L&T Technology Services Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript L&T Technology Services Ltd filed with BSE on 20 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
L&T Technology Services reported Q1 FY27 revenue of $310 million, up 1.5% sequentially and 1.9% YoY in constant currency, with EBIT margin expanding to 15.7%. Sustainability grew 4.3% QoQ and 11.3% YoY as the fastest-growing segment, Mobility grew 2.3% sequentially, while Tech declined amid delayed deal closures and a paused medical program. Management discussed its Lakshya 31 strategy, Engineering Intelligence platforms, a new Anthropic partnership, and reiterated a five-year revenue and margin aspiration.
Numbers mentioned
Revenue: $310 Mn (Q1 FY27)
p. 3
“Revenue came in at $ 310 Mn, growing 1.5% sequentially and 1.9% YoY on a constant currency basis”
Amit Chadha, page 3 of the filed PDF · View the filing
Revenue: ₹ 2,940 crores (Q1 FY27)
p. 8
“Revenue for the quarter came in at ₹ 2,940 crores, representing growth of 2.9% sequentially and 11.5% YoY.”
Rajeev Gupta, page 8 of the filed PDF · View the filing
EBIT margin: 15.7% (Q1 FY27)
p. 8
“EBIT margin for the quarter stood at 15.7%, an improvement of 50 bps sequentially and 200 bps YoY.”
Rajeev Gupta, page 8 of the filed PDF · View the filing
Effective tax rate: 26% (Q1 FY27)
p. 8
“Effective Tax rate for the quarter was 26%, improving by 60 basis points over the previous quarter.”
Rajeev Gupta, page 8 of the filed PDF · View the filing
Net Income: ₹ 352 crores (Q1 FY27)
p. 9
“Net Income for the quarter was ₹ 352 crores, up 1.5% sequentially and 17.4% YoY, representing 12% of revenue.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Earnings Per Share: ₹ 33.17 (Q1 FY27)
p. 9
“Our Earnings Per Share from continuing operations was ₹ 33.17 for the quarter, translating to an annualized EPS of ₹132.68 compared with reported FY26 EPS of ₹115.89, which is improvement of nearly 15%.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Other income net: ₹ 14.7 crores (Q1 FY27)
p. 9
“Other income net was ₹ 14.7 crores for the quarter, lower compared to previous quarter, primarily due to forex losses.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Combined DSO: 77 days (Q1 FY27)
p. 9
“Our combined DSO improved to 77 days from 83 days in Q4, an improvement of 6 days.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Free cash flow: ₹ 540 crores, 153% of net income (Q1 FY27)
p. 9
“Free cash flow for Q1 FY27 was ₹ 540 crores at 153% of net income.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Cash and investments: ₹ 3,394 crores (Q1 FY27)
p. 9
“Cash and investments stood at ₹ 3,394 crores at the end of Q1 FY27 compared to ₹ 3,555 crores at the end of Q4 FY26.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Mobility margin: 15.6% (Q1 FY27)
p. 9
“Mobility margins for Q1 came in at 15.6%.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Sustainability margin: 29.1% (Q1 FY27)
p. 9
“Sustainability continued to perform well with margins improving to 29.1%, up 40 bps sequentially.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Tech segment margin: 11.5% (Q1 FY27)
p. 9
“Tech segment margins came in at 11.5%, reflecting softer revenue performance during the quarter.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Offshore mix: 53.9% (Q1 FY27)
p. 9
“Offshore mix was 53.9%, broadly in line with Q4.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
T&M revenue mix: 64.9% (Q1 FY27)
p. 10
“T&M revenue mix was 64.9% in Q1, lower compared with Q4 as we focus on favourable shift towards fixed price and outcome-based engagements.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Headcount: 23,845 (Q1 FY27)
p. 10
“Headcount remained steady at 23,845 in Q1 compared with 23,830 in Q4.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Attrition: 14.7% (Q1 FY27)
p. 10
“Attrition as well remained range-bound at 14.7%.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Realized rupee rate: ₹ 94.86 to the dollar (Q1 FY27)
p. 10
“The realized rupee for Q1 was around ₹ 94.86 to the dollar, representing depreciation of 1.5% versus Q4.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
AI patents: 244, total patents 1,757 (Q1 FY27)
p. 4
“AI patents now stand at 244, taking the total patent count to 1,757”
Amit Chadha, page 4 of the filed PDF · View the filing
Large deal TCV wins: nearly $100 Mn (Q1 FY27)
p. 4
“In Q1, we recorded large deal TCV wins of nearly $100 Mn, with a few large deal wins that were supposed to close in Q1 having moved to early part of Q2 right now”
Amit Chadha, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Effective tax rate — 26.2% to 26.7%
stated firmly by Rajeev Gupta
p. 8
“We expect ETR to remain in the range of 26.2% to 26.7%.”
