LTTSNSEQ4 FY26April 27, 2026

L&T Technology Services Limited

8,993words
92turns
9analyst exchanges
5executives
Management on call
Amit Chadha
CEO & MD,
Alind Saxena
EXECUTIVE DIRECTOR & PRESIDENT,
Rajeev Gupta
EXECUTIVE DIRECTOR & CFO,
Munjay Singh
CHIEF OPERATING OFFICER
Sandesh Naik
HEAD, INVESTOR RELATIONS
Key numbers — 40 extracted
5%
• In FY26, the total revenue, including continued and discontinued operations, grew 5% to $1,321 Mn as indicated in the previous quarter • The SWC business has been classified as d
8.3%
going forward, and therefore, the revenue from continued operations delivered a higher growth of 8.3% at $1,233 Mn. Here on, we will only talk about the continued operations • Sustainability cont
12.8%
on, we will only talk about the continued operations • Sustainability continued to do well with 12.8% growth, while Tech, including Intelliswift, grew 19.7% • North America did well with a growth o
19.7%
Sustainability continued to do well with 12.8% growth, while Tech, including Intelliswift, grew 19.7% • North America did well with a growth of 12%. All other geos showed positive growth • Our FY26
12%
rowth, while Tech, including Intelliswift, grew 19.7% • North America did well with a growth of 12%. All other geos showed positive growth • Our FY26 total large deal wins came up at $855 Mn, up 40
40%
2%. All other geos showed positive growth • Our FY26 total large deal wins came up at $855 Mn, up 40% over the previous year Now let me provide you key highlights for Q4FY26: • Revenue was $306 Mn,
0.3%
the previous year Now let me provide you key highlights for Q4FY26: • Revenue was $306 Mn, grew 0.3% annually, while we de-grew 1.7% sequentially, reflecting a deliberate shift towards improving the
1.7%
rovide you key highlights for Q4FY26: • Revenue was $306 Mn, grew 0.3% annually, while we de-grew 1.7% sequentially, reflecting a deliberate shift towards improving the quality of revenue over the las
40 bps
ad informed you during the Q3 results call • This is reflected in our EBIT margins expanding by 40 bps sequentially to 15.2%, second quarter in a row. Rajeev will share more details in his commentary
15.2%
the Q3 results call • This is reflected in our EBIT margins expanding by 40 bps sequentially to 15.2%, second quarter in a row. Rajeev will share more details in his commentary • Sustainability g
11%
s of the large deals. Moving on to our second segment of Sustainability • Sustainability grew 11% YoY on the back of strong execution of deals that we have won in the previous quarters. Over 50%
50%
11% YoY on the back of strong execution of deals that we have won in the previous quarters. Over 50% of large deal wins in Q4 were in the segment ensuring strong momentum growth. o This segment es
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Guidance — 20 items
Sandesh Naik
opening
“The audio recording of this call will be available on our website about half an hour after the call ends.”
Amit Chadha
opening
“Now let me share the key highlights for FY26: • In FY26, the total revenue, including continued and discontinued operations, grew 5% to $1,321 Mn as indicated in the previous quarter • The SWC business has been classified as discontinued going forward, and therefore, the revenue from continued operations delivered a higher growth of 8.3% at $1,233 Mn.”
Amit Chadha
opening
“All other geos showed positive growth • Our FY26 total large deal wins came up at $855 Mn, up 40% over the previous year Now let me provide you key highlights for Q4FY26: • Revenue was $306 Mn, grew 0.3% annually, while we de-grew 1.7% sequentially, reflecting a deliberate shift towards improving the quality of revenue over the last 2 quarters with strategic portfolio rationalization leading to a more resilient business baseline.”
From a Geo standpoint
opening
“We expect sustained momentum in CY26, driven by a robust pipeline and stronger deal ramp-ups of the large deals.”
From a Geo standpoint
opening
“We expect the growth momentum to continue for Sustainability segment across both Industrial and Plant on the back of ramp-up in large deals and strong pipeline.”
Now moving on to outlook
opening
“The last 5 years saw LTTS grow at 12.4% CAGR, outpacing industry growth of 8% as per Zinnov estimates.”
Now moving on to outlook
opening
“We believe we continue to be in a position to grow faster than the industry over the medium term, supported by strong core capabilities and execution discipline on revenue and margins.”
Now moving on to outlook
opening
“And as part of our 5-year Lakshya 31-Plan, we aspire to deliver 13% -15% CAGR over the next 5 years with EBIT margins in the range of 16% -17%.”
