LTTS Q2 Net Profit Surges 54% to ₹548 Crore, Beats Street Estimates

The September quarter was a clear outlier for L&T Technology Services. Net profit hit ₹548.2 crore, outpacing the market consensus by nearly ₹190 crore. Revenue stood at ₹3,040 crore, a 3.4% rise from the June quarter’s ₹2,940.1 crore. It beat the expected ₹3,022.5 crore, signaling stronger-than-anticipated demand despite a flat global tech spend environment.

Operational efficiency drove the bottom line. EBIT grew 7.7% sequentially to ₹497 crore, surpassing the ₹483 crore estimate. The EBIT margin expanded to 16.3% from 15.7% in the prior quarter, clearing the 16% benchmark. In dollar terms, revenue reached $317.1 million, up 3.3% year-on-year. Adjusting for currency fluctuations, the underlying growth was 4.8% YoY.

CEO and MD Amit Chadha pointed to a strengthening pipeline for the second half of FY27. He cited a growing order backlog and improving opportunities across regions. The company targets 13-15% annual revenue growth over the next five years while maintaining EBIT margins between 16% and 17%. This guidance provides a clear roadmap for investors tracking mid-cap engineering services stocks.

AI is no longer a buzzword for LTTS; it’s a revenue driver. The firm secured large deals totaling over $200 million in the quarter. More than half of this value came from AI-related projects. Specific wins included a $75 million contract and another worth over $30 million. The Sustainability business showed its strongest growth, while gross margins improved across all three segments.

The board declared an interim dividend of ₹20 per equity share for FY27. The record date is set for October 27, 2026. LTTS also launched an Engineering Intelligence Lab with NVIDIA, focusing on physical AI for manufacturing and robotics. The company now holds 1,808 patents, with 250 filed specifically for AI applications. With a workforce of 24,035 employees, the scale supports its ambitious expansion plans.