L&T TECHNOLOGY SERVICES Q2 CONCALL : H2 GROWTH ACCELERATION, 16–17% EBIT MARGIN TARGET & STRONG AI-LED DEAL MOMENTUM

• H2 FY27 REVENUE GROWTH EXPECTED TO OUTPERFORM H1, SUPPORTED BY LARGE DEAL RAMP-UPS • LONG-TERM REVENUE CAGR TARGETED AT 13–15% OVER NEXT 3–5 YEARS • LONG-TERM EBIT MARGIN ASPIRATION MAINTAINED AT 16–17% • NEAR-TERM EBIT MARGIN EXPECTED AROUND MID-16% DESPITE Q3 WAGE HIKES • Q3 FY27 WAGE HIKES EXPECTED TO CREATE 50–80 BPS MARGIN PRESSURE • LARGE DEAL PIPELINE UP OVER 25% YOY; MANAGEMENT AIMS TO SUSTAIN APPROXIMATELY $200 MN QUARTERLY DEAL WINS • AI-LED REVENUE AT $120 MN ANNUALIZED; FURTHER GROWTH EXPECTED AS NEW CONTRACTS RAMP UP • OVER 50% OF Q2 LARGE DEAL WINS WERE AI-LED, SUPPORTING FUTURE REVENUE VISIBILITY • SUSTAINABILITY BUSINESS EXPECTED TO DELIVER DOUBLE-DIGIT GROWTH IN FY27 • DATA CENTER ENGINEERING, ELECTRIFICATION & INDUSTRIAL AUTOMATION EXPECTED TO DRIVE SUSTAINABILITY GROWTH • TECH SEGMENT EXPECTED TO REMAIN MUTED IN Q3 FY27, WITH RECOVERY POSSIBLE FROM Q4 • EUROPEAN AUTOMOTIVE BUSINESS EXPECTED TO REMAIN STABLE FOR 6–9 MONTHS; RECOVERY POSSIBLE IN 9–12 MONTHS • DSO TARGET MAINTAINED AT 80–85 DAYS; EFFECTIVE TAX RATE EXPECTED AT 26–26.5% • WAGE INFLATION, EUROPEAN AUTOMOTIVE WEAKNESS & DELAYED MEDTECH PROJECTS REMAIN KEY RISKS

L&T TECHNOLOGY SER. LTD.

← Back to feed