LTTS's Q2 FY27 numbers came in strong, with revenue of Rs. 3,040.40 Cr (+12.06% YoY) and PAT growth of +19.64% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 19, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 3,040.40 Cr (+12.06% YoY) |
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| PAT (Q2) | Rs. 380.10 Cr (+19.64% YoY) |
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| EBITDA margin | 19.27% (+179 bps YoY) |
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| EPS (Q2) | Rs. 35.78 (+19.55% YoY) |
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| Market cap | Rs. 38,301.19 Cr |
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| CMP | Rs. 3,608.00 |
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Quarter Snapshot
LTTS delivered EBIT margin of 16.33% (+224 bps YoY), achieving management's mid-16% target two quarters ahead of the Q4 FY27 deadline, with revenue up 12.1% YoY and continuing PAT up 19.6% YoY. All three segments expanded margins QoQ and YoY simultaneously for the first time since the restructuring, and the SWC divestment closed with a Rs.165 Cr net gain, lifting cash + investments to Rs.4,174 Cr. Watch items are Tech's marginal +0.11% QoQ growth needing Q3 confirmation and H1 cash conversion at 76% versus the 90%+ FY27 guidance.
Key Investment Insights
Key Positives
- Revenue grew 12.1% YoY to Rs.3,040.4 Cr with a third consecutive quarter of sequential expansion (+3.4% QoQ, accelerating from +2.9% in Q1)
- EBIT margin reached 16.33% (+224 bps YoY, +64 bps QoQ), achieving the guided mid-16% target two quarters ahead of the Q4 FY27 deadline
- EBITDA margin expanded 179 bps YoY to 19.27%; EBITDA grew 23.5% YoY
- Continuing-ops PAT grew 19.6% YoY to Rs.380.1 Cr; continuing EPS grew to Rs.35.78 from Rs.29.93
- Sustainability segment grew 22.9% YoY with 29.53% EBIT margin (+145 bps YoY), now 38.0% of segment revenue
- Mobility returned to +3.5% QoQ growth with EBIT margin of 16.95% (+211 bps YoY)
- All three segments expanded EBIT margins QoQ and YoY simultaneously for the first time since the restructuring
- SWC divestment completed September 1, 2026 with a Rs.165.0 Cr net-of-tax gain; cash + investments rose to Rs.4,174.1 Cr (+17.7% vs March 2026)
- H1 FY27 FCF of Rs.491.5 Cr at 73% of continuing PAT; net worth grew 9.4% over six months
Risk Factors
- Tech segment growth was effectively flat at +0.11% QoQ and -0.6% YoY; the Q3 ramp from the $75 Mn+ deal and Telecom deal is needed to confirm the inflection sustains
- H1 CFO/continuing PAT of 76% is below the FY27 guidance of 90%+; H2 conversion of ~100%+ is required, with working-capital outflows of Rs.367.9 Cr vs Rs.303.4 Cr in H1 FY26
- Other income declined 53% YoY to Rs.30.9 Cr (vs Rs.65.7 Cr) on hedge-loss drag
- Unallocable expenses rose to Rs.29.9 Cr from Rs.7.6 Cr in Q2 FY26, likely reflecting corporate costs retained post-SWC
- Current tax rate stepped up to 27.79% from 25.76% QoQ with a deferred tax swing to a Rs.9.3 Cr credit, requiring monitoring
- Rupee depreciation (~Rs.95.3 to ~Rs.96.7/USD) contributed a translation tailwind; constant-currency growth is lower, though the USD figure is not disclosed