Shares of IT player L&T Technology Services Ltd (LTTS) were in green on Thursday, July 17, after the firm reported its quarterly earnings show for June 30, 2025, with net profit supported by a strong tax return
LTTS posted a slight 0.7 percent year-on-year rise in consolidated net profit for Q1 FY26 at Rs 316 crore, compared to Rs 314 crore in the same quarter last year. Revenue from operations grew 16 percent year-on-year to Rs 2,866 crore from Rs 2,462 crore.
On a sequential basis, PAT rose 1.5 percent over Q4 FY25’s Rs 311 crore. However, revenue declined 4 percent from Rs 2,982 crore in the March quarter.
Dollar revenue for the quarter came in at $335.3 million, down 2.9 percent quarter-on-quarter but up 13.6 percent year-on-year. In constant currency terms, revenue dipped 4.2 percent QoQ and increased 12.8 percent YoY. EBIT for the quarter stood at Rs 381 crore, with an EBIT margin of 13.3 percent, up 10 bps QoQ, but down 230 basis points on a YoY basis.
The revenue miss was driven by delayed ramp-up and pauses in certain projects (particularly in the auto segment) and discounts given to clients to strengthen long-term relationship (in the tech vertical), said Nomura. The brokerage maintained its reduce rating with a lower target price of Rs 3,600, down from Rs 3,760.
Choice Broking said that LTTS is well-positioned for a recovery in H2FY26, driven by strong large-deal wins, robust growth in the Sustainability vertical, and an improving margin trajectory. However, it downgraded its rating to 'add', while keeping its price target of Rs 4,850 intact.
"Moreover, a healthy pipeline and consistent large-deal TCVs enhance growth visibility. While revenue visibility & margin outlook have significantly improved, future growth depends on execution capabilities," the brokerage added.
At 9.20 a.m., shares were quoting Rs 4,364.9, up 0.4 percent on the NSE.
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