LTTS Q1 FY26 Results: Revenue up 16.4%, margin 13.3%

Key takeaway from the June 2025 quarter

L&T Technology Services (LTTS) reported its Q1 FY26 results for the quarter ended June 2025 with revenue from operations at ₹2,866 crore. The company’s net profit came in at ₹315.7 crore, reflecting modest year-on-year growth. EBIT margin was reported at 13.3% for the quarter, with management commentary attributing margin pressure to wage hikes. Alongside the headline numbers, the quarter also featured updates on segment performance, deal momentum, and cash flow. The dataset in the source includes multiple quarter references and formats, including a detailed table of quarterly line items and separate narrative highlights. Readers tracking sequential movement should note that the source cites two different sequential comparisons for revenue.

Q1 FY26 headline financials

For Q1 FY26, LTTS reported revenue of ₹2,866 crore, up 16.4% year-on-year from ₹2,461.9 crore. Profit after tax (PAT) was ₹315.7 crore, up 0.7% year-on-year from ₹313.6 crore, according to the consolidated profit figure cited for the quarter ended June 2025. Diluted EPS was reported at ₹29.77, and basic EPS was cited at ₹29.81 in the result highlights. Operating income in the quarterly table stood at ₹381.3 crore, marginally lower on a year-on-year basis versus ₹383.6 crore. Net income before taxes was shown at ₹432.5 crore in the same table. In US dollar terms, LTTS reported USD revenue of $135.3 million for the quarter, up 13.6% year-on-year.

Expenses rose, with a sharp move in “other operating expenses”

Total operating expense in the quarterly table was ₹2,484.7 crore for the quarter ended Jun 25, compared with ₹2,078.3 crore in Jun 24. Selling, general and administrative (SG&A) expenses were ₹1,591.2 crore versus ₹1,331.7 crore a year earlier. Depreciation and amortisation was ₹81.1 crore, compared with ₹72.6 crore in the year-ago quarter. The table also showed “other operating expenses total” at ₹812.4 crore, up from ₹674.0 crore year-on-year. On a quarter-on-quarter basis in the same table, other operating expenses jumped from ₹136.4 crore to ₹812.4 crore. Separately, the narrative results note said total expenses rose 19.6% year-on-year to ₹2,501.2 crore from ₹2,091.4 crore.

Sequential revenue: two different comparisons cited in the source

The quarterly table (Jun 25 vs Mar 26) shows total revenue of ₹2,866.0 crore in Jun 25 and ₹2,226.9 crore in Mar 26, indicating a 46.64% quarter-on-quarter increase on that specific comparison. However, another section in the provided text states that revenue declined 3.9% sequentially from ₹2,982.4 crore in the previous quarter. A separate “Q1 FY26 Earnings Results” note also cites Q4 FY25 revenue at ₹2,819 crore and mentions a 1.6% QoQ rise. These figures appear in different parts of the same source bundle and may reflect different reporting bases or period references. What is consistent across the source is the Q1 FY26 revenue level of ₹2,866 crore and the year-on-year increase of 16.4%.

Cash flow and balance sheet snapshot

LTTS reported free cash flow (FCF) of negative ₹28 crore in Q1 FY26, with the source attributing this primarily to seasonal factors. Cash and investments were reported at ₹2,431 crore at the end of the quarter. The same section also states that net income of about ₹316 crore represented about 11% of total revenue. These data points provide context on cash conversion during the quarter, even as reported profits remained broadly stable. The company’s quarterly commentary also referenced segment seasonality affecting sequential performance.

Segment and operating commentary: mobility softness, sustainability milestone

The source notes that the Mobility vertical, contributing about 30% of revenue, declined 2.1%, impacted by softness in the global auto sector. It also cites seasonality in the “SmartWorld” segment as a key driver behind a quarter-on-quarter decline in USD revenue of 2.9% in one comparison. Sustainability, described as the most profitable segment in the provided text, was reported to have grown 16.4% year-on-year and 4.1% quarter-on-quarter. The same commentary said sustainability crossed the $100 million quarterly milestone and is now a “$100 million plus” annual business on a run-rate basis. It further states that all three segments are at “$100 plus” annualised revenue. The company also reported that employee headcount reached 23,626.

Other quarter highlights included in the source

The provided material also includes LTTS’s earlier quarterly disclosures across periods, along with margins and dividend details. For Q3 FY26, the source lists revenue of ₹2,923.5 crore, EBIT of ₹427.1 crore and net income of ₹329.1 crore. Another set of quarterly figures in the source lists revenue of ₹2,982.4 crore, USD revenue of $145.1 million, EBIT of ₹393.9 crore and net income of ₹311.1 crore for a quarter referenced as having 12.4% QoQ and 17.5% YoY revenue growth. Dividend details cited include an interim dividend of ₹18 per share with record date October 27, 2025, and an interim dividend of ₹17 per share with record date October 25, 2024. The source also states that patent filings crossed 1,600, including 216 patents in AI and GenAI.

FY26 outlook and full-year context

For FY26, the source states revenue of USD 1,321 million for the year, up 4.9%. It further adds that revenue from continuing operations delivered growth of 8.3% to USD 1,233 million, while total revenue including discontinued operations grew 5% to USD 1,321 million. Management guidance referenced in the source includes a stated focus on double-digit growth for FY26 and a medium-term revenue goal of USD 2 billion. These figures set a broader context for how the company is positioning its growth ambitions alongside near-term margin and segment headwinds. The commentary also indicates continued growth in major markets such as North America and Europe on a sequential basis.

Key numbers table (Q1 FY26)

What investors typically track from here

The Q1 FY26 print shows strong year-on-year revenue growth but relatively muted profit growth, with costs rising and EBIT margin at 13.3%. Investors usually monitor whether deal momentum translates into sustained revenue conversion, and whether segment pressures like automotive softness ease. The cash flow update is also important given the negative free cash flow in the quarter, even as the company maintained a sizeable cash and investments balance. Future commentary around wage costs, utilisation, and the pace of recovery in affected verticals could influence margin visibility. Any updates on FY26 growth execution against the stated double-digit ambition and the medium-term USD 2 billion goal will remain a focus in subsequent quarters.

Conclusion

LTTS reported Q1 FY26 revenue of ₹2,866 crore and net profit of ₹315.7 crore, with EBIT margin at 13.3% and year-on-year revenue growth of 16.4%. The quarter included segment commentary pointing to mobility weakness and sustainability growth, alongside negative free cash flow of ₹28 crore and cash and investments of ₹2,431 crore. Next cues will come from subsequent quarterly updates, including progress on large deals, segment recovery trends, and any reaffirmation or refinement of FY26 growth priorities.