India · Delayed Price · Currency is INR L&T Technology Services Earnings Call Transcripts
Fiscal Year 2026
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FY 2026 saw 8.3% revenue growth from continuing operations, margin expansion, and strong large deal wins. The company completed portfolio restructuring, set a 13%-15% five-year CAGR target, and expects further margin improvement, driven by AI and digital engineering bets.
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Q3 FY2026 featured a strategic shift to high-margin engineering intelligence, driving EBIT margin up 120 bps to 14.6% despite a 3.2% sequential revenue decline. Restructuring is set to conclude by March 2026, with mid-single-digit growth and margin improvement expected.
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Q2 saw record large deal wins and double-digit revenue growth, with strong performance in Sustainability and Tech segments. EBIT margin improved, and H2 is expected to outperform H1, with double-digit growth and margin expansion targeted for FY26.
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Revenue grew 13.6% year-over-year, led by sustainability and tech segments, while sequential decline was driven by SmartWorld seasonality and automotive headwinds. Large deal wins and a robust pipeline support double-digit growth and margin improvement in H2.
Fiscal Year 2025
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Achieved record annual revenue, highest-ever deal wins, and strong growth in Tech and Sustainability segments. Despite macro headwinds and margin pressures, double-digit revenue growth is guided for FY26, with continued large deal momentum and improved cash flows.
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Q3 FY25 delivered strong revenue and margin growth, led by Tech and Sustainability, while Mobility faced headwinds. Intelliswift acquisition expands capabilities and addressable markets. FY25 guidance reaffirmed with robust deal pipeline and margin aspirations.
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Q2 FY25 saw 4.5% sequential and 7.8% year-over-year revenue growth, led by strong deal wins and broad-based segment performance. EBIT margin was 15.1%, impacted by strategic investments, but guidance for 8–10% revenue growth and 16% EBIT margin for FY25 is reaffirmed. Mobility faces seasonal softness in Q3, while Sustainability and Tech are expected to ramp up.
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Q1 FY25 saw 6% YoY revenue growth but a 3% sequential decline due to Smart World seasonality. Large deal wins, robust AI-driven innovation, and a strong pipeline support 8%-10% organic growth guidance and 16% EBIT margin aspiration for FY25.