L&T Tech Q1 Dip: Analysts Reaffirm ₹4,850 Target Amid 12.9% Potential Returns

Fast Summary

• Company Performance: L&T Technology Services (LTTS) revenue for Q1FY26 was ₹28.6 billion, a 13.6% YoY increase but a 2.8% QoQ decline, below the estimated ₹29.1 billion.
• Profit Margins: Net profit stood at ₹3.1 billion, with EBIT margins at 13.3%. Yearly margin declined slightly but improved compared to the previous quarter.
• Sustainability Success: Sustainability segment achieved over $100 million quarterly run-rate and remains LTTS’s most lucrative vertical.
• AI Investment: LTTS intensified efforts in AI by launching over 40 agents/tools, applying for 200+ AI-related patents, and reporting that 30% of its customers use full-scale AI programs.
• Deal Wins: Secured big-ticket deals worth $200 million for three consecutive quarters; notable growth in automotive AI with a $50 million SDV contract.
• Rating & Target Price: Analysts maintained an “ADD” rating with a target price of ₹4,850-representing a potential upside of 12.9%.
• Future Outlook: Management aims for mid-16% EBIT margins by Q4FY27 through cost controls and focusing on high-margin segments.

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