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L&T Tech Q3 Profit Falls 6% Amid Strong Revenue, Deal Wins

L&T Technology Services saw its quarterly profit dip compared to last year, but there's more to the story. The company actually posted strong revenue growth and improved its operational efficiency significantly. They also landed some massive new contracts, showing healthy demand for their services. While the stock market reacted negatively, the underlying business fundamentals appear robust with key segments like Sustainability performing well.

Key Points: LTTS Q3 Profit Dips 6% YoY Despite Revenue Growth

  • Consolidated net profit fell 6% YoY to Rs 303 crore, but rose 2% when excluding labour code impacts
  • Revenue from operations grew 10% YoY to Rs 2,923 crore, showing strong top-line performance
  • EBIT margin improved to 14.6%, a 120 basis point gain from the previous quarter
  • The company secured major deals including a $70 million engagement and maintained an average TCV of $200 million
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L&T Technology Services' Q3 profit falls 6 pc in Q3

L&T Technology Services reports a 6% YoY profit decline in Q3 FY26, but revenue grows 10% and EBIT margin improves to 14.6% with strong deal momentum.

"The sustainability segment continued to grow double-digit on a YoY basis while Mobility is seeing a turnaround. - Amit Chadha, CEO & MD"

Mumbai, Jan 15

L&T Technology Services (LTTS) on Thursday reported a 6 per cent year-on-year (YoY) decline in its consolidated net profit for the third quarter of FY26 (Q3 FY26).

The mid-tier IT services company posted a net profit of Rs 303 crore for the quarter ended December 31, as compared to Rs 322 crore in the same period last financial year (Q3 FY25).

On a sequential basis, profit slipped 8 per cent from Rs 329 crore in the previous quarter (Q2FY26), according to its stock exchange filing.

However, the company said that excluding the impact of labour codes, profit actually rose 2 per cent year-on-year (YoY) to Rs 329 crore.

Revenue from operations increased 10 per cent year-on-year (YoY) to Rs 2,923 crore, compared with Rs 2,653 crore in the year-ago quarter.

The company's EBITDA for the quarter stood at Rs 515 crore, registering a 4 per cent rise quarter-on-quarter.

EBIT margin improved to 14.6 per cent, supported by better operational efficiency and a 120 basis point improvement over the previous quarter.

LTTS reported strong deal momentum during the quarter, securing multiple large contracts.

These included a $70 million engagement from a global original equipment manufacturer, along with deals worth $30 million, $20 million, and five additional contracts each valued above $10 million.

The company said its average total contract value has remained around $200 million for five consecutive quarters.

Commenting on the performance, CEO and Managing Director Amit Chadha said the company continues to see double-digit growth in its Sustainability segment, while the Mobility business is showing signs of recovery.

"The sustainability segment continued to grow double-digit on a YoY basis while Mobility is seeing a turnaround," Chadha mentioned.

Chadha also said the company is focusing on high-growth and high-margin areas under its five-year Lakshya plan, which is already contributing to improved profitability.

By the end of Q3 FY26, LTTS' patent portfolio reached 1,655 patents, of which 1,007 were co-authored with clients.

The company's total employee strength stood at 23,639, it added in its exchange filing.

In the stock market, LTTS shares closed 1.8 per cent lower at Rs 4,240 on the National Stock Exchange.

- IANS

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Reader Comments

P
Priya S
As a shareholder, I'm concerned about the sequential profit drop. Q2 to Q3 saw an 8% fall. The deal wins are good, but we need to see that translate to the bottom line. Hope the Lakshya plan delivers soon. 🤞
R
Rohit P
The sustainability segment growing double digits is excellent! This is the future. Indian IT companies need to pivot to these high-value, future-proof areas. LTTS seems to be on the right track with its focus.
S
Sarah B
Interesting to see the strong deal momentum ($70M, $30M contracts) alongside a profit dip. It suggests heavy investment or upfront costs. The patent portfolio of 1655 is impressive – shows real R&D, not just body shopping.
V
Vikram M
The labour code impact is a one-time adjustment. The core business is healthy - revenue up, margins improving, and deal pipeline strong. Stock market is being myopic. This could be a buying opportunity for long-term investors.
M
Michael C
A respectful critique: While the adjusted numbers look better, the reported profit is what matters for dividends and EPS. Companies often highlight "adjusted" metrics to soften bad news. The 1.8% stock drop reflects that reality.
A
Ananya R

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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