L&T Technology Services cuts revenue forecast, sees mid single-digit growth in fiscal 2026

L&T Technology Services

15/01/2026 11:43

Jan 15 (Reuters) - Indian engineering research and development (ER&D) firm L&T Technology Services LTEH.NS said on Thursday that it expects revenue growth for the 2026 fiscal year ending March 31 to be in the mid single-digit range, down from its earlier forecast of double-digit growth.

CEO Amit Chadha said in a statement that after re-evaluating market trends and client spending priorities the company is "pivoting to deliver full-stack Engineering Intelligence (EI) solutions and (has) reassessed (its) regional focus and offerings."

The Larsen & Toubro LART.NS group company posted lower-than-expected third-quarter revenue on Thursday due to subdued business in its mobility segment, with revenue rising 10.2% year-on-year to 29.24 billion rupees ($324.01 million).

Analysts, on average, estimated revenue to come in at 30.41 billion rupees, as per data compiled by LSEG.

Consolidated net profit for the quarter fell 6.14% on-year to 3.03 billion rupees, missing analysts' average estimate of 3.38 billion rupees, as per data compiled by LSEG.

The company took a one-time charge of 354 million rupees due to the impact of India's new labour codes.

Among its geographies, North America, from where the company derives over half its revenue, grew 15.4% on-year.

Revenue from the mobility segment, which contributes about 30% of revenue and provides engineering and digital services to auto companies, fell 2.8% due to the company's exposure to the U.S. market. The segment is starting to see a turnaround, Chadha said.

Revenue from the company's tech segment, its largest, grew 5.5% from the year-ago period. This segment comprises med-tech, semiconductor, and consumer electronics clients.

Analysts at J.P. Morgan said that while demand for auto ER&D services has started to improve following trade deals and tariff uncertainty abating, demand recovery in the U.S market is lagging markets such as Europe.

ER&D firms rely heavily on outsourced work from U.S. and European clients. Demand for their services slowed over several quarters due to uncertainties surrounding tariff policy and trade deals. Some demand stabilisation was expected in the third quarter as the business environment became clear.

Peer Tata Elxsi TTEX.NS beat estimates for revenue growth on the back of performance in its software development and services segment.

PEER COMPARISON

RIC
PE
EV/EBITDA
Price/Sales
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
L&T Technology Services Ltd
LTEH.NS
29.36
18.76
NULL
11.50
16.10
Hold
28
0.95
1.30
Tata Technologies Ltd
TATE.NS
33.61
24.80
NULL
12.21
14.47
Sell
14
1.08
1.28
Tata Elxsi Ltd
TTEX.NS
45.25
34.10
NULL
9.78
15.41
Sell
15
1.23
1.32
KPIT Technologies Ltd
KPIE.NS
36.09
20.64
NULL
13.13
14.28
Buy
20
0.89
0.72

* 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

STOCK PERFORMANCE

-- All data from LSEG

($1 = 90.2440 Indian rupees)

LTEH https://tmsnrt.rs/49p38Q5

 (Reporting by Haripriya Suresh; Editing by Harikrishnan Nair and Shailesh Kuber)

 ((haripriya.suresh@thomsonreuters.com))