L&T Technology Shares Surge 11% to Reach ₹4,000 Mark Following Impressive Q2 Results.

L&T Technology Services (LTTS) experienced a significant share price surge of nearly 11%, surpassing the ₹4,000 mark, following a strong performance in its second quarter. The company reported a sequential revenue increase of 3.4% to ₹3,040 crore, with dollar revenue rising 2.7% in constant currency terms to $317 million. Analysts were particularly surprised by the EBIT margin expansion to 16.3%, exceeding expectations significantly, with estimates from Motilal Oswal and Nomura at 15.6%. Additionally, adjusted profit after tax grew by 7.9% sequentially and 19.7% year-on-year, further demonstrating the company’s robust financial health.

A key highlight of LTTS’s quarterly performance was its ability to secure approximately $203 million in new contracts, with over half of these wins related to artificial intelligence (AI) and sustainability initiatives. This growth is reflected in an impressive 25% increase in the company’s deal pipeline compared to the previous year. AI-driven revenue has now reached approximately $120 million on an annualized basis, accounting for about 9.5% of quarterly revenues. The firm’s substantial investment in AI training and partnerships with leading tech firms like Nvidia emphasizes its commitment to leveraging AI as a primary driver of future growth.

While the sustainability vertical emerged as a strong growth driver, contributing to 38% of revenues with a substantial EBIT margin of 29.5%, other segments such as mobility showcased moderate expansion, supported primarily by North American markets. However, the technology vertical faced a slight decline due to various factors affecting the MedTech segment. Management remains optimistic, forecasting a stronger second half of FY27, anchored by the anticipated conversion of large deals and a robust order backlog. The company’s long-term revenue growth target of 13%-15% over the next three to five years reflects a strategic vision for sustained progress amid current market uncertainties.

Source: The Economic Times

(Expert Note: This intelligence brief was structured and verified by the Wealthova editorial desk.)