L&T Technology Services (LTTS) is India's largest pure-play engineering R&D services company, and this quarter's print arrives with the rupee near record lows and the industry's ER&D pool flat. The two big things to watch: whether the Tech segment returns to growth on the significant Telecom deal management said would close in early Q2, and whether EBIT margin extends its sequential climb from 15.7% toward the guided mid-16% level.
| Results date | October 19, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 2,940 Cr (up 2.9% QoQ, 11.5% YoY) |
| Previous quarter PAT | Rs. 352 Cr (up 17.4% YoY) |
| Previous quarter EBITDA margin | 18.7% |
| Market cap | Rs. 36,422.59 Cr |
| CMP | Rs. 3,429.2 |
The Board of Directors is scheduled to meet on October 19, 2026, to consider the Q2 and half-year FY27 financial results, with an interim dividend to be considered "if any". The trading window remains closed from October 1 to October 21, 2026.
The earnings call is scheduled for 5:30 p.m. IST on the results day, October 19, 2026.
The central test this quarter is management's commitment that the Tech segment returns to growth "from Q2 onwards", hinging on a significant Telecom deal expected to close in early Q2 with immediate ramp-up if successful, alongside the US$75 Mn+ five-year Engineering Intelligence order win announced August 19, 2026. The rupee's slide through the quarter — from about 95.30 to the dollar in August to closes near 96.7-96.8 by early October — is a translation tailwind to reported INR revenue on top of Q1's 1.9% constant-currency growth, though the NASSCOM pure-play ER&D print of -0.1% QoQ in Q1 FY27 shows the industry pool gave no assist. On margins, the guided path to mid-16% EBIT "on or before Q4 FY27" from 15.7% in Q1 rests on Sustainability's 29.1% segment margin growing double-digit in FY27, SG&A discipline toward 10.5-11.0% of revenue, and Engineering Intelligence-led productivity, with hedge-loss drag on other income expected to persist "for the next few quarters". The SWC divestment completed effective September 1, 2026, so discontinued-ops accounting and any gain or loss on sale will land in this quarter's numbers. The upcoming call is also where investors will look for whether large-deal TCV re-accelerated from Q1's ~$100 Mn toward the ~$200 Mn six-quarter average.
Performance vs Guidance Tracking: Where management stands against its stated targets heading into Q2 FY27:
Tech segment inflection and Telecom deal
SWC divestment accounting
Margin path and cash flow
Risks and headwinds to monitor
Management has cited slow ramp-ups into backlog and subdued Auto demand with program pauses as the reasons strong TCV did not translate into faster growth. In Q1 FY27, large-deal TCV fell to about $100 Mn, with some wins that were supposed to close in Q1 moving to the early part of Q2.
Management has guided to mid-16% EBIT margin on or before Q4 FY27, a window it advanced from the earlier "Q4 FY27 to Q1 FY28" timeframe. The CFO has framed the 200-300 bps improvement as happening sequentially, with levers including quality of revenue, AI-led delivery efficiency and SG&A management.
Q1 FY27 free cash flow was Rs. 540 Cr at 153% of net income. The CFO has guided to 90%+ of net income for FY27, saying "90% to 95%, that is for certain".
No — management has confirmed the exits of about $19 Mn of annualized low-margin revenue across Europe, Israel and parts of the UK are complete. The Q4 FY26 charge covered people and facilities costs, and management stated "no more restructuring costs to continue from here on".
On September 24, 2026, LTTS announced a strategic partnership with Cognite for Industrial AI and data solutions via its Sustainability segment, targeting Oil & Gas, Chemicals, LNG, CPG/FMCG, Mining and Industrial Manufacturing. It includes a dedicated Center of Excellence with 50+ certified LTTS engineers and a first joint project with a global top-ten oil and gas company; no financial terms were disclosed.