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L&T Technology Services Ltd.
(LTTS)
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Rating:77Outperform
Price Target:
₹4,538.00
▲(32.77% Upside)
Action:Reiterated
Date:10/22/26
The score is driven primarily by strong financial quality (low leverage, solid profitability, and durable free cash flow) and a constructive earnings outlook with improving margins and strong deal momentum/pipeline. These positives are tempered by elevated technical readings that increase near-term pullback risk and a relatively high P/E valuation, while management also flagged near-term softness in specific segments (notably Europe auto and Q3 tech).
Positive Factors
Conservative Balance Sheet
Low leverage and rising equity provide LTTS with substantial financial flexibility as it scales. Strong ROE of roughly 19–27% also indicates effective capital use, supporting continued investment in engineering capabilities, delivery capacity, and growth opportunities without heavy balance-sheet strain.
Negative Factors
Revenue Slowdown and Margin Pressure
The latest-year revenue decline signals a meaningful pause after several years of expansion, while lower margins indicate that earnings growth has not been fully protected from operating pressure. Sustained softness could reduce reinvestment capacity and make long-term growth targets harder to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and rising equity provide LTTS with substantial financial flexibility as it scales. Strong ROE of roughly 19–27% also indicates effective capital use, supporting continued investment in engineering capabilities, delivery capacity, and growth opportunities without heavy balance-sheet strain.
Read all positive factors
L&T Technology Services Ltd. (LTTS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹382.95B
Dividend Yield1.45%
Average Volume (3M)4.92K
Price to Earnings (P/E)27.5
Beta (1Y)1.01
Revenue Growth2.45%
EPS Growth20.32%
CountryIN
Employees21,039
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)124.53
Shares Outstanding106,086,266
10 Day Avg. Volume7,515
30 Day Avg. Volume4,915
Financial Highlights & Ratios
PEG Ratio30.65
Price to Book (P/B)5.11
Price to Sales (P/S)3.01
P/FCF Ratio24.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹3,700.00Price Target Upside8.25% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)144.56
Revenue Forecast (FY)₹122.12B
L&T Technology Services Ltd. Business Overview & Revenue Model
Company Description
L&T Technology Services Limited (LTTS) delivers engineering, research, and development (ER&D) solutions across various global markets, including North America, Europe, and India. Through its Transportation division, the company furnishes engineeri...
How the Company Makes Money
LTTS primarily makes money by providing engineering services to enterprise clients under contract, earning service revenue for engineering work delivered by its employees and delivery centers. Its revenue model is largely services-led and typicall...
L&T Technology Services Ltd. Earnings Call Summary
Earnings Call Date:Oct 19, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 13, 2027
Earnings Call Sentiment Positive
The call was strongly optimistic, supported by sequential revenue growth, EBIT margin expansion ahead of schedule, substantial large deal wins, double-digit sustainability growth, expanding AI revenue, improved cash generation, and a healthy pipeline. The main cautions were muted Auto Europe demand, near-term technology and medtech softness, upcoming wage-hike impact, regular furloughs, and the delayed conversion of some AI wins into revenue. Management nevertheless reiterated stronger H2 momentum and its long-term growth and margin aspirations.Positive Updates
Sequential Revenue and EBIT Margin Growth
Q2 revenue was $317.1 million, up 2.7% sequentially and 4.8% year-on-year in constant currency on a continuing-operations basis. Revenue in rupee terms was ₹3,040 crores, up 3.4% sequentially and 12.1% year-on-year. EBIT margin improved 60 basis points sequentially and 220 basis points year-on-year to 16.3%, achieving the company's mid-16% aspiration a couple of quarters ahead of schedule.
Negative Updates
Auto Europe Remained Muted and Faced Headwinds
Auto Europe remained muted and contributed headwinds in the current quarter. Management expects the business to remain steady for the next 6 to 9 months, does not foresee further decline, and expects growth to return in approximately 9 to 12 months as European OEMs clarify their technology and vehicle strategies.
Read all updates
Q2-2027 Updates
Positive
Negative
Sequential Revenue and EBIT Margin Growth
Q2 revenue was $317.1 million, up 2.7% sequentially and 4.8% year-on-year in constant currency on a continuing-operations basis. Revenue in rupee terms was ₹3,040 crores, up 3.4% sequentially and 12.1% year-on-year. EBIT margin improved 60 basis points sequentially and 220 basis points year-on-year to 16.3%, achieving the company's mid-16% aspiration a couple of quarters ahead of schedule.
