L&T Services (LTTS) Q2 25/26 earnings summary

Executive summary

• Achieved record large deal TCV of nearly $300 million in Q2, including $100M and $60M deals, reflecting strong client engagement and robust order book despite market and geopolitical challenges.

• Revenue grew 1.3% sequentially and 10.4% year-over-year in USD constant currency; Sustainability and Tech segments delivered double-digit annual growth.

• Launched AI-first delivery model, filed 216 AI/GenAI patents, and began early monetization of proprietary AI platforms, with 1% of trailing 12-month revenue from licenses.

• Strengthened leadership with new segment heads and global large deals head, and deepened partnerships with technology and research institutions.

• Board approved unaudited consolidated and standalone financial results for Q2 and H1 FY26, with unmodified auditor opinion.

Financial highlights

• Q2 revenue: INR 30,451 million (consolidated), up 15.8% YoY and 4% sequentially; USD revenue: $337.1 million, up 1.3% sequentially and 10.4% YoY in constant currency.

• Net income for Q2: INR 3,292 million, up 4.1% sequentially, with an 11% margin.

• EBIT margin improved to 13.4%; EBITDA for the quarter was INR 4,908 million, up 6.1% QoQ.

• Free cash flow for Q2: INR 445 crores; cash and investments at INR 2,883 crores; cash and cash equivalents as of September 30, 2025: INR 11,992 million (consolidated).

• Interim dividend of INR 18 per share declared, record date October 27, 2025.

Outlook and guidance

• H2 FY26 expected to outperform H1 in both revenue and EBIT margin; Q4 anticipated as a strong growth quarter across all segments.

• Double-digit growth targeted for FY26; medium-term revenue aspiration of $2 billion reaffirmed.

• EBIT margin guidance maintained at mid-16% by Q4 FY27–Q1 FY28, with sequential improvement expected.

• Board and management remain focused on growth across all segments, with recent acquisitions expected to contribute.