L&T Technology Services Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript L&T Technology Services Ltd filed with BSE on 27 Apr 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 Q4FY26 revenue of $306 Mn from continuing operations, up 0.3% year-on-year but down 1.7% sequentially, which management attributed to a deliberate exit from low-margin and nonstrategic business. EBIT margin expanded 40 basis points sequentially to 15.2%, the second consecutive quarterly improvement, while the company completed the disinvestment of its SWC business and reclassified it as discontinued operations. Management also outlined a new 5-year Lakshya 31 strategic plan built around six technology bets and announced leadership changes including Rajeev Gupta's elevation to the Board as CFO.
Numbers mentioned
Revenue (continuing operations): $306 Mn (Q4 FY26)
p. 4
“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.”
Amit Chadha, page 4 of the filed PDF · View the filing
EBIT margin: 15.2% (Q4 FY26)
p. 4
“This is reflected in our EBIT margins expanding by 40 bps sequentially to 15.2%, second quarter in a row.”
Amit Chadha, page 4 of the filed PDF · View the filing
Revenue (INR): ₹ 2,858 crores (Q4 FY26)
p. 9
“Our revenue for the quarter came in at ₹ 2,858 crores, a growth of 2.5% on a sequential basis, while YoY grew at 8.3%.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Revenue (INR): ₹ 10,996 crores (FY26)
p. 9
“Revenue for FY26 was at ₹ 10,996 crores, a growth of 14% over FY25.”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Net Income: ₹ 346 crores (Q4 FY26)
p. 10
“Net Income for the quarter stood at ₹ 346 crores, which is 12.1% of revenue, showing an improvement of 70 bps over previous quarter.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
EPS (annualized): ₹ 120.56 (FY26)
p. 10
“EPS from continuing operations stood at ₹ 30.14 for the quarter, translating to an annualized EPS of ₹ 120.56.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Combined DSO: 83 days (Q4 FY26)
p. 10
“The combined DSO was at 83 days compared to 93 days in Q3, an improvement of 10 days.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Free Cash Flow: ₹ 1,280 crores (FY26)
p. 10
“In FY26, Free Cash Flow came in at ₹ 1,280 crores.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Final dividend: ₹ 40 per share (FY26)
p. 10
“The Board today recommended a final dividend of ₹ 40 per share, taking the total dividend for FY26 to ₹ 58 per share.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Return on Equity: 20.4% (FY26)
p. 10
“Our Return on Equity stands at 20.4% for FY26.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Mobility segment margin: 16.1% (Q4 FY26)
p. 10
“Mobility segment margins for Q4 came in at 16.1%, a sequential improvement of 130 bps over previous quarter.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Sustainability segment margin: 28.7% (Q4 FY26)
p. 11
“Sustainability segment margins for Q4 remained steady on a sequential basis at 28.7%.”
Rajeev Gupta, page 11 of the filed PDF · View the filing
Tech segment margin: 12.6% (Q4 FY26)
p. 11
“Tech segment margins for the quarter came in at 12.6%, sequential improvement of 210 bps over previous quarter.”
Rajeev Gupta, page 11 of the filed PDF · View the filing
Headcount: 23,830 (FY26 year-end)
p. 11
“Headcount improved sequentially by 522 to 23,830 at year-end as we onboarded freshers during the quarter.”
Rajeev Gupta, page 11 of the filed PDF · View the filing
Attrition: 14.7% (Q4 FY26)
p. 11
“Attrition remained range bound at 14.7% levels.”
Rajeev Gupta, page 11 of the filed PDF · View the filing
Large deal wins TCV: $855 Mn (FY26)
p. 4
“Our FY26 total large deal wins came up at $855 Mn, up 40% over the previous year”
Amit Chadha, page 4 of the filed PDF · View the filing
Large deal wins TCV: $182 Mn (Q4 FY26)
p. 4
“Our large deal win continued its momentum with a healthy TCV of $182 Mn in the quarter, reflecting our deep client relationships and validation of our new technology investments”
Amit Chadha, page 4 of the filed PDF · View the filing
Patent filings: 1,700+ (FY26)
p. 7
“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.”
Amit Chadha, page 7 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.
EBIT margin — mid-16% · on or before Q4FY27
stated as an aspiration by Rajeev Gupta
p. 12
“With this, we now advance our aspiration to achieve mid-16% EBIT margin levels on or before Q4FY27”
Rajeev Gupta, page 12 of the filed PDF · View the filing
Revenue CAGR — 13%-15% CAGR · next 5 years
stated as an aspiration by Amit Chadha
p. 9
“we aspire to deliver 13% -15% CAGR over the next 5 years with EBIT margins in the range of 16% -17%”
Amit Chadha, page 9 of the filed PDF · View the filing
EBIT margin band — 16%-17% · next 5 years (Lakshya FY31)
stated as an aspiration by Rajeev Gupta
p. 12
“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, page 12 of the filed PDF · View the filing
Effective Tax Rate — 26.5% to 27%
stated firmly by Rajeev Gupta
p. 10
“Going ahead, we expect this to be in the range of 26.5% to 27%.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Combined DSO — 85-90 days
stated firmly by Rajeev Gupta
p. 10
“The combined DSO is expected to be in the range of 85-90 days going forward.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Mobility segment growth — next quarter
stated firmly by Amit Chadha
p. 15
“Mobility has stabilized this quarter. You will start seeing growth from next quarter.”
