LTTS Q2 FY27 Earnings Analysis & Strategic Update

Executive Summary L&T Technology Services (LTTS) delivered a robust Q2 FY27 performance, substantially outperforming consensus estimates across key profitability and revenue metrics. The quarter was characterized by sequential margin expansion, resilient segmental growth, and strong large-deal momentum heavily weighted toward Artificial Intelligence. Key Financial Highlights (Q2 FY27) Net Profit: Surged 53.7% sequentially to ₹548.2 crore, decisively beating poll estimates of ₹360 crore. Revenue: Grew 3.4% QoQ to ₹3,040 crore (vs. estimated ₹3,022.5 crore). In USD terms, revenue reached $317.1 million, reflecting a constant currency growth of 4.8% YoY and 2.7% QoQ. Operating Profitability (EBIT): Rose 7.7% QoQ to ₹497 crore. EBIT margins expanded by 60 bps to 16.3% (up from 15.7% in Q1), exceeding the 16% consensus estimate. This was driven by gross margin improvements across Sustainability, Mobility, and Technology segments. Shareholder Returns: Declared an interim dividend of ₹20 per equity share (Record Date: October 27, 2026). Operational & Deal Momentum LTTS demonstrated exceptional deal-winning capability, securing large contracts with a Total Contract Value (TCV) exceeding $200 million. A significant inflection point is that over 50% of this TCV was driven by AI-related projects. Key wins included a flagship $75M contract, alongside multiple deals valued between $10M and $30M+. The company is aggressively expanding its AI moat, holding over 250 AI-related patents and launching an Engineering Intelligence Lab in partnership with NVIDIA to pioneer "Physical AI" applications.