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LTTS reported revenue of US$317.1 mn (₹3,040.4 crore)

ICICIdirect Research 21 Oct 2026 DISCLAIMER

News:  LTTS reported revenue of US$317.1 mn (₹3,040.4 crore), up 2.3% QoQ/3.3% YoY (up 2.7% QoQ/4.8% YoY in CC terms) in Q2FY27. Segment-wise, Sustainability (38.0% mix) grew 4.9% QoQ/13.4% YoY, Mobility (32.3% mix) grew 2.3% QoQ/4.7% YoY, while Tech (29.7% mix) declined 0.9% QoQ/8.5% YoY. Geography-wise, North America (60.7% mix) and Rest of World (8.2% mix) grew 4.4% and 18.3% YoY, respectively, while Europe (17.7% mix) declined 3.9% and India (13.4% mix) grew 0.6%. EBIT margin stood at 16.3%, up 60 bps QoQ/220 bps YoY with margin expansion across all segments, while net income from continuing operations stood at ₹379.6 crore, up 7.9% QoQ/19.7% YoY. Reported net income rose 53.7% QoQ/66.8% YoY to ₹548.2 crore, including a one-time gain of ₹165 crore from SWC business disinvestment. LTTS reported large-deal TCV wins of US$203 mn, with AI-related deals accounting for over 50% of the total. Headcount stood at 24,035 (up 190 QoQ), while attrition remained stable at 14.7%. The company declared an interim dividend of ₹20 per share.

View: Growth was led by Sustainability, supported by the execution of large deals won over the past six quarters, with management expecting another year of double-digit growth in the segment. Mobility sustained its momentum, driven by North American automotive, aerospace, rail and Trucks & Off-Highway, although European automotive remained muted; management expects a recovery in European auto over the next 9–12 months. Tech remained weak YoY due to the scheduled ramp-down of a MedTech programme and a delayed follow-on phase, partly offset by growth in Tech Infrastructure and Semcon. Management expects Tech to remain muted in Q3, with growth recovery from Q4 onwards. Engineering Intelligence (EI) traction is improving, with annualised EI-led revenue at US$120 mn, supported by the EIOne platform, AI ecosystem partnerships and growing data-centre engineering opportunities. With order bookings rising and the deal pipeline up over 25% YoY, management expects H2FY27 to outperform H1FY27 on both sequential and YoY growth measures. It expects to sustain EBIT margins around the mid-16% level despite Q3 wage hikes, whose estimated impact is 50–80 bps, and reiterated its medium-term aspiration of 13–15% revenue CAGR with 16–17% EBIT margins over the next five years.

Impact: Positive

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