L&T Services (LTTS) Investor day presentation summary

Macro environment and market trends

• Global GDP growth is forecasted to stabilize at 3.1–3.2% in the medium term, with inflation projected to decline further and global investment expected to reach 27% of GDP by 2029, driven by AI, green economy, and infrastructure modernization.

• India’s share of global ER&D outsourcing is set to grow at a 17–22% CAGR from 2023 to 2030, with sourcing expected to reach $130–180B.

• The ER&D addressable market is expanding, with global spend projected at $2.5–3.3T and India’s sourcing share rising significantly.

• Key macro factors include population growth, rising consumer spend, and increased capex in sustainability and technology.

Strategic direction and aspirations

• The company aims to be among the top 5 global ER&D services firms, targeting $2B revenue and 17–18% EBIT margin in the medium term.

• Strategic focus is on three billion-dollar segments: Mobility, Sustainability, and Tech, each with tailored growth vectors and investments.

• Six-dimensional glide path includes customer centricity, technology quotient, sustainable operating model, ESG, people engagement, and industry-leading growth.

• Aspirations include 2,500+ patents, values-driven and inclusive culture, and being the technology partner of choice.

Segment strategies and growth drivers

• Mobility: Focus on software-defined mobility, electrification, vehicle engineering, and large deal momentum, with 19% CAGR and $1B revenue aspiration.

• Sustainability: Emphasis on plant modernization, automation, sustainable manufacturing, and energy transition, targeting 13% CAGR and $1B revenue.

• Tech: Growth in digital health, QARA, silicon engineering, platform engineering, and device engineering, aiming for 18% CAGR and $1B revenue.

• Each segment leverages global design centers, R&D labs, and strategic partnerships to drive innovation and delivery excellence.