L&T Technology Services widens margins in steady Q1, eyes Tech revival
Revenue ticks up 1.5% sequentially to $309.9M. EBIT margin improves 50 bps to 15.7%. $100M deal wins. Sustainability rises 11.3% YoY; Tech segment expected to resume growth from Q2.
— 4 earlier stories on L&T Technology Services Ltd. →What's new
- Revenue of $309.9M, up 1.5% sequentially in constant currency.
- EBIT margin at 15.7%, a 50 bps QoQ improvement.
- Sustainability segment grew 11.3% YoY; Tech segment softened but guided to rebound from Q2.
Why this matters
The quarter shows steady execution with margin improvement and a solid deal pipeline. Sustainability's double-digit growth stands out, while the Tech segment weakness is transient. Guidance for sequential growth through the year keeps the 16-17% margin target within reach, but conversion of deal wins and Tech recovery are the real tests.
What we're watching
- Tech segment growth in Q2 as delayed deals convert.
- Conversion of $100M TCV into revenue.
- Margin trajectory towards the 16-17% aspiration.
The full read
L&T Technology Services posted a steady Q1: revenue of $309.9M, up 1.5% sequentially, EBIT margin of 15.7% — a 50 bps gain. Sustainability grew 11.3% YoY; Mobility recovered 2.3% sequentially. The Tech segment softened on medical programme timing and a telecom deal deferral. Management expects it back to growth from Q2. Deal flow was solid: $100M in TCV wins. Free cash flow hit 153% of net income, and DSO improved to 77 days from 83 days. Guidance: sequential revenue and margin growth through the year. The next test is whether the Tech segment actually rebounds and whether deal wins convert fast enough to sustain momentum.
Questions answered
- How did LTTS perform in Q1 FY27?
- Revenue was $309.9M, up 1.5% sequentially. EBIT margin improved to 15.7%. Free cash flow stood at 153% of net income.
- Which segments drove growth?
- Sustainability led with 11.3% YoY growth. Mobility recovered 2.3% sequentially. The Tech segment softened due to medical program timing and a telecom deal deferral.
- What is the guidance for the rest of FY27?
- Management guided for sequential revenue and margin growth. Tech segment is expected to return to growth from Q2. Long-term aspiration: 13-15% revenue CAGR and 16-17% EBIT margins.
- How much in new deals did LTTS win?
- Total contract value wins were approximately $100 million in Q1.
- What was the cash flow like?
- Free cash flow was 153% of net income. Days sales outstanding improved to 77 days from 83.
- Is LTTS on track to reach its margin target?
- Current margin of 15.7% is 30 bps from the midpoint of the 16-17% target. Management expects sequential improvement, but deal conversion and Tech recovery are key.
L&T Technology Services Ltd.
Latest quarter · Jun 2026
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All notes on LTTS →- 14 Jul 2026 · 9:31 PM IST L&T Technology Services widens margins in steady Q1, eyes Tech revival
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