L&T Services (LTTS) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw strong performance with 3.1% constant currency revenue growth, led by Tech (11.1%) and Sustainability (4%) segments, while Mobility declined 5.2% due to sector-specific challenges.

• Achieved highest-ever large deal bookings in Q3, including a $50M deal and several others above $10M, with a robust pipeline across all segments.

• Intelliswift acquisition completed for up to USD 110 million, enhancing AI, digital, and software engineering capabilities and expanding addressable markets in retail, fintech, and healthcare.

• Segment reorganization from five to three segments (Mobility, Sustainability, Tech) effective April 1, 2024, to streamline structure and reporting.

• Record 230+ nominations at the Digital Engineering Awards and multiple industry recognitions, highlighting innovation and client engagement.

Financial highlights

• Q3 FY25 consolidated revenue at ₹26,530 million, up 3.1% QoQ and 9.5% YoY; USD revenue at $311.9 million, up 1.7% QoQ and 7.3% YoY.

• Gross margin at 29%, EBIT margin at 16.2% (excluding one-time M&A expenses), and net income at ₹3,224 million, up 0.9% QoQ.

• EBITDA for Q3 FY25 was ₹4,947 million, up 6.2% QoQ and 1.4% YoY.

• Free cash flow at a record ₹638 crores for Q3; cash and investments at ₹3,290 crores.

• Basic EPS for Q3 FY25 at ₹30.47; diluted EPS at ₹30.40.

Outlook and guidance

• All three segments expected to grow in Q4 FY25 and beyond, with FY25 revenue guidance near 10% including Intelliswift and near 8% organic.

• EBIT margin aspiration near 16% organically; consolidated EBIT margin expected near 15% in Q4 FY25, improving to mid-16% by Q4 FY27–Q1 FY28.

• Medium-term ambition: $2B revenue with 17%-18% EBIT margin.

• Segment reorganization to streamline structure and reporting.