Rajeev Gupta
opening
“With that, let me begin by giving you an overall picture for the year FY26 • FY26 total revenue included continuing and discontinued operations came in at $1,321 Mn, and YoY growth of 4.9%, • EBIT margins for FY26 came to 14.1%, • Net income margin for FY26 came in at 11.3%.”
Rajeev Gupta
opening
“Accordingly, SWC business has now been classified as discontinued operations beginning quarter 4 FY26.”
Risks & concerns — 7 flagged
With respect to Revenue Metrics, In dollar terms, we reported revenue of $305.9 Mn, growth of 0.3% on a year-on-year basis, while a decline of 1.7% on a sequential basis.
— Rajeev Gupta
The sequential decline reflects the conscious exit from low-margin and nonstrategic portfolio in addition to the disinvestment of SWC business.
— Rajeev Gupta
Now this is a very positive sign because this vertical has been under pressure for quite a while for almost all of the players.
— Vibhor Singhal
And see, so far, despite we're seeing very strong deal wins, obviously, we have had leakage in the business, and that's been sort of a drag.
— Nitin Padmanabhan
So, headwind from SWC used to be only 40 bps or there is any one-off in the numbers?
— Dipesh Mehta
I think in one of the comments, you indicated that apart from SWC restructuring, there were some other restructurings as well in which there was an impact of $19 Mn.
— Shradha Agrawal
Firstly, any impact of the Middle East war, price volatility you are seeing in, let's say, the Plant Engineering business, especially in some of the subsegments like Oil and Gas, CPG, chemicals, any impact in greenfield or that could have an impact on the overall Sustainability vertical?
— Karan Uppal
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Q&A — 9 exchanges
Q
Yes. Okay. Thank you so much and congrats to Alind and Rajeev for their elevation. Amit, a couple of questions from my side. A very bold decision indeed in terms of divestment of the SWC business, something that we had acquired just 3 years ago. Just want to understand the thought process behind this step. I think we had earlier talked about this business offering us opportunities in the Middle East and some other places as well. So, was the consideration here just the profitability of the business that we were looking at? Or was it also that basically the growth opportunities that we saw in o
Amit Chadha
Sure. I'll start, and then I'll request Rajeev to add to it. So, see, when we acquired Smart World, there were three components in Smart World. There was Smart Cities part which was there. The second part was the Telco Infra piece and the third was the Cyber piece, right? So, what we did was that our whole thesis was that we will take these three, and we will immediately work on taking them international, right? That was our whole play that we had done. Now as we have moved forward, what has happened is the Telco Infra piece, we were able to take it international. We have been able to deliver
Q
Yes, thanks. Thanks for the opportunity. Amit sir, just wanted to understand within Mobility and Sustainability, one can assume the worst is behind. Sustainability, we were anyway doing better. So, Mobility, you expect we can start growing QoQ starting from the first quarter? And even in Tech, when do you expect the worst to get over?
Amit Chadha
So, thank you, Sandeep. So one, Sustainability will continue to grow as we move forward, right? Mobility has stabilized this quarter. You will start seeing growth from next quarter. And in Tech, there are three components. There's MedTech and there's Media and Tech, which includes Semcon and then there is Software. And we do believe that next quarter onwards, we should start seeing that growth again. So, we should see growth in all 3 as we move forward. The quantum of that, of course, will depend on as the quarter closes. As you know, we are still in the quarter now, new quarter. So, we'll com
Q
Yes. Hi, good evening. Thanks for the opportunity. Sir, first question is that from a 13%-15% growth CAGR, you mentioned that historically, it's grown at twelve & a half %. So, these numbers, the twelve & a half % is excluding the SWC bid, how should we understand that? And second, this 13% -15% CAGR is basically this is all the dollar CC, is that how you're thinking about it?
Amit Chadha
I'm going to actually look at Rajeev to clarify on the dollar CC part and this one. Rajeev, do you want to take this? So, Nitin, to your first question, on 12.4%, this is actually including SWC. And second, in terms of the constant currency, it will be of course, we will peg it more constant currency. But yes, over a 5-year period, there may be some areas where we'll talk even on reported currency as well. So, this 13% -15% is rupee or dollar, it's dollar? It's dollar, yes. It's dollar. Okay. And see, so far, despite we're seeing very strong deal wins, obviously, we have had leakage in the bus
Q
Just first on clarification side. Between this continued and overall combined business, I think margin gap seems to be 40 basis points in FY26. So, headwind from SWC used to be only 40 bps or there is any one-off in the numbers?