Rajeev Gupta, page 8 of the filed PDF · View the filing
Combined DSO — 80 to 85 days
stated firmly by Rajeev Gupta
p. 9
“Going forward, we expect combined DSO to remain in the range of 80 to 85 days.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Free cash flow to net income — 90% to 95% · FY27
stated firmly by Rajeev Gupta
p. 13
“but you try to keep it between 90% to 95%, that is for certain that we can deliver for the year.”
Rajeev Gupta, page 13 of the filed PDF · View the filing
EBIT margin — mid-16% EBIT margin · on or before Q4 FY27
stated as an aspiration by Rajeev Gupta
p. 10
“we remain on track towards our aspiration of achieving a mid-16% EBIT margin on or before Q4 FY27.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Revenue CAGR — 13-15% CAGR · next 5 years
stated as an aspiration by Amit Chadha
p. 8
“we remain committed to our aspiration of delivering 13-15% CAGR over the next 5 years while maintaining EBIT margins of 16-17%”
Amit Chadha, page 8 of the filed PDF · View the filing
Revenue and margins — quarters ahead
stated firmly by Amit Chadha
p. 8
“I would like to confirm and reconfirm that your company will continue to grow sequentially in revenues and margins in the quarters ahead”
Amit Chadha, page 8 of the filed PDF · View the filing
Sustainability growth — double-digit growth · FY27
stated firmly by Amit Chadha
p. 18
“I'm confirming double-digit growth for Sustainability for FY27, right?”
Amit Chadha, page 18 of the filed PDF · View the filing
Tech segment revenue share — not back to 34% levels
stated firmly by Rajeev Gupta
p. 17
“So likely, you will see some more momentum in Tech, but do we expect it to come back to 34% levels? Not really.”
Rajeev Gupta, page 17 of the filed PDF · View the filing
Telecom deal closure — early part of Q2
stated conditionally by Amit Chadha
p. 19
“It's a significant deal. And hopefully, if all goes well, like Rajeev alluded and Alind alluded, we should be able to announce it in the early part of Q2, and the ramp-up will start immediately.”
Amit Chadha, page 19 of the filed PDF · View the filing
Smart World disinvestment transaction — Q2
stated conditionally by Rajeev Gupta
p. 17
“I think with most of the condition precedents in progress, hopefully, we should be able to conclude the transaction in Q2.”
Rajeev Gupta, page 17 of the filed PDF · View the filing
Q2 growth — Q2
stated firmly by Amit Chadha
p. 17
“but I can commit to you growth in Q2. How much to be played out?”
Amit Chadha, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed Tech's decline to a medical program stopping as planned with no replacement start, moving wins into Q2, and cited diversification and EI investments as Mobility differentiators.
Answered by Amit Chadha
Asked by Ravi Menon: What is differentiating LTTS in Mobility and Auto while peers struggle, and why did Tech decline this quarter?
p. 11
“there was a particular medical program that actually stopped and per plan the new one didn't start, and that's why we said a couple of our wins have moved into Q2.”
