‘We believe FY26 will be better than FY25; deal pipeline is strong’

There have been currency losses that we’ve had because of Euro, JPY, SEK with dollar and all that.
Amit Chadha
CEO & Managing Director, L&T Technology Services Limited
Amit Chadha CEO & Managing Director, L&T Technology Services Limited
Updated on
3 min read

L&T Technology Services Limited (LTTS), an engineering and technology services company, had a strong third quarter, as its revenues jumped 9.5% y-o-y to Rs 2,653 crore. The company won eight large deals in the December quarter. In an interaction with TNIE’s Uma Kannan, Amit Chadha, CEO & Managing Director, LTTS, said the large deal pipeline continues to be robust and that they expect FY26 to be better than FY25. Edited excerpts:

LTTS Q3 net profit has declined 4.1% to R322 crore. What are the factors that caused this drop?

If we look at the EBIT margin, it has improved from 15.1% to 16.2% operationally and then there is a 0.3% charge of the M&A transaction that we did, and therefore, non-operational combined, it has come to 15.9%. So, there is an improvement from 15.1% to 16.2% after taking in 100 bps impact of increments in the quarter.

There have been currency losses that we’ve had because of Euro, JPY, SEK with dollar and all that. I would actually focus on the EBIT part rather than the PAT (profit after tax) part for the current quarter because of these fluctuations with the dollar that have happened, that’s why we are stressing on constant currency. If we look at our growth, the constant currency growth is about 8.7% year-on-year, which is probably the best in the industry so far, and 3.1% quarter-on- quarter.

Tell us about your deal wins in the third quarter and how the large deal pipeline looks like in coming quarters?

Our deal wins have been the highest ever. We closed eight large deals- one $50 million, two $35 million, two $25 million, and three $10 million deals. We are fairly pleased with what we have been able to do. We see a lot of activity in the market. The large deal pipeline continues to be robust aided by ongoing engagements with customers on both new age product and platform development and business transformation.

How are you looking at the demand environment and do you expect any major changes in the coming quarters?

We believe FY26 will be better than F525. While in FY25, we will see 10% revenue growth, FY 26 will be higher than 10%. Also, our mobility is not just auto, we had a one-off this quarter where mobility was really down, but next quarter onward mobility will be back. Next year, sustainability and tech sectors will grow faster than mobility because sustainability is more profitable for us. Parts of tech are also profitable for us. In the third quarter, in tech, we grew by 11% sequentially driven by ramp ups in Medtech, Hyperscalers and Communication providers where we leveraged our SWC (Smart World & Communication) capabilities.

Sustainability grew by 4% sequentially helped by plant modernisation and automation demand. Our strategy of investing upfront in the first half of the current fiscal has started yielding results with growth and margin improvement. With the Intelliswift acquisition now complete, we have formed a new sub-segment called Software & Platforms through which we will strengthen our foothold in Hyperscalers and enter the Service-led sectors.

During the quarter, you inaugurated the NVIDIA AI Experience Zone at the Bengaluru design hub. How are you leveraging AI to enhance clients’ experience?

AI/GenAI has been leveraged in two of the deals that we have won – one of the medical deals, mobility deal and one of the media deals. We are investing in agentic AI as well domain specific micro LLMs (large language models) etc. We do believe that it will continue to help us. As we move forward, I’m really excited that this provides an excellent opportunity to grow. We are also hiring 2,000 freshers in FY26.

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