L&T Technology Services signs multi-year framework agreement with Shell, shares trade in green

Under the multi-year framework agreement, LTTS will provide integrated engineering and procurement services along with digital engineering services, data governance for capital projects and digital project management consultancy for Shell’s global assets as necessary.

Amit Chadha, CEO and Managing Director of LTTS said the new agreement with Shell as their engineering partner further builds on the company’s long and continuous relationship in the area of information management and allied engineering services. “With our extensive experience and capabilities in serving energy sector clients, we are excited to work with Shell and contribute in achieving their strategic objectives,” he said.

In late July, LTTS and PS Technology (PST), a wholly-owned subsidiary of Union Pacific Railroad announced a strategic partnership around mobility. The companies signed a memorandum of understanding (MoU) to focus on the design, development and supply of advanced AI-based simulation technologies, which is expected to significantly enhance the operational efficiency and safety of rail infrastructure in India and overseas.

During the first quarter of fiscal year 2025, LTTS reported a 7% year-on-year (YoY) rise in its revenue at ₹2,461.90 crore. The company’s dollar revenue stood at $295 million, registering a growth of 6% YoY in constant currency terms.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 0.7% to ₹456.20 crore. Net profit rose 0.8% YoY to ₹313.60 crore.

The firm’s EBITDA margins declined to 18.5% during the quarter as compared to 19.7% in the same period last year. Net profit margin fell to 12.7% from 13.5% in Q1FY24.

During the quarter, LTTS won two $30 million deals, two $15 million deals and three deals with total contract value (TCV) of $10 million. The company said that in artificial intelligence (AI), it is accelerating its investments and innovation focus that led to a total of 61 patents being filed so far.

Shares of the firm have lost over 6.5% since the beginning of the year. The stock has gained over 14% in the last one year.