L&T Technology Services Q3FY26 Results: L&T Technology Services Ltd (LTTS) reported a steady performance for the December quarter, posting double-digit growth on a year-on-year basis even as seasonal factors led to a mild sequential dip in revenue.
The engineering services company said consolidated revenue from operations rose to Rs 29,235 million in Q3FY26, up 10.2 per cent from Rs 26,530 million in the corresponding quarter last year. Total income for the quarter stood at Rs 29,568 million, marking a 10.1 per cent increase year-on-year. On a quarter-on-quarter basis, revenue slipped 1.9 per cent from Rs 29,795 million reported in Q2FY26, reflecting typical December-quarter seasonality.
Despite the softer sequential performance, profitability remained largely intact. Adjusted net profit for the quarter came in at Rs 3,291 million, a 2.1 per cent rise from Rs 3,224 million a year ago and broadly flat compared with the previous quarter. The company incurred exceptional charges of Rs 354 million during the quarter, primarily linked to the implementation of new labour codes.
Operating margins improved on a sequential basis, with EBIT margin expanding to 14.6 per cent in Q3FY26 from 13.4 per cent in the September quarter, an improvement of 120 basis points. On a year-on-year comparison, margins were lower than the 15.9 per cent reported in Q3FY25, largely due to one-off costs and higher operating expenses during the period.
Sustainability vertical outperforms peers
Segment-wise, the Sustainability business emerged as the strongest growth driver during the quarter. Revenue from the segment rose 17.8 per cent year-on-year to Rs 9,731 million, making it one of the largest contributors to the company’s topline.
The Tech segment reported revenue of Rs 10,707 million, up 10.5 per cent from last year, while the Mobility segment posted revenue of Rs 8,797 million, reflecting a 2.6 per cent year-on-year increase amid a seasonally weak demand environment.
Deal pipeline remains healthy
Deal momentum remained stable, with LTTS reporting an average total contract value of around $200 million for the fifth consecutive quarter. During Q3FY26, the company secured a $70 million deal from a global original equipment manufacturer, a $30 million engagement, along with five additional deals valued at over $10 million each.
North America leads growth; workforce steady
North America continued to be the company’s largest geography, accounting for 56.8 per cent of overall revenue and recording 15.4 per cent year-on-year growth. The company’s employee strength stood at 23,639 at the end of the quarter, while voluntary attrition remained stable at 14.6 per cent.
Innovation continued to be a focus area, with the company’s patent portfolio expanding to 1,655 patents, including 1,007 patents co-authored with clients.
On the stock performance front, shares of L&T Technology Services have declined 12.6 per cent over the past one year, though the stock has delivered returns of more than 63 per cent over the last five years, underscoring long-term value creation.
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