Rajeev Gupta
Dipesh, Rajeev here, I can take it. So, what -- I mean, we did talk about realignment of portfolio back in Q3. So, what you see as SWC revenues have actually come down from Q3 onwards, and it was a deliberate intent. So, while it assumes that there is only a 40-bps improvement, actually, it's much more than that. It's closer to almost 70 bps to 80 bps of improvement. No, Rajeev, my question was FY26 combined business, you reported 14.1% margin and continuing operation, you reported 14.5% margin for the full year, which in a way the impression SWC dilution was around 40 bps. That is what I just
Q
Yes. So, 2 questions, Amit. I think in one of the comments, you indicated that apart from SWC restructuring, there were some other restructurings as well in which there was an impact of $19 Mn. So, what does that relate to?
Amit Chadha
What is the second question? Second question is, we've seen a smart headcount addition of almost 3% to our base. So, is it in anticipation of some large deal ramp-up that we can expect? And also, in terms of restructuring, are we done with all low-margin businesses realignment? Or are there any other businesses that we need to think about going ahead? So let me answer the happy question first. Headcount has gone up. We've added about 500 people net in the company QoQ. We do expect to add another 500 sometime in Q1FY27, Q2 FY27, Q3 FY27 as well. Because we believe that there's this new skill se
Q
Hi. Thank you. I've just one question, Amit. On AI, how are the client conversations progressing across your 3 different segments? Because on the IT services side, we do hear a lot of ask from clients for productivity pass-through the pricing discounts. But curious to hear in ER&D, how the conversations have progressed over the past few months, even development on the AI side of things since February, March?
Amit Chadha
Sure. Bhavik, just like Munjay was mentioning, there are three parts to what we are seeing. Number one is efficiencies in PDLC and SDLC. So that is being -- one is being asked for by clients. But second, we are ourselves implementing our own tools to bring it about to almost all our programs. This is a work in progress right now. 65% of the company/60% of the company has been trained on AI tools. Another 40% is being done to be completed in the next 6 months, right? So that is SDLC, PDLC. In fact, website also shows a couple of tools that we have developed that are already industrialized and b
Q
Yes. I just wanted to clarify on this charge of exceptional cost that we have done in the quarter. Can you let me know for what business this was done? And is there anything more to happen on this plan going into next year?
Rajeev Gupta
Rahul, I can take this question. This is Rajeev here. So, Amit did talk about $19 Mn of annualized business, right, particularly in Europe and in Israel and parts of UK This restructuring cost actually entails towards those businesses and, of course, adjoining people and facilities that have been recorded in Q4. And like Amit said, we reconfirm that there are no more restructuring costs to continue from here on. And from a revenue point of view, is there some part of the revenue from this business still in Q4, which may not happen in Q1? There is no revenue in Q4 because we took quite a few of
Q
Yes. Thanks for the opportunity. Amit, two questions from my side. Firstly, any impact of the Middle East war, price volatility you are seeing in, let's say, the Plant Engineering business, especially in some of the subsegments like Oil and Gas, CPG, chemicals, any impact in greenfield or that could have an impact on the overall Sustainability vertical? That is one. Second is the six big bets which you talked about. Any M&A you are planning to do in any of these 6 big bets, if you can also share the size of it? And subpart to that question is that would you be open to take hit on margins again
Amit Chadha
Okay. So, one Middle East and Plant (Plant Engineering). So, the Middle East is a very small piece of our operations. Of course, we can look at growth there. We'll see. We hopefully believe that -- over a 5-year period, we do believe that Plant (Plant Engineering) in Middle East will grow for us but let this situation get resolved. Will it have an impact on our current quarter or next quarter? The answer is no. I think it's a very small part of our operations. I mean unless something drastic happens in which case that very small piece disappears. So, in normal course of time, no. Six bets, I'v
Q
Thank you. Thank you all for joining us on the call today. We hope we were able to answer your queries. We look forward to interacting with you throughout the quarter. Wish you all a very good evening and a good day. Thank you.
Management
Speaking time
Amit Chadha
22
Rajeev Gupta
17
Moderator
11
Vibhor Singhal
8
Shradha Agrawal
5
Rahul
5
Nitin Padmanabhan
4
Sandeep Shah
3
Dipesh Mehta
3
Karan Uppal
3
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Opening remarks
Sandesh Naik
Thank you, Sagar. Hello, everyone. I'm Sandesh, and welcome to the Earnings Call of L&T Technology Services for the fourth quarter of FY26. Our “Financial Results, Investor Release and Press Release’ have been filed on the stock exchanges and are also available on our website, www.ltts.com. I hope you have had a chance to go through them. This call is for 60 minutes. We will try to wrap up the management remarks in 20 minutes and then open up for Q&A. The audio recording of this call will be available on our website about half an hour after the call ends. With that, let me introduce the leadership team present on this call. We have with us Amit Chadha – CEO and MD; Alind Saxena – Executive Director and President; Rajeev Gupta – Executive Director & CFO; and Munjay Singh – COO. We will begin with Amit providing an overview of the company's performance and outlook, followed by Rajeev, who will walk you through the financial performance. I now invite Amit for his opening remarks.