Amit Chadha, page 11 of the filed PDF · View the filing
Rajeev Gupta said the company will aim to keep free cash flow between 90-95% of net income for the year, calling this quarter exceptional.
Answered by Rajeev Gupta
Asked by Vibhor Singhal: Will free cash flow to net income remain as high as 153% or normalize lower?
p. 13
“This has been a stellar quarter in terms of working capital management. While we will attempt to do as well as we did in this quarter, but you try to keep it between 90% to 95%, that is for certain that we can deliver for the year.”
Rajeev Gupta, page 13 of the filed PDF · View the filing
Amit Chadha said no pullback has been seen from customers and pipeline remains healthy, with only a small Middle East decline.
Answered by Amit Chadha
Asked by Sandeep Shah: Does crude price volatility affect Plant Engineering clients' R&D budget decisions?
p. 18
“we have not seen any pullback from our customers.”
Amit Chadha, page 18 of the filed PDF · View the filing
Rajeev Gupta said Tech is unlikely to return to its prior 34% revenue share as Sustainability and Mobility grow faster.
Answered by Rajeev Gupta
Asked by Jyoti: Is Tech's declining revenue share a structural shift or will it regain historical share?
p. 17
“So likely, you will see some more momentum in Tech, but do we expect it to come back to 34% levels? Not really. I think you will see more of Sustainability and Mobility followed by Tech.”
Rajeev Gupta, page 17 of the filed PDF · View the filing
Alind Saxena said the shifting is not broad-based and depends on client-specific factors including European vacations, with ramp-up expected to follow the win.
Answered by Alind Saxena
Asked by Dipesh Mehta: Is the right-shifting of deals broad-based or client-specific, and does it affect full-year growth?
p. 19
“So, we are not -- it's not broad-based. And as you probably know that the decision-making varies from client to client, and it's dependent on always some of the other factors, which is there, part of which is also that Europe does go on vacation during this time.”
Alind Saxena, page 19 of the filed PDF · View the filing
Amit Chadha said client conversations remain shielded from war impacts and are focused on market share, AI's business impact, and cost neutralization.
Answered by Amit Chadha
Asked by Bhavik Mehta: Have client conversations shifted given geopolitics, and is discretionary spending returning?
p. 20
“most of the client conversations are still shielded from a war standpoint, right? Still conversations around, how do we increase market share, how do we make products more viable?”
Amit Chadha, page 20 of the filed PDF · View the filing
Risks flagged
Europe demonstrated slight moderation during the quarter
p. 4
“North America, our major market continued to grow sequentially along with ROW and India, while Europe demonstrated slight moderation during the quarter”
Amit Chadha, page 4 of the filed PDF · View the filing
Tech segment faced a measured demand environment
p. 6
“The segment operated in a measured demand environment during the quarter.”
Alind Saxena, page 6 of the filed PDF · View the filing
MedTech program conclusion and delayed start of another program
p. 7
“In MedTech sub-segment, one of our programs reached its planned conclusion, while the start of the other program has been temporarily delayed”
Alind Saxena, page 7 of the filed PDF · View the filing
Mobility margin decline due to on-site ramp-up of new programs
p. 9
“There was a slight decline primarily due to on-site ramp-up of new programs.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Lower other income due to forex/hedge losses
p. 17
“So, this is, I think, primarily hedge losses, which is why you're seeing a lower other income.”
Rajeev Gupta, page 17 of the filed PDF · View the filing
European OEMs dependent on Asia and China facing challenges
p. 16
“Europe, because they were depending on Asia and China for a significant part of their market, which seems to have been vanishing over the last few quarters.”
Amit Chadha, page 16 of the filed PDF · View the filing
Middle East business decline due to regional volatility
p. 18
“Middle East was very small for us that did decline for us a little bit in Q4 and got hit in Q1, got hit a little bit, but it is very small for us.”
Amit Chadha, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.