L&T Technology Services Ltd logo

L&T Technology Services Ltd

LTTS NSE

Incorporated in 2012, L&T Technology Services is an engineering and technology services company, a subsidiary of Larsen & Toubro, providing design, development, testing, and maintenance services across products and processes. [1]

AI Verdict: HOLD Confidence: 5%

LTTS trades at a PE of 28.3x with decelerating profit growth (7% TTM vs 16% 5-year CAGR) and negative 1-year stock returns of -24%. While the company is virtually debt-free with strong ROE of 22-24% and a healthy dividend payout of 44.9%, the majority of analysts (51.85%) recommend holding, reflecting limited near-term catalysts.

Key Fundamentals

SmallcapIT Enabled ServicesInformation Technology
Market Cap
₹35,429 Cr
Volatility
Moderate
P/E Ratio
27.53
EBITDA
₹2,156 Cr
Return on Equity
24.43%
Debt to Equity
0.09
Book Value
₹610.24
EPS
₹123.42
52W High
₹4,726
52W Low
₹3,010

Technical Indicators

Key Insights

Strengths

2
  • Company is almost debt free.
  • Company has been maintaining a healthy dividend payout of 44.9%

Growth Rate

Revenue Growth
3.10% ↘
Net Income Growth
-2.65% ↘
Cash Flow Change
-1.76% ↘
ROE
-8.54% ↘
ROCE
-11.26% ↘
EBITDA Margin (Avg.)
-0.52% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

LTTS trades at a PE of 28.3x with decelerating profit growth (7% TTM vs 16% 5-year CAGR) and negative 1-year stock returns of -24%. While the company is virtually debt-free with strong ROE of 22-24% and a healthy dividend payout of 44.9%, the majority of analysts (51.85%) recommend holding, reflecting limited near-term catalysts.

Bull Case 7
  • Company is almost debt-free, providing financial flexibility and lower risk during economic downturns
  • Consistent ROE averaging 23-26% over 3-10 year periods, with last year at 22%, indicating efficient capital allocation
  • Healthy dividend payout of 44.9% with current dividend yield of 1.7%, rewarding shareholders consistently
  • Compounded sales growth of 14% TTM shows revenue momentum is intact and accelerating from the 8% 3-year CAGR
  • Long-term compounded sales CAGR of 14-15% over 5-10 years demonstrates durable demand for engineering R&D services
  • Price-to-book of 5.59x is supported by asset-light IT services model with high return ratios of 22%+ ROE
  • 5-year compounded profit CAGR of 16% reflects strong historical earnings compounding ability
Bear Case 8
  • Stock has delivered -24% returns over the past 1 year, significantly underperforming broader markets
  • 3-year stock CAGR of -6% indicates sustained value destruction for medium-term investors
  • Profit growth has decelerated sharply to 7% TTM from 16% 5-year CAGR, indicating margin pressure
  • 22.22% of analysts (6 out of 27) recommend selling, a notable bearish contingent for an IT mid-cap
  • Only 25.93% of analysts (7 out of 27) have buy ratings, with majority at hold (51.85%), reflecting tepid conviction
  • PE of 28.3x is demanding given the TTM profit growth of only 7%, implying a PEG ratio above 4x
  • 3-year compounded profit growth of just 4% suggests structural slowdown in earnings expansion
  • Market cap of Rs 35,361 crore with declining stock price trend raises questions on valuation sustainability

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Positives 3
  • Strong Q4 revenue up 14% YoY Jun 11

    LTTS reported Q4 FY26 total income of ₹2,226.90 crore with 13.94% YoY growth, operating profit up 18.04% to ₹346.20 crore, and PAT growth of 18.41% to ₹281.10 crore with operating margin expanding to 15.55% from 11.95%.

  • Databricks Industrial AI partnership Jun 11

    LTTS formed a strategic go-to-market partnership with Databricks to co-deliver Industrial AI solutions across 600+ plants globally, targeting predictive asset reliability, energy optimization, and sustainability analytics for asset-intensive enterprises.

  • ₹40 dividend, quarterly revenue $300M+ Jun 01

    AGM approved final dividend of ₹40 per share for FY26, with the company highlighting quarterly revenues crossing USD 300 million and a strategic pivot towards deep-tech.

