L&T Technology Services Q2 revenue rises 12% as margin hits 16.3%
L&T Technology Services, which helps other companies design, build and test products from cars to medical devices, reported Q2FY27 revenue of Rs 3,040.4 crore, up 12.1% from a year ago, with EBIT margin at 16.3% . Reported net profit jumped 66.8% on a one-time gain from selling its Smart World & Communication business, while core continuing profit grew 19.7%. Total large-deal wins topped $20 crore, with AI-related deals accounting for more than half .
Core sales and margins strengthened; headline profit mixed in a one-time gain
Source: .
| Consolidated, Rs crore | Q2FY26 restated | Q1FY27 | Q2FY27 |
|---|---|---|---|
| Revenue | 2,713.3 | 2,940.1 | 3,040.4 |
| EBIT | 382.4 | 461.3 | 496.6 |
| Continuing PAT | 317.2 | 351.8 | 379.6 |
| Reported net income | 328.7 | 356.6 | 548.2 |
Source: .
| Consolidated margins | Q2FY26 restated | Q1FY27 | Q2FY27 |
|---|---|---|---|
| Gross margin | 29.8% | 31.7% | 32.4% |
| EBITDA margin | 17.5% | 18.7% | 19.3% |
| EBIT margin | 14.1% | 15.7% | 16.3% |
| Reported net margin | 12.1% | 12.1% | 18.0% |
The revenue and operating-profit comparisons use continuing operations, with Q2FY26 restated to exclude SWC. Reported net income still includes discontinued-operations profit in each quarter; Q2FY27 also includes the SWC sale gain. The reported net margins therefore use total net income, including those items, over continuing revenue .
Past large deals starting work lifted dollar sales
Source: .
| USD revenue, $ crore | Q2FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|
| Reported revenue | 30.69 | 30.99 | 31.71 |
| QoQ growth in constant currency | — | 1.5% | 2.7% |
| YoY growth in constant currency | — | 1.9% | 4.8% |
Constant-currency revenue growth removes the effect of exchange-rate movements; it can still reflect changes in prices and business mix as well as volume.
Sequential growth quickened from Q1 to Q2. Management said wins from the last few quarters moved to execution . Rupee growth looks stronger than dollar growth because a weaker rupee lifts the value of dollar earnings .
Steady core profit hid inside a sharp headline jump
Profit after tax, or PAT, needs two readings. Continuing PAT shows the ongoing engineering business. Reported net income adds discontinued operations and the SWC sale gain .
The sale gain was Rs 165 crore in Q2FY27, with only a small profit from discontinued operations . That explains why reported profit surged while continuing profit grew steadily. Earnings per share shows the same split between continuing and total operations .
The board declared an interim dividend of Rs 20 per share, with record date October 27, 2026 .
Margins hit the mid-16% target ahead of schedule
EBIT margin, or operating profit as a share of sales, rose sequentially and year on year to reach the near-term goal early. Chief executive Amit Chadha said this achieved the mid-16% aspiration ahead of schedule .
The improvement was broad, with gross margins improving across all segments . In July, management had guided to sequential margin gains through FY27 to reach mid-16% on or before Q4FY27, helped by higher-margin Sustainability and Mobility, Engineering Intelligence-led delivery and disciplined costs .
Management now expects revenue momentum to strengthen further in the second half while sustaining healthy margins. It linked this to its long-term aspiration of 13-15% revenue CAGR with EBIT margins of 16-17% over five years .
Sustainability powers growth while Tech stays soft
Source: .
| Share of revenue | Q2FY26 restated | Q1FY27 | Q2FY27 |
|---|---|---|---|
| Mobility | 31.9% | 32.3% | 32.3% |
| Sustainability | 34.7% | 37.1% | 38.0% |
| Tech | 33.5% | 30.6% | 29.7% |
Sustainability, covering plant engineering and industrial products, delivered the strongest growth. Mobility sustained momentum. Tech declined sequentially and year on year .
Management described Tech as steady, with gross margins improving across all segments . That is softer than the Q1 expectation that Tech would return to growth from Q2 after a medical programme ended and telecom deals slipped . Management had already said Tech was unlikely to return to its earlier share as growth came more from Sustainability followed by Mobility .
Large-deal wins rebounded, with AI contributing more than half
Deal wins topped $20 crore after a soft quarter
Sources: Q2 FY26 — ; Q3 FY26 — ; Q4 FY26 — ; Q1 FY27 — ; Q2 FY27 — .
| Quarter | Large-deal TCV, $ million |
|---|---|
| Q2 FY26 | 292 |
| Q3 FY26 | 180 |
| Q4 FY26 | 182 |
| Q1 FY27 | nearly 100 |
| Q2 FY27 | over 200 |
Q2 wins included one $7.50 crore deal, one $3 crore-plus deal, one $2.50 crore deal and six $1 crore-plus deals . AI-related deals were over half the total .
The rebound followed a soft Q1 when some wins slipped into early Q2 . Management said order backlog and pipeline both improved year on year, with several large deals in play .
EI-led revenue reaches a $12 crore annualised run-rate
Engineering Intelligence is LTTS shorthand for embedding artificial intelligence across engineering, products, manufacturing and operations. It is sold through EIOne, a platform of over 100 solutions .
LTTS reported annualised revenue of $12 crore from EI-led solutions in Q2FY27 . Support comes from partnerships with Anthropic, NVIDIA, Databricks and leading hyperscalers, plus a new EI Lab with NVIDIA for Physical AI in manufacturing, robotics and supply chain and a Cognite partnership for industrial AI .
Illustrative wins show how it is deployed, including a five-year telecom equipment deal for full-stack Engineering Intelligence and an AI-powered engineering deal with an auto technology provider . Other wins span food, energy and robotics work .
Patent filings totalled 1,808 at quarter-end, with 1,085 co-authored with clients, while AI filings exceeded 250 .
North America grew as offshore delivery share rose
North America grew while Europe steadied
Source: .
| Geography | Q2FY27 share | QoQ growth | YoY growth |
|---|---|---|---|
| North America | 60.7% | 2.8% | 4.4% |
| Europe | 17.7% | 0.6% | -3.9% |
| India | 13.4% | 4.0% | 0.6% |
| Rest of World | 8.2% | 0.1% | 18.3% |
North America, the largest market, grew 2.8% sequentially; India had the fastest percentage growth at 4.0%. Europe grew only slightly sequentially and stayed down year on year .
In Q1, management had expected Europe to come back in Q2 . Q2 shows stabilisation rather than a full recovery.
Offshore and fixed-price shares increased
Source: .
| Delivery mix | Q2FY26 restated | Q1FY27 | Q2FY27 |
|---|---|---|---|
| Offshore | 52.1% | 53.9% | 55.9% |
| Onsite | 47.9% | 46.1% | 44.1% |
| Fixed-price | 32.1% | 35.1% | 35.6% |
| Time-and-materials | 67.9% | 64.9% | 64.4% |
Offshore means work done from India rather than at client sites. Fixed-price means a set fee for an outcome rather than billing by hours.
Both shares increased alongside the improvement in EBIT margin, but the Q2 presentation does not quantify their contribution to that improvement . Management said most large deals are fixed-price or outcome-based .