L&T Technology Services shares jumped over 6% after the company reported double-digit growth in Q1FY27 revenue and profit, supported by margin expansion and strong deal wins. Investor sentiment was further boosted by LTTS' strategic partnership with Anthropic to integrate Claude AI models into its engineering and AI platforms.
Shares of L&T Technology Services Ltd (LTTS) gained over 6% to ₹3,420 on the NSE on Wednesday after the engineering services company reported a rise in June quarter earnings and revenue. Investor sentiment also improved after LTTS announced a partnership with Anthropic to accelerate Engineering Intelligence by integrating Claude AI models across engineering processes and its AI-powered platforms.
Q1FY27 Financial Performance
L&T Technology Services’ consolidated net profit was ₹357.1 crore in Q1 of FY26-27 (quarter ending June 2026), marking an increase of 12.9% on a year-over-year basis from ₹316.1 crore posted in the same quarter of last fiscal. Sequentially, the net profit was up 7.4% from ₹332 crore in Q4 of FY25-26.
The revenue from operations increased by 11.47% to ₹2,940.1 crore from ₹2,637.5 crore year-on-year. The revenue grew by 2.9% on a quarterly basis from ₹2,858 crore.
The Earnings Before Interest and Taxes (EBIT) of the company grew by 6.1% from ₹435 crore to ₹461.3 crore quarter-on-quarter. Margins increased by 47 basis points from 15.21% to 15.68%. The margins improved by 50 basis points on a sequential basis to 15.7%.
Segment Performance and Deal Wins
LTTS reported QoQ growth of 1.5% in constant currency revenue against a decline of 1.1% in the last quarter. The Mobility segment turned positive by growing 2.3% QoQ against a 0.4% fall in the March quarter.
The Sustainability segment was the leading performer in terms of growth with a rise of 4.3% QoQ, whereas the Technology segment saw a fall of 3.1% against a fall of 6.3% in the last quarter. Europe continued to struggle as it reported a fall of 0.8% QoQ against 2.2% in Q4FY26.
LTTS closed six major deals during the quarter, and the revenue from these deals was roughly $100 million in Q1.
AI Partnership and Future Outlook
LTTS has further bolstered its AI ecosystem via collaborations with Anthropic and Databricks. According to LTTS, AI adoption is now a part of every client meeting and the nature of engagement has evolved from consultancy to execution. Brokers feel that these AI projects can aid in gaining market share and larger transformation projects. However, pricing pressure and productivity pass-through will continue to be crucial to watch out for over the medium term. Estimates for Q1 were set at ₹2,970.86 crore for revenues, ₹374.64 crore for net profit, and ₹552.17 crore for EBIT by Bloomberg.