Neutral 1
  • Promoter holds 73.57% unencumbered Jun 15

    Larsen & Toubro declared no encumbrance on its 73.57% promoter stake in LTTS under SEBI takeover regulations, signaling no pledge or leverage against the holding.

TL;DR: LTTS is executing well with double-digit revenue and profit growth in Q4 FY26, expanding margins, and a meaningful AI partnership with Databricks that strengthens its industrial tech positioning. The ₹40 dividend and $300M quarterly revenue milestone reflect confidence in cash generation. No material headwinds surfaced in recent news. The trend is improving, with the Databricks alliance and deep-tech pivot providing a credible growth runway if industrial AI demand scales as expected.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
2,371
2,301
2,386
2,422
2,538
2,462
2,573
2,653
2,638
2,866
2,980
2,787
2,858
Expenses
1,890
1,849
1,911
1,934
2,035
2,006
2,107
2,158
2,205
2,404
2,489
2,289
2,336
Operating Profit
480
453
476
488
503
456
466
495
433
462
491
498
521
OPM %
20%
20%
20%
20%
20%
19%
18%
19%
16%
16%
16%
18%
18%
Other Income
50
48
41
62
56
62
65
34
80
68
66
9
31
Interest
11
12
13
13
13
13
12
16
16
16
16
15
17
Depreciation
57
57
68
72
75
73
78
73
81
81
93
86
86
PBT
462
431
436
466
471
433
441
440
416
432
448
406
449
Tax %
26%
28%
28%
28%
28%
27%
27%
27%
25%
27%
27%
25%
26%
Net Profit
341
312
316
337
341
314
320
320
310
316
329
303
333
EPS in Rs
32.2
29.44
29.84
31.79
32.24
29.63
30.2
30.45
29.38
29.79
31.01
28.55
31.33
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
2,619
3,066
3,248
3,747
5,078
5,619
5,450
6,570
8,816
9,647
10,670
10,996
Expenses
2,220
2,547
2,663
3,172
4,164
4,509
4,442
5,155
7,055
7,728
8,778
9,061
Operating Profit
399
519
586
576
915
1,110
1,007
1,415
1,761
1,919
1,892
1,935
OPM %
15%
17%
18%
15%
18%
20%
18%
22%
20%
20%
18%
18%
Other Income
25
84
58
193
223
209
154
152
203
207
210
200
Interest
3
2
2
2
2
36
46
44
44
51
56
64
Depreciation
48
59
62
89
104
183
218
214
234
272
305
345
PBT
372
542
579
678
1,031
1,100
897
1,309
1,686
1,804
1,741
1,726
Tax %
16%
23%
27%
25%
26%
25%
26%
27%
28%
28%
27%
26%
Net Profit
311
419
425
507
768
822
666
961
1,216
1,306
1,264
1,281
EPS in Rs
10.36
55.88
41.78
49.39
73.61
78.33
63.14
90.68
115
123
120
121
Div. Payout %
50%
26%
29%
32%
29%
27%
35%
39%
39%
41%
46%
48%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
300
300
20
20
21
21
21
21
21
21
21
21
Reserves
2
766
1,465
1,916
2,458
2,748
3,452
4,141
4,414
5,306
6,059
6,452
Borrowings
969
196
102
70
70
30
480
477
454
659
578
578
Other Liabilities
507
681
644
696
802
1,504
1,113
1,438
3,295
2,497
2,970
3,438
Total Liabilities
1,778
1,942
2,232
2,702
3,352
4,303
5,066
6,077
8,184
8,483
9,627
10,489
Fixed Assets
569
621
614
709
780
1,174
1,282
1,283
1,303
1,613
2,245
2,250
CWIP
0
14
2
0
0
9
12
10
6
13
28
12
Investments
0
56
195
221
575
642
1,515
1,478
2,284
1,493
1,310
1,896
Other Assets
1,208
1,252
1,421
1,772
1,997
2,479
2,257
3,307
4,590
5,365
6,045
6,330
Total Assets
1,778
1,942
2,232
2,702
3,352
4,303
5,066
6,077
8,184
8,483
9,627
10,489
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
289
544
388
409
806
638
1,332
1,006
1,313
1,493
1,481
1,455
Investing
-667
-176
-178
-196
-509
-222
-1,005
-448
-578
-233
-509
-443
Financing
464
-383
-222
-132
-245
-406
-363
-498
-445
-658
-718
-800
Net Cash Flow
86
-15
-12
81
52
10
-36
60
290
602
254
213
Free Cash Flow
236
418
343
324
718
487
1,257
851
1,134
1,251
1,379
1,280
CFO/OP
89
137
93
101
119
77
157
96
101
105
104
96
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
96
86
80
94
76
90
83
94
89
82
86
67
Cash Conversion Cycle
96
86
80
94
76
90
83
94
89
82
86
67
Working Capital Days
67
18
48
70
52
66
44
49
11
38
32
35
ROCE %
—
43%
41%
38%
45%
43%
27%
31%
36%
34%
28%
27%

