India's L&T Technology misses quarterly revenue estimates, targets double-digit FY26 growth

L&T Technology Services

16/07/2025 13:33

July 16 (Reuters) - India's L&T Technology Services LTEH.NS expects to log double-digit revenue growth in fiscal year 2026 and maintained its medium-term outlook of $2 billion revenue, boosted by an increased order book, CEO Amit Chadha said on Wednesday.

However, the engineering and technology firm posted first-quarter revenue below analysts' estimates, as weakness in the global auto sector hit the company's mobility segment.

Its consolidated revenue rose 16.4% to 28.66 billion rupees ($333.54 million) in the quarter ended June 30.

Analysts had expected a revenue of 29.07 billion rupees, as per data compiled by LSEG.

Revenue from its mobility segment, which makes up about 30% of total revenue and offers engineering and digital services to auto firms, fell 2.1% during the quarter.

The firm's net profit grew 0.7% on-year to 3.16 billion rupees, but still above analysts' expectation of 3.11 billion rupees.

KEY CONTEXT

India's engineering, research & development firms, which rely heavily on outsourced work from U.S. and European clients, is seeing a broad slowdown as clients rethink spending priorities.

The global auto sector - a key clientele - has been beset by concerns over U.S. tariffs, weak growth in China, sluggish EV adoption, and China's export curbs on rare earths.

Peer Tata Elxsi TTEX.NS missed quarterly earnings estimates last week, hurt by slowing research and development spend by customers across geographies.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth(%)
Profit growth(%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Tata Elxsi
TTEX.NS
46.38
34.12
6.96
4.42
SELL
12
1.29
1.21
L&T Technology Services
LTEH.NS
31.10
19.65
13.52
12.67
HOLD
28
0.96
1.26
KPIT Technologies
KPIE.NS
37.94
22.64
13.37
6.95
BUY
17
0.91
0.67
Tata Technologies
TATE.NS
38.21
27.99
3.44
7.35
SELL
10
1.12
1.19

 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

   APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

($1 = 85.9260 Indian rupees)

 STOCK PERFORMANCE https://tmsnrt.rs/3S3WDbH

 (Reporting by Aleef Jahan; Editing by Harikrishnan Nair and Vijay Kishore)

 ((aleefjahan.cs@thomsonreuters.com))