L&T Technology Services Limited Q1 FY2027 Results
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Overview
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Detailed Analysis
Sentiment
Positive
Executive Summary
LTTS Q1 FY2027: Revenue ₹2,940.1 Cr (vs ₹2,637.5 Cr YoY), PAT ₹357.1 Cr (vs ₹316.1 Cr YoY)
In Q1 FY2027 LTTS reported consolidated revenue of ₹2,940.1 Cr and consolidated net profit of ₹357.1 Cr, representing YoY growth versus Q1 FY2026; operating profitability remained healthy with PBT of ₹476.0 Cr. The quarter includes the continued presentation of the Smart World and Communication business as discontinued following a Business Transfer Agreement. The company recorded an exceptional item in the prior quarter related to New Labour Codes and restructuring and allotted 70,450 equity shares on exercise of ESOPs during the quarter. Management flagged no modification by auditors (limited...Revenue (Consolidated) Q1 FY2027p.5
₹2,940.1 Crvs ₹2,637.5 Cr in Q1 FY2026
Net Profit (Consolidated) Q1 FY2027p.5
₹357.1 Crvs ₹316.1 Cr in Q1 FY2026
Profit before tax (Continuing) Q1 FY2027p.5
₹476.0 Crvs ₹410.7 Cr in Q1 FY2026
Basic EPS (Continuing + Discontinued) Q1 FY2027p.5
₹33.62vs ₹29.81 in Q1 FY2026
Net Profit from continuing operations Q1 FY2027p.5
₹352.3 Crvs ₹300.1 Cr in Q1 FY2026
Sustainability segment revenue Q1 FY2027p.5
₹1,090.4 Crvs ₹881.8 Cr in Q1 FY2026
Key Highlights
8
Board approved consolidated Q1 FY2027 results and took on record limited review reports from statutory auditors.
Comparatives have been restated to present Smart World and Communication business as discontinued after Business Transfer Agreement executed March 25, 2026.
Sustainability led segment growth delivering ₹1,090.4 Cr in revenue and segment result of ₹317.8 Cr, driving consolidated outperformance.
Quarter included allotment of 70,450 equity shares on exercise of employee stock options, modestly increasing share count.
Total other comprehensive income swung positive at ₹1,070 million in Q1 FY2027, reversing prior negative OCI in Q1 FY2026.
Unallocable corporate expenses remained elevated at ₹212 million in Q1 FY2027 influencing segment-to-PBT bridge.
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Key Highlights
8
Board approved consolidated Q1 FY2027 results and took on record limited review reports from statutory auditors.
Comparatives have been restated to present Smart World and Communication business as discontinued after Business Transfer Agreement executed March 25, 2026.
Sustainability led segment growth delivering ₹1,090.4 Cr in revenue and segment result of ₹317.8 Cr, driving consolidated outperformance.
The prior quarter and year included exceptional items (₹370 million and ₹724 million) relating to restructuring and New Labour Codes impacting comparatives.
Quarter included allotment of 70,450 equity shares on exercise of employee stock options, modestly increasing share count.
Total other comprehensive income swung positive at ₹1,070 million in Q1 FY2027, reversing prior negative OCI in Q1 FY2026.
Unallocable corporate expenses remained elevated at ₹212 million in Q1 FY2027 influencing segment-to-PBT bridge.
Tech segment revenue was largely flat YoY at ₹900.9 Cr while Tech segment result expanded versus Q1 FY2026 supporting margins.
Guidance & Outlook
4
Company has completed transfer of SWC business on a going concern basis which may focus management on core segments going forward.
Management noted limited review with unmodified conclusion by statutory auditors for Q1 FY2027, supporting continuity of reporting.
Company continues to classify segment composition under Mobility, Sustainability and Tech indicating strategic focus areas for investment.
Re‑appointment of an independent director (Mr. Luis Miranda) approved for a second term subject to shareholder approval, supporting board continuity.
Risks & Concerns
5
Exceptional items tied to New Labour Codes and restructuring (₹370m/₹724m) indicate potential future one-off or transition costs in workforce/legal area.
Discontinued operations still contribute to quarterly profit (₹48 million) which may complicate comparability until fully transitioned.
Unallocable expenses of ₹212 million in Q1 FY2027 remain a source of margin pressure outside segment control.
Finance costs and depreciation together remain a steady outflow (finance costs ₹144 million and depreciation ₹870 million) that reduce PBT conversion.
Six subsidiaries' interim financials (total revenue ₹159 million) were not reviewed by their auditors and were provided by management, representing limited audit coverage risk.
AI-generated analysis. May contain inaccuracies — verify against original sources.