Shareholding Pattern

As of Mar 2026
Promoters 73.57%
DIIs 14.64%
Public 6.30%
FIIs 3.86%
Others 1.63%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
74.24%
74.23%
74.15%
73.93%
73.90%
73.88%
73.87%
73.85%
73.85%
73.80%
73.77%
73.75%
73.74%
73.69%
73.69%
73.66%
73.66%
73.59%
73.58%
73.58%
73.57%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
5.51%
4.46%
4.35%
4.19%
5.18%
4.84%
4.67%
4.23%
3.86%
DIIs
5.92%
6.20%
5.72%
4.97%
4.69%
3.52%
7.35%
7.92%
8.64%
10.61%
10.41%
11.10%
12.33%
13.31%
13.96%
14.30%
13.68%
13.88%
14.13%
14.57%
14.64%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
5.96%
6.04%
6.05%
6.44%
7.34%
8.72%
9.73%
8.84%
8.54%
8.20%
7.46%
7.12%
6.66%
6.74%
6.26%
6.27%
5.90%
6.12%
6.05%
6.05%
6.30%
Others
13.88%
13.53%
14.08%
14.65%
14.07%
13.88%
9.05%
9.38%
8.98%
7.39%
8.35%
8.03%
1.76%
1.80%
1.74%
1.59%
1.58%
1.58%
1.57%
1.57%
1.63%
No. of Shareholders
1,14,727
1,25,920
1,46,893
1,77,839
2,22,196
2,76,779
3,05,881
2,88,961
2,97,569
2,84,646
2,66,571
2,57,396
2,43,374
2,54,732
2,36,000
2,31,067
2,19,573
2,23,318
2,21,811
2,31,406
2,44,820

Documents

Frequently Asked Questions about L&T Technology Services Ltd

What does L&T Technology Services Ltd do?
Incorporated in 2012, L&T Technology Services is an engineering and technology services company, a subsidiary of Larsen & Toubro, providing design, development, testing, and maintenance services across products and processes. [1]
Where is L&T Technology Services Ltd (LTTS) listed?
L&T Technology Services Ltd is listed on the Indian stock exchanges. It is listed on NSE: LTTS and BSE: 540115. You can view its live share price, financials, and ratios on Tapetide.
Which sector does L&T Technology Services Ltd belong to?
L&T Technology Services Ltd operates in the Information Technology sector within the IT - Services industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of L&T Technology Services Ltd?
L&T Technology Services Ltd has a market capitalisation of approximately ₹35428.82 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of L&T Technology Services Ltd?
The Price-to-Earnings (PE) ratio of L&T Technology Services Ltd is 27.53. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of L&T Technology Services Ltd?
Over the past 52 weeks, L&T Technology Services Ltd has traded between a low of ₹3,010 and a high of ₹4,726. This range helps investors understand the stock's price volatility and recent trading levels.
Does L&T Technology Services Ltd pay dividends?
Yes, L&T Technology Services Ltd has a dividend yield of 1.75%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of L&T Technology Services Ltd?
L&T Technology Services Ltd has a Return on Equity (ROE) of 24.43%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research L&T Technology Services Ltd on Tapetide?
On Tapetide, you can view L&T Technology Services Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Incorporated in 2012, L&T Technology Services is an engineering and technology services company, a subsidiary of Larsen & Toubro, providing design, development, testing, and maintenance services across products and processes. [1]

Website lnttechservices.com
CEO Mr. Amit Pal Singh Chadha
Employees 21,028
Listed 2016-09-23
Face Value ₹ 2
Issued Size 10,59,89,318

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