L&T Technology Services: Starting on a clean slate in FY27F

研报英文原文证据摘录

L&T Technology Services: Starting on a clean slate in FY27F

Global Markets Research

L&T Technology Services LTEH.NS LTTS IN 14 July 2026

EQUITY: TECHNOLOGY

Starting on a clean slate in FY27F Rating Remains Neutral

Target price

Increased fromMaintain Neutral with higher TP of INR3,180 INR 3,180 INR 3,150

1QFY27 – decent performance Closing14 July 2026price INR 3,293

LTTS posted revenue of USD309.9mn (+1.5% q-q, +1.9% y-y in constant currency [cc] terms vs

our estimate of +0.8% q-q in cc; Fig.1). EBIT margin at 15.7% (+50bp q-q, +200bp y-y) was ahead Implied upside -3.4%

of our estimate of 15.4%. LTTS posted deal wins of ~USD100mn (one each in the USD30mn and

USD20mn buckets, and four in the USD10mn+ bucket). EPS at INR33.1 was up 17% y-y. Market Cap (USD mn) 3,631.4

Growth led by sustainability vertical ADT (USD mn) 4.9

Revenue growth was led by the sustainability vertical which grew 4.3% q-q and the mobility vertical

Relative performance chartwhich grew 2.3% q-q. The tech vertical was relatively softer with a 3.1% q-q decline (all figs. in USD

terms). Management noted the following with respect to verticals:

1. The mobility segment showed signs of a recovery despite a dynamic macro environment.

Europe experienced moderation due to its dependence on Asian and Chinese markets,

causing challenges for OEMs and Tier 1s, with some model years being pushed. Across the

industry, customers remain focused on reducing vehicle development timelines and costs.

2. The tech segment operated in measured demand environment in 1Q though this vertical has

large deals in pipeline in advanced stage of closure.

3. The sustainability vertical: despite crude price volatility, customers have not pulled back on

spends though there are small execution delays.