L&T Technology reports 16.4% revenue growth in Q1 FY26, profit marginally up

L&T Technology Services (LTTS) announced a decent start to fiscal year 2026, with revenue climbing 16.4% year-on-year to ₹2,866 crore for the first quarter. This growth was fuelled by strong deal momentum and consistent demand for its engineering services. However, net profit for the quarter saw a marginal increase of 0.7%, reaching ₹316 crore.

In USD terms, revenue stood at $335.3 million, marking a 13.6% increase compared to the same period last year. The company maintained an EBIT (Earnings Before Interest and Taxes) margin of 13.3% during the quarter.

This quarter marks the third consecutive period in which LTTS has secured large deals with a total contract value (TCV) exceeding $200 million, the company stated in an exchange filing. The new deal bookings for the quarter included one significant $50 million deal, three deals in the $20-30 million range, and six deals exceeding $10 million.

Amit Chadha, CEO and Managing Director of L&T Technology Services, commented, "We commenced the fiscal year with strong momentum in large deals, continuing the trend from the previous quarters with both Europe and U.S. geographies growing on a sequential basis. Our multi-segment diversification strategy has proven resilient, with the Sustainability segment achieving double-digit annual growth.”

Chadha highlighted the increasing role of AI and automation in client engagements, making AI central to their conversations and programs. He noted that LTTS engineers have deployed multiple AI programs for clients and have filed 206 patents in this domain. Additionally, the company is launching PLxAI, a proprietary AI framework designed to accelerate product development lifecycle for global clients. PLxAI, initially incubated in the mobility segment, has now been scaled across other segments.

Backed by an increased order book and a focus on resilience and profitable growth, LTTS expects to achieve double-digit growth in FY26 and maintain its medium-term outlook of $2 billion in revenue.

As of the end of Q1 FY26, L&T Technology Services' patent portfolio stood at 1,550, with 952 co-authored with clients and the remainder filed by LTTS. The company's employee strength was 23,626 at the close of Q1 FY26.

Shares of L&T Technology Services closed at ₹4,343 on the NSE today, down 0.17%.