Read all positive updates
Company Guidance
Management expects revenue momentum to further strengthen in H2, with H2 better year-on-year and quarter-on-quarter than H1, while sustaining healthy EBIT margins at around the mid-16% EBIT levels; it does not provide quarter-on-quarter or annual guidance, expects regular furloughs, and said tech will be muted in Q3, with growth coming back beyond that, including systems and platform growth accelerating sometime in Q4 and beyond. The company wants to maintain a $200 million pace for large deal wins, including an extra $100 million in Q3 and Q4, with pipeline up more than 25% year on year; ETR is expected to remain in the range of 26% to 26.5%, DSO is expected to operate in the guided range of 80 to 85 days, and the wage hike impact is expected to be in the range of 50 to 80 bps. LTTS reiterated its aspiration of 13 to 15% CAGR over the next 5 years with margins in the range of 16 to 17%, while European auto is expected to be steady for now, for the next about 6 to 9 months, with growth expected to start coming back in the next 9 to 12 months.L&T Technology Services Ltd. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 117.01B | 109.96B | 106.70B | 96.47B | 88.16B | 65.70B |
| Gross Profit | 33.41B | 15.90B | 48.39B | 45.85B | 41.19B | 27.95B |
| EBITDA | 21.56B | 20.84B | 21.02B | 21.26B | 19.64B | 15.67B |
| Net Income | 13.20B | 12.79B | 12.67B | 13.04B | 12.12B | 9.57B |
Balance Sheet | ||||||
| Total Assets | 102.07B | 104.89B | 96.44B | 84.89B | 81.98B | 60.91B |
| Cash, Cash Equivalents and Short-Term Investments | 14.86B | 30.79B | 25.25B | 26.84B | 27.98B | 20.66B |
| Total Debt | 6.28B | 5.79B | 5.78B | 6.59B | 4.54B | 4.77B |
| Total Liabilities | 36.64B | 39.97B | 35.46B | 31.41B | 37.45B | 19.15B |
| Stockholders Equity | 65.22B | 64.73B | 60.80B | 53.27B | 44.35B | 41.63B |
Cash Flow | ||||||
| Free Cash Flow | 4.14B | 13.71B | 13.70B | 12.40B | 11.30B | 8.44B |
| Operating Cash Flow | 4.81B | 15.56B | 14.81B | 14.93B | 13.05B | 10.06B |
| Investing Cash Flow | -2.03B | -5.58B | -5.09B | -2.33B | -5.72B | -4.48B |
| Financing Cash Flow | -5.02B | -7.85B | -7.18B | -6.58B | -4.43B | -4.98B |
L&T Technology Services Ltd. Technical Analysis
Positive
3417.90
Price Trends
3445.74
Positive
3405.11
Positive
3492.02
Positive
Market Momentum
124.87
Negative
72.21
Negative
79.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LTTS, the sentiment is Positive. The current price of 3417.9 is above the 20-day moving average (MA) of 3395.15, below the 50-day MA of 3445.74, and below the 200-day MA of 3492.02, indicating a bullish trend. The MACD of 124.87 indicates Negative momentum. The RSI at 72.21 is Negative, neither overbought nor oversold. The STOCH value of 79.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LTTS.
L&T Technology Services Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ₹3.86T | 21.04 | ― | 4.21% | 12.76% | 7.96% | |
77 Outperform | ₹382.95B | 27.50 | ― | 1.45% | 2.45% | 20.32% | |
76 Outperform | ₹897.08B | 50.93 | ― | 0.31% | 27.10% | 7.08% | |
73 Outperform | ₹1.28T | 26.78 | ― | 2.51% | 14.67% | 7.26% | |
69 Neutral | ₹286.39B | 49.94 | ― | 1.18% | 21.87% | -18.85% | |
64 Neutral | ₹146.94B | 25.44 | ― | 1.39% | 9.55% | -27.98% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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L&T Technology Services Ltd. Corporate Events
L&T Technology Services Files SEBI Depository Compliance Certificate for Q2 FY2026
Oct 9, 2026
LT Technology Services Ltd. has notified the National Stock Exchange of India and BSE Limited that it has received the quarterly certificate required under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the peri...
L&T Technology Services Wins $75 Million Global Engineering Deal
Aug 19, 2026
LT Technology Services has won a landmark five-year international engagement valued at over $75 million from a leading global technology enterprise. Under the deal, the company will deploy its Engineering Intelligence capabilities across the custo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.