Amit Chadha
Perfect. So, thank you all for joining us on the call today on a very busy results day. First of all, I would like to congratulate and welcome our CFO, Rajeev Gupta, as Executive Director and Chief Financial Officer on the Board of LTTS. I would also like to extend a warm welcome to Mr. Amitabh Kant on his appointment as an Independent Director on the Board of LTTS. We are delighted to have him join the Board. A governance reformer and public policy change agent, Mr. Kant also serves on the Board of Directors of the L&T Group. Now let me share the key highlights for FY26: • In FY26, the total revenue, including continued and discontinued operations, grew 5% to $1,321 Mn as indicated in the previous quarter • The SWC business has been classified as discontinued going forward, and therefore, the revenue from continued operations delivered a higher growth of 8.3% at $1,233 Mn. Here on, we will only talk about the continued operations • Sustainability continued to do well with 12.8% growth
Mobility
• The Mobility segment remained steady with revenues almost flat on a sequential basis. Over 40% of our large deal wins in Q4 were in the Mobility segment, indicating a turnaround for CY26 • We see momentum in Auto subsegment, particularly North America Automotive, showing good growth over the previous quarter • Aerospace and Rail subsegment has been resilient, while Trucks and Off Highway has been slightly subdued • We are gaining traction significantly in optimizing products and software life cycle through Generative AI and Agentic AI-led delivery models, enhancing enablement of product experience for end customers o A global premier technology group selected LTTS as a strategic engineering partner to drive digital transformation across its entities and establish a High Value Engineering Hub with us o LTTS entered into a strategic collaboration to establish a Center of Excellence for next-generation recreational marine solutions, leveraging its cross-domain expertise in Software-Defi
From a Geo standpoint
o The U.S. market, particularly Automotive, is seeing positive traction with increased investments in SDV technology, and we have been gaining market share o In Japan, steady wins in programs for future model launches has led to our growth in that geography o For European OEMs, cost optimization remains a priority through strategic partnerships. We are well positioned to benefit from these as we go forward with a number of deals in the pipeline In summary, the Mobility segment is showing early signs of growth. We expect sustained momentum in CY26, driven by a robust pipeline and stronger deal ramp-ups of the large deals. Moving on to our second segment of Sustainability • Sustainability grew 11% YoY on the back of strong execution of deals that we have won in the previous quarters. Over 50% of large deal wins in Q4 were in the segment ensuring strong momentum growth. o This segment established its strong credentials by forging a strategic partnership with a leading global energy major
Let me now cover a bit on our technology quotient
• EI, or Engineering Intelligence, is LTTS' approach to embedding AI across products, processes, and next-gen manufacturing - translating deep engineering expertise into reliable real-world outcomes • Powered by multimodal, agentic, and edge AI, EI delivers autonomous, production- grade systems, driving differentiated high-value outcome reflected in our large deal wins • LTTS has also strengthened its partnership with MIT Media Lab to explore and incubate forward-looking technologies such as Multisensory Intelligence, Signal Kinetics and Personal Robotics • We have surpassed the 1,700-mark in our patent filings for FY26, congratulations to all our employees and technologists, including 673 patents filed by LTTS and 1,033 co-authored with clients. Of these, 237 patents now are in AI and GenAI domain alone. Finally, let me share a glimpse of our Lakshya 31-Plan and the way forward. After careful consideration and deep analysis of the futuristic technologies and evolving market needs, LTT
Now moving on to outlook
The last 5 years saw LTTS grow at 12.4% CAGR, outpacing industry growth of 8% as per Zinnov estimates. We believe we continue to be in a position to grow faster than the industry over the medium term, supported by strong core capabilities and execution discipline on revenue and margins. We remain cautiously optimistic in the near term. And as part of our 5-year Lakshya 31-Plan, we aspire to deliver 13% -15% CAGR over the next 5 years with EBIT margins in the range of 16% -17%. With that said, I would like to truly thank all of you for the support that you have provided me over these last 5 years. I look forward to the next 5 and would now hand over to Rajeev to to provide his commentary, and then we'll stay back for questions. Thank you so much.
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