Large Deal TCV (Q4)
$182M
+40% YoY
Full-year large deal wins reached $855 million, up 40% over FY25.
LTTECHNOLOGY
Information Technology
15 Apr 2026
L&T Technology Services Ltd — Q4 FY26
L&T Technology Services reported Q4 FY26 revenue of ₹2,858 crore (+8.3% YoY) with EBIT margins expanding 40bps QoQ to 15.2%, driven by portfolio rationalization and operational efficiencies.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
L&T Technology Services reported Q4 FY26 revenue of ₹2,858 crore (+8.3% YoY) with EBIT margins expanding 40bps QoQ to 15.2%, driven by portfolio rationalization and operational efficiencies. The sustainability segment grew 11% YoY, while mobility stabilized with early signs of recovery in North American automotive. Large deal wins remained robust at $182 million in Q4, contributing to a full-year TCV of $855 million (+40% YoY). Management guided for 13-15% CAGR over five years (Lakshya 31) with EBIT margins of 16-17%, and expects to reach mid-16% margins by Q4 FY27 or earlier. The divestiture of the SWC business and exit from $19 million of low-margin revenue have strengthened the business baseline. Key risks include potential volatility in Middle East operations and slower-than-expected recovery in European automotive.
Key Numbers
Headcount
23,830
+522 QoQ
Net addition of 522 employees in Q4, driven by fresher onboarding and ramp-up of won deals.
DSO (Combined)
83 days
-10 days QoQ
Improved from 93 days in Q3, reflecting better collections and SWC divestment.
Patent Filings (FY26)
1,700+
+237 AI patents
Surpassed 1,700 patent filings; 237 patents in AI/GenAI alone.
Management Guidance
Mid-16% EBIT margin by Q4 FY27 or earlier
Management expects EBIT margins to reach mid-16% levels by Q4 FY27, with potential to achieve earlier.
Management guidance margins13-15% revenue CAGR over next 5 years
Under Lakshya 31, L&T Technology Services targets 13-15% dollar revenue CAGR organically, with tuck-in acquisitions possible.
Management guidance growthEBIT margin band of 16-17% over 5 years
The five-year strategic plan aims for EBIT margins in the 16-17% range, factoring in potential dilution from tuck-in M&A.
Management guidance marginsGrowth in all three segments from Q1 FY27
Management expects sequential revenue growth in mobility, sustainability, and tech segments starting Q1 FY27.
Management guidance revenueKey Risks
Middle East volatility impact on plant engineering
Analyst raised concern about Middle East war/price volatility affecting the plant engineering subsegment; management noted it's a small part of operations with no near-term impact.
low · analyst_questionEuropean automotive recovery slower than expected
While North American auto is recovering, European OEMs face market share loss and cost pressures, which could delay deal ramp-ups.
medium · management_commentaryMargin dilution from tuck-in acquisitions
Management acknowledged that tuck-in acquisitions could dilute margins, hence the 16-17% band over five years.
medium · management_commentaryRestructuring execution risk
The $19 million portfolio rationalization is complete, but any further pruning could impact near-term revenue growth.
low · data_observationNotable Quotes
We are cautiously optimistic in the near term and as part of our 5-year Lakshya 31 plan, we aspire to deliver 13 to 15% CAGR over the next 5 years with EBIT margins in the range of 16 to 17%.
We continue to aspire to get to mid-16% levels by quarter 4 FY27 of this year and if we have an ability we would like to deliver that prior to quarter 4 FY27.
Less than 50% of the revenue today comes from these bets. In five years time, we expect more than 70% of business will be coming from these six bets.
Frequently Asked Questions
What was L&T Technology Services's revenue in Q4 FY26?
L&T Technology Services reported revenue of ₹2,858 Cr in Q4 FY26, representing a +8.3% change compared to the same quarter last year.
What guidance did L&T Technology Services management give for FY27?
Mid-16% EBIT margin by Q4 FY27 or earlier: Management expects EBIT margins to reach mid-16% levels by Q4 FY27, with potential to achieve earlier. 13-15% revenue CAGR over next 5 years: Under Lakshya 31, L&T Technology Services targets 13-15% dollar revenue CAGR organically, with tuck-in acquisitions possible. EBIT margin band of 16-17% over 5 years: The five-year strategic plan aims for EBIT margins in the 16-17% range, factoring in potential dilution from tuck-in M&A. Growth in all three segments from Q1 FY27: Management expects sequential revenue growth in mobility, sustainability, and tech segments starting Q1 FY27.
What are the key risks for L&T Technology Services in FY27?
Key risks include Middle East volatility impact on plant engineering — Analyst raised concern about Middle East war/price volatility affecting the plant engineering subsegment; management noted it's a small part of operations with no near-term impact.; European automotive recovery slower than expected — While North American auto is recovering, European OEMs face market share loss and cost pressures, which could delay deal ramp-ups.; Margin dilution from tuck-in acquisitions — Management acknowledged that tuck-in acquisitions could dilute margins, hence the 16-17% band over five years.; Restructuring execution risk — The $19 million portfolio rationalization is complete, but any further pruning could impact near-term revenue growth..
Did L&T Technology Services meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full L&T Technology Services Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.