L&T Services (LTTS) Q1 25/26 earnings summary

Executive summary

• Revenue reached $335.3M for Q1 FY26, up 13.6% year-over-year but down 2.9% sequentially; EBIT margin at 13.3% and net income margin at 11.0%.

• Large deal TCV exceeded $200M for the third consecutive quarter, with significant wins in Sustainability and Mobility.

• Sustainability segment crossed $100M in quarterly revenue, now a $400M+ annualized business.

• Launched proprietary AI framework Plex AI/PLxAI and opened a new design center in Texas focused on AI, cybersecurity, and digital manufacturing.

• Board approved unaudited consolidated and standalone financial results, including Intelliswift Software entities from January 3, 2025.

Financial highlights

• Q1 revenue was ₹28,660 million, up 16.4% year-over-year and down 3.9% sequentially; net income was ₹3,161 million, up 1.5% quarter-on-quarter.

• EBIT margin for the quarter was 13.3%, with EBITDA margin at 16.1% and gross margin at 28.0%.

• Free cash flow for Q1 FY26 at ₹13,793 million; cash and investments stood at ₹13,138 million.

• Basic EPS at ₹29.81 for Q1 FY26.

• Consolidated total expenses were ₹25,012 million, up from ₹20,914 million year-over-year.

Outlook and guidance

• Double-digit revenue growth expected for FY26, maintaining a medium-term outlook of $2B in revenue.

• EBIT margin trajectory expected to improve in H2, targeting mid-16% by Q4 FY27 or Q1 FY28.

• Growth expected to be more back-ended, with H2 stronger than H1 as market stabilizes and large deals ramp up.