L&T Services (LTTS) Q1 26/27 earnings summary

Executive summary

• Achieved sequential and year-over-year revenue growth, with EBIT margin improvement and strong deal momentum, including multiple large contract wins.

• Strategic focus on Engineering Intelligence and AI partnerships, including with Anthropic, is driving deeper client engagement and innovation.

• Mobility and Sustainability segments led growth, with double-digit annual growth in Sustainability and Mobility returning to growth.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2026, were approved and reviewed without qualification by the statutory auditors.

• Board changes included the cessation of an Independent Director and the re-appointment of another for a new term, subject to shareholder approval.

Financial highlights

• Revenue for Q1 FY27: ₹29,401 million (INR 2,940 crore), up 2.9% sequentially and 11.5% year-over-year; USD revenue at $309.9 million, up 1.5% sequentially and 1.9% year-over-year in constant currency.

• EBIT margin at 15.7%, up 50 bps sequentially and 200 bps year-over-year.

• Net income: ₹3,571 million, up 1.5% sequentially and 17.4% year-over-year, representing 12% of revenue.

• Free cash flow at ₹5,396 million (INR 540 crore), 153% of net income.

• Basic EPS for the quarter was ₹33.62, annualized EPS of ₹132.68, up nearly 15% from FY26.

Outlook and guidance

• Expect sequential growth in revenues and margins in upcoming quarters, with a five-year CAGR target of 13%-15% and EBIT margins of 16%-17%.

• Margin improvement to be driven by higher-margin segments and operational excellence.

• Portfolio optimization ongoing, including the sale of the Smart World and Communication business unit.