Q4 earnings impact: LTTS shares decline over 6% as firm reports 9% fall in net profit

Sequentially, its net profit declined 3.5% from ₹322.4 crore in Q3 FY25.

Meanwhile, the technology firm’s revenue from operations jumped 17.5% year-on-year (YoY) to ₹2,982.4 crore in the reporting quarter. On a quarter-on-quarter (QoQ) basis, revenue increased by 12.4% as compared to ₹2,653 crore in the December quarter.

L&T Technology Services also announced a final dividend of ₹38 per equity share for the financial year ended March 31, 2025. The record date to determine shareholder eligibility for the dividend is yet to be announced.

The company said that the dividend payment would be made within 30 days after the approval from the shareholders.

Commenting on the performance of the company, L&T Technology Services CEO and MD Amit Chadha said, "In Q4, we continued our large deal momentum, recording the highest-ever TCV bookings. The large deal pipeline has been robust on the back of value enhancement across the clients’ product lifecycle and digital transformation journey. We delivered 8.9% revenue growth in constant currency in FY25. In Q4, we had a strong sequential growth of 10.7%, which was led by the tech and sustainability segments in a quarter of tightening market conditions."

He added, “As we step into FY26, we see the technology landscape tilting sharply towards AI and Automation, providing us with new opportunities to develop AI-led solutions. Based on the large deal bookings closed during the quarter, in our view, FY26 will be a better year than FY25. We also reaffirm our medium-term outlook of USD 2 billion revenue.”

The company’s earnings before interest and tax (EBIT) stood at ₹393.9 crore for the March quarter, down 6.6% QoQ from ₹421.9 crore in Q3 FY25. The EBIT margin stood at 13.2% in the reporting period.

The company’s dollar revenue jumped 13.1% YoY to $345.1 million during the quarter, while the EBITDA margin increased to 19.8%. Meanwhile, the operating margin for Q4 FY25 was at 13.2%, down from 15.9% in Q3 FY25.

For the full financial year ended March 31, 2025, the company posted a revenue of ₹10,670.1 crore, up 10.6% YoY, while the net profit was at ₹1,266.7 crore. Moreover, the company’s revenue in constant currency terms jumped 8.9% to $1.26 billion.

On Friday, shares of L&T Technology were down 6.14% to ₹4,202.80 apiece.

In a month’s time, the stock has declined almost 8.5%, while since October 25, 2024, that is a six-month period, the share has plunged over 18%.

Year-to-date, L&T Technology has tanked almost 10%.

The company’s market capitalisation stands at ₹44,805.11 crore, according to NSE data.