L&T Technology Services shares post biggest single-day gain in over two years; Here is why

Shares of L&T Technology Services surged as much as 14.7%, its biggest single-day gain since 2024, to an intraday high of ₹4,140.50 on the BSE. On the National Stock Exchange (NSE), L&T Technology Services shares climbed as much as 14.72% to an intraday high of ₹4,143.

L&T Technology Services shares came under buying interest after the company post market hours on Monday reported its September quarter earnings.

L&T Technology Services reported a net profit of ₹548 crore in the second quarter of current financial year, marking an increase of 66% from ₹329 crore in the same period last year.

Its revenue from operations jumped 12% to ₹3,040 crore at the end of September quarter from ₹2,713 crore a year earlier. On a sequential basis, its revenue rose 3.4%.

In dollar terms, L&T Technology Services' revenue rose 4.8% to $317 million and operationally company reported stable earnings as its EBIT margin improved by 60 basis points to 16.3%.

The company recorded robust deal wins during the quarter powered by artificial intelligence (AI) related deals.

L&T Technology Services recorded large deal TCV wins of $200+ million in Q2, with AI-related deals accounting for over 50% of the total. Wins included one $75 million deal, one $30+ million deal, one $25 million deal and six $10+ million each, the company said in a press release.

"With our order backlog and pipeline both improving year on year and several large deals in play, we expect revenue momentum to strengthen further in H2 while sustaining healthy EBIT margins. This progress supports our long-term aspiration of 13-15% revenue CAGR with EBIT margins in the 16-17% range over the next five years," said Amit Chadha, CEO & Managing Director, L&T Technology Services.

At the end of Q2FY27, the patents portfolio of L&T Technology Services stood at 1,808, out of which 1,085 are co-authored with its clients and the rest are filed by LTTS, the company added.

The company announced an interim dividend of ₹20 per share.

What global investment firms said on Q2

Global investment firm Citi in a note said that sustaining growth/margin trends were key monitorable metrics in Q2.

Nomura in said that growth was driven by data centres, energy transition, robotics and plant engineering.

JPMorgan noted that Q2 print was a beat on both revenues and margins, for the second quarter in a row. It increased FY27-29 its revenue and earnings growth estimates by 1-3%.

As of 10:43 am, L&T Technology Services shares traded 12.08% higher at ₹4,048, outperforming the NFTY LARGEMIDCAP 250 index which was down 0.4%.