What Caused L&T Technology Services’ Q3 Profit to Decline by 6%?
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Synopsis
L&T Technology Services (LTTS) reports a **6% YoY** dip in Q3 profits amid a mixed bag of performance metrics, including a **10% revenue surge**. CEO Amit Chadha highlights **double-digit growth** in Sustainability while addressing the recovery in Mobility. The tech firm also secured significant contracts, signaling strong deal momentum.
Key Takeaways
- LTTS reported a **6% YoY** profit decline.
- Revenue from operations increased by **10% YoY**.
- EBIT margin improved to **14.6%**.
- Strong deal momentum with several large contracts.
- Focus on sustainability and mobility segments for growth.
Mumbai, Jan 15 (NationPress) L&T Technology Services (LTTS) disclosed a 6% year-on-year (YoY) decrease in its consolidated net profit for the third quarter of FY26 (Q3 FY26) on Thursday.
The mid-tier IT services firm reported a net profit of Rs 303 crore for the quarter concluding on December 31, contrasting with Rs 322 crore during the same timeframe last financial year (Q3 FY25).
Sequentially, profit dropped by 8%, down from Rs 329 crore in the previous quarter (Q2 FY26), as per its stock exchange notification.
However, the company indicated that excluding the influence of new labor codes, profit effectively increased by 2% YoY to Rs 329 crore.
Revenue from operations saw a 10% YoY rise, reaching Rs 2,923 crore, compared to Rs 2,653 crore in the corresponding quarter of the previous year.
LTTS' EBITDA for the quarter was Rs 515 crore, marking a 4% quarter-on-quarter growth.
EBIT margin experienced an uptick to 14.6%, bolstered by enhanced operational efficiency and a 120 basis point improvement compared to the preceding quarter.
During this quarter, LTTS reported robust deal momentum, securing several significant contracts.
This included a $70 million engagement from a global original equipment manufacturer, along with additional contracts valued at $30 million, $20 million, and five more contracts each exceeding $10 million.
The company's average total contract value has remained consistent at approximately $200 million for five consecutive quarters.
In remarks regarding the performance, CEO and Managing Director Amit Chadha stated that the company continues to experience double-digit growth in its Sustainability segment, while signs of recovery are evident within the Mobility business.
“The sustainability segment has maintained double-digit growth on a YoY basis while Mobility is witnessing a turnaround,” Chadha noted.
Chadha further mentioned that the company is concentrating on high-growth, high-margin sectors under its five-year Lakshya plan, which is already yielding enhanced profitability.
By the conclusion of Q3 FY26, LTTS' patent portfolio comprised 1,655 patents, of which 1,007 were co-authored with clients.
The firm’s total employee count stood at 23,639, as disclosed in its exchange filing.
In the stock market, LTTS shares closed 1.8% lower at Rs 4,240 on the National Stock Exchange.
Point of View
It’s crucial to note that while L&T Technology Services is experiencing a profit decline, the overall revenue growth and strategic focus on high-margin sectors reflect a proactive approach to market challenges. The emphasis on sustainability and mobility indicates a forward-thinking strategy that aligns with global trends.
NationPress
15/01/2026
Frequently Asked Questions
What was the net profit of L&T Technology Services in Q3 FY26?
L&T Technology Services reported a net profit of Rs 303 crore for Q3 FY26.
How did the revenue from operations perform in Q3 FY26?
The revenue from operations increased by 10% YoY to Rs 2,923 crore.
What were the major contracts secured by LTTS in Q3 FY26?
LTTS secured multiple significant contracts, including a $70 million engagement from a global OEM.
How did the EBIT margin perform in Q3 FY26?
The EBIT margin improved to 14.6%, reflecting better operational efficiency.
What is the focus of LTTS under its five-year Lakshya plan?
LTTS is focusing on high-growth and high-margin areas to enhance profitability.
