L&T Tech Q1 results: Consolidated net profit increases marginally YoY to ₹316 crore; revenue soars over 16%

L&T Technology Services reported a marginal 0.7% year-on-year (YoY) growth in its consolidated net profit to ₹316.1 crore for the June quarter of FY26 on Wednesday, July 16. In the same period last year, the company had clocked a profit of ₹311.1 crore.

The Vadodara-headquartered company's revenue from operations surged 16.4% YoY to ₹2,886 crore in the quarter under review, as against ₹2,982.4 crore in the first quarter of FY25.

During the quarter, L&T Tech earned 29.6% of its revenue from its mobility segment, falling 4.4% YoY. It's sustainability vertical contributed 30.8% to its revenue mix, up by 16.4% YoY. Tech became the biggest segment-wise contributor to the company's revenue at 39.6%, steeply rising by 29.4% YoY.

The firm generated 54.1% revenue from its North America market, followed by India at 21% and Europe at 17.1% during the first quarter of FY26. Furthermore, its ROW (rest of the world) market contributed 7.8% to its revenue.

L&T Tech's EBITDA (earnings before interest, tax, depreciation and ammortisation), also known as operational profit, stood at ₹462.4 crore in the quarter, jumping 1.4% YoY from ₹456.2 crore in Q1FY25. However, its EBITDA margin contracted to 16.1% in Q1FY26 from 18.5% in the year-ago period.

For the third consecutive quarter, the company's large trade deals exceeded $200 million in total contract value (TCV). During Q1FY26, L&T Tech bagged one $50 million deal, three deals within the $20 million to $30 million range and six deals worth more than $10 million.

Commenting on the Q1 results, Amit Chadha, the CEO and MD of L&T Tech, said: "In this dynamic macro environment, our multi-segment diversification strategy has proven resilient, with the Sustainability segment achieving double-digit annual growth. The ‘Go Deeper to Scale’ strategy and investments in new age technologies are leading to stronger partnerships with clients and a robust TCV booking."

With rapidly advancing AI and automation, the company's client engagement and deal wins have been increasing. Furthermore, the firm deployed multiple programs for its clients in AI and have filed 206 patents for the same.

"In Q1, Sustainability grew 4% sequentially and 16% annually to cross the $100 million milestone and is now a $400 million plus annual business on a run-rate basis. We now have all three segments $400+ million annualised revenues," he added.

"Additionally, we are launching PLxAI, our proprietary AI framework, which accelerates product development lifecycle for global clients. PLxAI combines smart prompting, contextual intelligence, and agentic workflows to significantly reduce product lifecycle. PLxAI was originally incubated in the Mobility segment, but has now been scaled and propagated to other segments using our multi-vertical crosspollination approach.

To service specific demand in key areas aligning with future growth, we inaugurated a new design center in Plano, Texas. The center is focused on cutting-edge technologies, cybersecurity and AI, expanding our footprint in the U.S. Market," Chadha stated.

L&T Tech maintains medium-term outlook

The IT firm maintained its medium-term growth outlook of $2 billion in revenue. It expects to clock double-digit growth in FY26, bolstered by an increased order book and a focus on resilience and profitable growth.

L&T Tech said that it expects EBIT margin, at 13.1% in Q1FY26, to improve in the upcoming quarters as growth gets broad-based segment growth.

Shares of L&T Tech settled at ₹4,343.00 (-0.17 %) on the National Stock Exchange (NSE) on Wednesday. However, the results were announced after the market closed.