Sequential Revenue and Margin Growth Every Quarter
Management committed to growing revenues and margins sequentially in all upcoming quarters, with specific focus on Sustainability and Mobility segments driving mix improvement.
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L&T Technology Services · forward-looking guidance across the available source record.
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What management said would happen.
growth
Mid-16% EBIT Margin Target by Q4 FY27
On track to achieve mid-16% EBIT margin by Q4 FY27 through continued growth in higher-margin Sustainability and Mobility businesses, improved tech segment margins, and EI-led delivery productivity.
13-15% Revenue CAGR over 5 Years
Reaffirmed long-term aspiration of 13-15% CADG (Constant Currency Revenue Growth) over the next 5 years while maintaining EBIT margins between 16-17%.
Significant Telecom Deal to Close Early Q2
A significant telecom deal was expected to close in early Q2 with immediate ramp-up, expected to drive Tech segment recovery along with medical domain deals in negotiation.
H2 FY26 Growth > H1 FY26
Management expects both revenue and EBIT margins to improve in H2 with growth trajectory strengthening across all three segments, particularly sustainability with its $100M deal ramping.
FY26 Double-Digit Revenue Growth, $2B Target
Company reiterates double-digit growth target for FY26 and $2 billion revenue aspiration, with mobility expected to return to growth in Q4.
Mid-16% EBIT Margin by Q4 FY27/Q1 FY28
Margins expected to improve sequentially from Q3 onward via growth, mix shift to high-margin sustainability, operational efficiency, AI-driven delivery improvements, and IntelliTrans integration gains.
Mobility Segment Recovery in Q4 FY26
Q3 will see muted mobility with cyclical impact from automotive furlows, but Q4 expects comeback driven by ramp-ups in closed deals across auto, trucks/off-highway, and aerospace/rail subsegments.
FY26 Growth: Mid-single digit overall, double-digit for focused areas
Management guides for mid-single digit revenue growth in FY26 while focused business areas (sustainability, mobility transformation, EI solutions) will see double-digit growth, reflecting the impact of deliberate portfolio rationalization.
EBIT Margin Target: ~16% between Q4 FY27 and Q1 FY28
Aspiration for mid-16% EBIT margins maintained, expected to be achieved between Q4 FY27 and Q1 FY28 through capital allocation to high-margin segments, portfolio optimization, and AI-driven operational efficiencies.
Restructuring Completion: By March 31, 2026
Portfolio rationalization exercise (discontinuing low-margin tech business in Israel, India/US labs, European mobility work) will be completed by end of FY26, with current quarter impact already baked into mid-single digit guidance.
Wage Increases: Q4 FY26 with ~100bps margin impact
Annual wage hikes will be provided to all employees worldwide in Q4, expected to impact margins by approximately 100 basis points but will be absorbed through operational improvements and mix shift.