LTTS

L&T Technology Services (LTTS) shares surged 6.13% to Rs 3,495 on Wednesday after the company reported a stronger-than-expected performance for the first quarter of FY27. In its post-earnings note, Nomura described LTTS' Q1 FY27 performance as "decent." The company reported revenue of $309.9 million, up 1.5% quarter-on-quarter and 1.9% year-on-year in constant currency terms, outperforming Nomura's estimate of 0.8% sequential growth. EBIT margin came in at 15.7%, expanding 50 basis points sequentially and 200 basis points year-on-year, ahead of the brokerage's estimate of 15.4%. Earnings per share (EPS) stood at Rs 33.1, marking a 17% year-on-year increase. During the quarter, LTTS secured $100 million worth of deal wins, including one $30 million deal, one $20 million deal, and four deals valued at over $10 million each. Commenting on the business outlook, Nomura noted that the mobility segment showed signs of recovery despite an uncertain macroeconomic environment. The technology vertical continued to witness measured demand, although the brokerage highlighted a healthy pipeline of large deals that are in advanced stages of closure. In the sustainability segment, Nomura said customers have largely maintained spending despite volatility in crude oil prices, with only minor execution delays. LTTS expects this business to deliver double-digit year-on-year growth in FY27. Management also reiterated its Project Lakshya FY31 targets, which include achieving a 13–15% revenue CAGR and maintaining EBIT margins in the mid-16% range. The company believes its early investments in artificial intelligence have given it a 6–9 month lead over competitors in Engineering Intelligence (EI), positioning it to capture additional market share.