L&T Services (LTTS) investor relations material

Executive summary

• Q2 FY27 revenue was ₹30,404 million, up 3.4% QoQ and 12.1% YoY; USD revenue grew 2.7% QoQ and 4.8% YoY in constant currency.

• EBIT margin increased 60 bps QoQ to 16.3%; large-deal TCV exceeded $200 million, with reported wins of $203 million.

• H2 revenue momentum is expected to strengthen, with healthy EBIT margins; the medium-term aspiration remains 13–15% revenue CAGR and 16–17% EBIT margins over five years.

• Sustainability grew 13.4% YoY and contributed 38% of revenue; AI-led offerings and deal ramp-ups are supporting growth.

Financial highlights

• Gross profit was ₹9,851 million, up 5.6% QoQ and 21.7% YoY; EBITDA was ₹5,858 million, up 6.8% QoQ and 23.5% YoY; EBIT was ₹4,966 million, up 7.6% QoQ and 29.8% YoY.

• Net income was ₹5,482 million, up 53.7% QoQ and 66.8% YoY, including a one-time ₹1,650 million SWC disinvestment gain; continuing-operations net income was ₹3,796 million.

• Continuing-operations EPS was ₹35.78 basic and ₹35.74 diluted; EPS including discontinued operations was ₹51.67 basic and ₹51.61 diluted.

• Large-deal wins were $203 million; order bookings increased and the pipeline was up more than 25% YoY.

Outlook and guidance

• H2 revenue momentum is expected to strengthen as large deals move into execution; no quarter-by-quarter or annual revenue guidance was given.

• Medium-term aspiration remains 13–15% revenue CAGR and 16–17% EBIT margins over five years; near-term margins are expected around mid-16%.

• Q3 wage hikes are estimated to have a 50–80 bps impact, already factored into the mid-16% margin outlook; regular furloughs are also expected in Q3.

• Tech is expected to remain muted in Q3, with growth returning thereafter; MedTech recovery is expected in Q4, while media is expected to remain steady.

• European auto is expected to remain steady for six to nine months, with recovery anticipated in 9–12 months; Mobility growth is expected to continue.