Amit Chadha, page 15 of the filed PDF · View the filing
Revenue from six technology bets — more than 70% of business · 5 years
stated as an aspiration by Amit Chadha
p. 18
“In 5 years’, time, we expect more than 70% of business to be coming from these 6 bets.”
Amit Chadha, page 18 of the filed PDF · View the filing
Headcount addition — another 500 · Q1FY27, Q2FY27, Q3FY27
stated firmly by Amit Chadha
p. 19
“We do expect to add another 500 sometime in Q1FY27, Q2 FY27, Q3 FY27 as well.”
Amit Chadha, page 19 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 said the Smart Cities portion could not be internationalized as it depends on local government work, while Telco Infra and Cyber were successfully scaled and retained, leading to the decision to divest.
Answered by Amit Chadha
Asked by Vibhor Singhal: What was the rationale behind divesting the SWC business acquired three years ago?
p. 12
“Smart Cities, however, we were not able to internationalize because a lot of that work is done with local governments and is done for creating local jobs.”
Amit Chadha, page 12 of the filed PDF · View the filing
Rajeev Gupta reaffirmed the mid-16% aspiration by Q4FY27 and the 16%-17% band over the 5-year Lakshya FY31 period.
Answered by Rajeev Gupta
Asked by Vibhor Singhal: Does the margin guidance of 16%-17% apply over 5 years or could it be achieved sooner?
p. 14
“So, we continue to aspire to get to mid-16% levels by Q4FY27 of this year. And if we've got an ability, we would like to deliver that prior to Q4FY27.”
Rajeev Gupta, page 14 of the filed PDF · View the filing
Management said Mobility has stabilized and should show growth from next quarter, and Tech's three subsegments should also return to growth next quarter.
Answered by Amit Chadha
Asked by Sandeep Shah: When will Mobility and Tech segments start growing sequentially?
p. 15
“Mobility has stabilized this quarter. You will start seeing growth from next quarter. And in Tech, there are three components.”
Amit Chadha, page 15 of the filed PDF · View the filing
Rajeev Gupta confirmed the 12.4% figure includes SWC and that the 13%-15% target is in dollar terms.
Answered by Rajeev Gupta
Asked by Nitin Padmanabhan: Is the 13%-15% CAGR guidance in dollar or rupee terms, and does historical 12.4% CAGR include SWC?
p. 16
“So, Nitin, to your first question, on 12.4%, this is actually including SWC.”
Rajeev Gupta, page 16 of the filed PDF · View the filing
Amit Chadha said less than 50% of revenue currently comes from the six bets, with an expectation this rises to over 70% in five years.
Answered by Amit Chadha
Asked by Dipesh Mehta: What is the current revenue mix and investment plan for the six technology bets?
p. 18
“less than 50% of the revenue today comes from these bets. In 5 years’, time, we expect more than 70% of business to be coming from these 6 bets.”
Amit Chadha, page 18 of the filed PDF · View the filing
Management maintained the guidance of mid-16% margin by Q4FY27 or prior without committing to an earlier H2 timeline.
Answered by Rajeev Gupta
Asked by Shradha Agrawal: Given SWC divestment and rupee depreciation tailwinds, could 15% margin be reached by H2FY26?
p. 20
“Shradha, we maintain our intent is to deliver Q4 or prior, but we certainly have advanced it.”
Rajeev Gupta, page 20 of the filed PDF · View the filing
Rajeev Gupta said the $19 Mn annualized restructuring related to businesses in Europe, Israel and UK, and confirmed no further restructuring costs are expected.
Answered by Rajeev Gupta
Asked by Rahul: What drove the exceptional/restructuring cost in the quarter and is more expected?
p. 21
“we reconfirm that there are no more restructuring costs to continue from here on.”
Rajeev Gupta, page 21 of the filed PDF · View the filing
Amit Chadha said the Middle East is a small part of operations with no near-term impact, and Rajeev Gupta said only tuck-in acquisitions are being considered, not large deals.
Answered by Amit Chadha
Asked by Karan Uppal: Is the Middle East conflict affecting the Plant Engineering business, and is management open to margin dilution from M&A?
p. 22
“Will it have an impact on our current quarter or next quarter? The answer is no.”
Amit Chadha, page 22 of the filed PDF · View the filing
Risks flagged
Conscious exit from low-margin and nonstrategic businesses reduced revenue
p. 10
“The sequential decline reflects the conscious exit from low-margin and nonstrategic portfolio in addition to the disinvestment of SWC business.”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Trucks and Off Highway subsegment subdued
p. 5
“Aerospace and Rail subsegment has been resilient, while Trucks and Off Highway has been slightly subdued”
Amit Chadha, page 5 of the filed PDF · View the filing
Tech segment revenues subdued due to conscious exit from nonstrategic businesses with one-time expenses
p. 6
“The subdued revenues in Tech segment reflect the conscious exit from nonstrategic businesses where we have also incurred some one-time expenses on account of the same.”
Amit Chadha, page 6 of the filed PDF · View the filing
European Auto OEMs losing market share in Asia
p. 14
“In Europe, they are still between losing market share in Asia, etcetera.”
Amit Chadha, page 14 of the filed PDF · View the filing
Restructuring shutdown of low-margin Middle East and Europe operations impacted annualized revenue
p. 19
“There was in Telecom Infra, there was a couple of low-margin, non-value-add businesses that we were on. We have returned the lab equipment and shut that down very respectfully for the client.”
Amit Chadha, page 19 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.