L&T Services (LTTS) Q4 25/26 earnings summary

Executive summary

• FY 2026 revenue from continuing operations grew 8.3% year-over-year to $1.233 billion, following the divestment of the SWC business and strategic portfolio realignment.

• Large deal wins reached $855 million for FY 2026, up 40% year-over-year, with Q4 TCV at $182 million.

• The company finalized its Lakshya 31 five-year plan, focusing on six technology bets and leadership reorganization to drive growth.

• Audited standalone and consolidated financial results for FY 2026 were approved with an unmodified opinion from statutory auditors.

• Key management changes include re-appointment of Mr. Alind Saxena as Executive Director & President, appointment of Mr. Rajeev Gupta as Executive Director & CFO, and Mr. Amitabh Kant as Independent Director.

Financial highlights

• Q4 FY 2026 revenue was $306 million, up 0.3% year-over-year but down 1.7% sequentially due to portfolio rationalization.

• EBIT margin for Q4 improved 40 bps sequentially to 15.2%; FY 2026 EBIT margin was 14.5%.

• Net income for FY 2026 was INR 1,282 crores (11.7% of revenue); Q4 net income was INR 346 crores (12.1% of revenue).

• Free cash flow for FY 2026 was INR 1,280 crores, with a 100% FCF/net income ratio.

• Dividend payout for FY 2026 totaled INR 58 per share, a 48% payout ratio; final dividend of INR 40 per share recommended.

Outlook and guidance

• Targets 13%-15% revenue CAGR over the next five years, with EBIT margins in the 16%-17% range as part of the Lakshya 31 Plan.

• Expects to reach mid-16% EBIT margin by Q4 FY 2027 or earlier, driven by operational efficiencies and segment mix improvement.

• Growth expected to outpace industry averages, with continued focus on organic expansion and selective tuck-in acquisitions.

• The company will continue to evaluate the impact of new labour codes and restructuring initiatives in subsequent periods.