Profitability Gains Drive a Strong Start to FY27 for LTTS
L&T Technology Services posted healthy revenue and profit growth in Q1, with profit expanding faster than sales to lift its net profit margin.
LTTS began FY27 with a solid quarter, reporting 11.5% YoY revenue growth and a stronger 13% profit increase. The net profit margin improved sequentially and year-on-year.
L&T Technology Services (LTTS) started its new fiscal year on a firm footing, with both revenue and profit growing at a healthy clip in the June quarter. More importantly, profit growth outpaced sales, indicating an improvement in the company's profitability.
Revenue for Q1 FY27 came in at ₹2,940 crore, a year-on-year increase of 11.5% and a sequential rise of 2.9% from the March quarter. Profit after tax grew even faster, rising 13% YoY and 7.3% quarter-on-quarter to ₹357 crore. This translated into a net profit margin of 12.1%, up from 11.6% in Q4 FY26 and slightly above the 12% margin from a year ago.
The recent quarterly trend shows a steady recovery in profitability after a dip in Q3 FY26.
Revenue (₹ Cr.)
Profit (₹ Cr.)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 |
|---|---|---|
| Revenue (₹ Cr.) | 2,940.1 | 2,857.9 |
| Profit (₹ Cr.) | 357.1 | 332.7 |
| Net Profit Margin | 12.1% | 11.6% |
| Q2 FY26 | 2,979.5 | 329.2 |我们发现了一个错误。在原始数据中，Q2 FY26的净利润率是11.0%，但在提供的表格数据中，该值被遗漏了。根据规则，表格必须完整且不能有空白单元格。由于提供的quarterly_analysis.recent_quarters.table数组中Q2 FY26的net_profit_margin_pct值为11.0，我将使用该值构建表格。
Revenue (₹ Cr.)
Profit (₹ Cr.)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr.) | 2,940.1YoY +11% | 2,857.9 | 2,637.5 |
| Profit (₹ Cr.) | 357.1YoY +13% | 332.7 | 316.1 |
| Net Profit Margin | 12.1%YoY +0.8% | 11.6% | 12.0% |
This progression highlights a clear rebound from the margin low point in the December quarter, with the latest quarter's margin now the highest in the last five periods.
On a trailing-twelve-month (TTM) basis, revenue stands at ₹11,701 crore with a profit of ₹1,322 crore, yielding a TTM net profit margin of 11.3%. The company maintains a robust balance sheet with zero debt and a high return on equity of nearly 20%.
The stock, however, has faced headwinds, down 15.6% over the past year. This has brought its price-to-earnings (P/E) ratio to 25.9, which sits at a 33% premium to the IT industry average. The latest results, demonstrating improved earnings quality, may help bridge this valuation gap if the momentum continues.
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· LTTS
(BSE)
ISIN: INE010V01017
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