the Mobility segment, but has now been scaled and propagated to other segments using our multi-vertical cross-pollination approach," he informed. Also Read: SBI, Federal Bank among 11 banks that saw NPA improvement in Q4 Backed by an increased order book and a focus on resilience and profitable growth, the company expects to clock double-digit growth in FY26 and maintains its medium-term outlook of $2 billion revenue," said Chadha. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

L&T Tech Q1 Results: Cons PAT up marginally YoY, revenue surges 16%

L&T Technology Services reported a marginal 0.7% increase in its June quarter consolidated net profit at Rs 316 crore versus Rs 314 crore reported by the company in the year ago period. Company's revenue from operations in Q1FY26 stood at Rs 2,866 crore compared to Rs 2,462 crore in the corresponding quarter of the last financial year, jumping by 16%. The profit after tax (PAT) was up by 1.5% on the quarter-on-quarter basis versus Rs 311 crore reported in Q4FY25 while the topline fell 4% versus Rs 2,982 crore in the January-March quarter. LTTS' dollar revenue stood at $335.3 million for the quarter under review, declining 2.9% QoQ while rising by 13.6% YoY. In constant currency terms, revenue was down 4.2% QoQ and up 12.8% YoY. The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBIT) was reported at Rs 381 crore in the quarter gone by while EBIT margin stood at 13.3%. Commenting on company's earnings, CEO & Managing Director Amit Chadha said that LTTS exceeded $200 million in large deals TCV for the third straight quarter, continuing its deal momentum in Q1 with one $50 million win, three deals in $20-30 million range, and six in excess of $10 million deals. "In this dynamic macro environment, our multi-segment diversification strategy has proven resilient, with the Sustainability segment achieving double-digit annual growth. The 'Go Deeper to Scale' strategy and investments in new age technologies are leading to stronger partnerships with clients and a robust TCV booking," Chadha said. Chadha said that the company is launching PLxAI, its proprietary AI framework, which accelerates product development lifecycle for global clients. "PLxAI combines smart prompting, contextual intelligence, and agentic workflows to significantly reduce product lifecycle. PLxAI was originally incubated in the Mobility segment, but has now been scaled and propagated to other segments using our multi-vertical cross pollination approach," he informed. Backed by an increased order book and a focus on resilience and profitable growth, the company expects to clock double-digit growth in FY26 and maintains its medium-term outlook of $2 billion revenue," said Chadha. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)