L&T Technology Services Ltd. (LTTS) AI Stock Analysis

• Market Cap: ₹488.54B
• Dividend Yield: 1.19%
• Average Volume (3M): 9.16K
• Price to Earnings (P/E): 38.2
• Beta (1Y): 1.22
• Revenue Growth: 14.88%
• EPS Growth: -2.60%
• Country: IN
• Employees: 21,271
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 30.97
• Shares Outstanding: 105,989,320
• 10 Day Avg. Volume: 2,951
• 30 Day Avg. Volume: 9,157
• PEG Ratio: -12.92
• Price to Book (P/B): 7.94
• Price to Sales (P/S): 4.53
• P/FCF Ratio: 35.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹4,258.33
• Price Target Upside: -7.61% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹4,446.00 ▼(-3.54% Downside)

The overall stock score of 62 reflects strong financial health and efficient cash management as the most significant factors. However, technical indicators suggest potential bearish trends, and the valuation appears high, which could limit upside potential. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for LTTS's services and its ability to capture market share across diverse industries.

Cash Flow Management

Strong cash flow management ensures LTTS can reinvest in growth opportunities and maintain financial stability, supporting long-term operations.

Balance Sheet Health

A strong balance sheet with manageable debt levels provides LTTS with financial flexibility to navigate economic cycles and invest in strategic initiatives.

Negative Factors

Negative EBIT

Negative EBIT indicates potential operational inefficiencies, which could impact profitability if not addressed, requiring strategic cost management.

Increased Liabilities

Rising liabilities may strain financial resources and limit LTTS's ability to invest in growth, necessitating careful financial oversight.

Inconsistent Cash Flow Growth

Inconsistent cash flow growth can affect LTTS's ability to fund operations and strategic initiatives, highlighting the need for stable cash management.

L&T Technology Services Ltd. Business Overview & Revenue Model

Company Description

L&T Technology Services Limited provides engineering, research, and development (ER&D) services in North America, Europe, India, and internationally. Its Transportation segment offers engineering services and solutions to transportation industry that includes original equipment manufacturers (OEM) and Tier 1 suppliers in automotive, trucks and off-highway vehicles, aerospace, rail, and polymer industries. The company's Industrial Products segment helps OEM customers in building automation, home and office products, energy, process control, and machinery sectors. This segment offers product development counsel, software expertise, electronics, connectivity, mechanical engineering, industrial networking protocols, user interface/user experience, test frameworks, and enterprise control solutions. Its Telecom & Hi-Tech segment offers embedded software design and development, hardware platform design and development, product maintenance, enhancement and sustenance, testing and validation, system integration for communication and related solutions, and systems and field implementation services to OEM/ODMs, chipset vendors, telecom carriers, and ISVs. The company's Plant Engineering segment provides end to end engineering services for chemical, consumer packaged goods, and energy and utility sector clients. Its Medical Devices segment delivers solutions in diagnostic, life sciences, surgical, cardiovascular, home healthcare, general medical, and other devices to medical device OEMs. The company was formerly known as L&T Technology and Engineering Services Company Limited and changed its name to L&T Technology Services Limited in July 2012. The company was incorporated in 2012 and is based in Vadodara, India. L&T Technology Services Limited is a subsidiary of Larsen & Toubro Limited.

How the Company Makes Money

LTTS generates revenue primarily through its engineering services and solutions, which include product design, development, and consulting in various technology domains. The company operates on a project-based model, where it charges clients for specific projects or retainer agreements. Key revenue streams include long-term contracts with major corporations in sectors like automotive, aerospace, and healthcare, which provide a steady income. Additionally, LTTS benefits from strategic partnerships with technology leaders and industry-specific collaborations that enhance its service offerings and expand its market reach. The company also invests in research and development to innovate new solutions, which helps in attracting a diverse clientele and maintaining a competitive edge in the engineering services market.

L&T Technology Services Ltd. Financial Statement Overview

Summary

L&T Technology Services Ltd. demonstrates strong financial health with consistent revenue growth and efficient cash management. The balance sheet reflects a solid equity position and manageable debt levels. However, the negative EBIT in 2025 signals a need for attention to operational efficiency. Overall, the company is on a stable trajectory but should focus on improving operational margins to enhance profitability.

Income Statement

The company has shown consistent revenue growth over the years, with a noticeable increase from 2021 to 2025. However, the negative EBIT in 2025 indicates potential operational inefficiencies or restructuring costs affecting profitability. Despite this, the net profit margin remains relatively stable, which suggests effective cost management below the operating level.

Balance Sheet

The balance sheet is strong with a healthy equity ratio and a manageable level of debt. The debt-to-equity ratio has improved over the years, indicating prudent financial management. The return on equity is solid, showcasing the company’s ability to generate returns for shareholders. However, the total liabilities have increased, which could pose risks if not controlled.

Cash Flow

Cash flow generation is robust with a stable free cash flow over the years. The operating cash flow to net income ratio is strong, highlighting efficient cash management. However, the free cash flow growth rate has been inconsistent, indicating potential volatility in cash generation capabilities. The company should focus on maintaining consistent cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	110.74B	106.70B	96.47B	88.16B	65.70B	54.50B
Gross Profit	51.26B	49.82B	23.32B	41.19B	17.18B	11.89B
EBITDA	21.14B	21.02B	21.26B	19.64B	15.67B	11.61B
Net Income	12.69B	12.67B	13.04B	12.12B	9.57B	6.63B
Balance Sheet
Total Assets	94.03B	96.44B	84.89B	81.98B	60.91B	50.73B
Cash, Cash Equivalents and Short-Term Investments	13.14B	25.25B	26.84B	27.98B	20.66B	17.47B
Total Debt	5.76B	5.78B	6.59B	4.54B	4.77B	4.80B
Total Liabilities	34.24B	35.46B	31.41B	37.45B	19.15B	15.90B
Stockholders Equity	60.98B	60.80B	53.27B	44.35B	41.63B	34.73B
Cash Flow
Free Cash Flow	0.00	13.70B	12.40B	11.30B	8.44B	12.50B
Operating Cash Flow	0.00	14.81B	14.93B	13.05B	10.06B	13.27B
Investing Cash Flow	0.00	-5.09B	-2.33B	-5.72B	-4.48B	-10.05B
Financing Cash Flow	0.00	-7.18B	-6.58B	-4.43B	-4.98B	-3.63B

L&T Technology Services Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4609.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LTTS, the sentiment is Positive. The current price of 4609.3 is above the 20-day moving average (MA) of 4560.16, above the 50-day MA of 4324.14, and above the 200-day MA of 4304.64, indicating a bullish trend. The MACD of 83.16 indicates Positive momentum. The RSI at 57.28 is Neutral, neither overbought nor oversold. The STOCH value of 73.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LTTS.

L&T Technology Services Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COFORGE	73 Outperform	₹582.12B	49.66	―	0.88%	41.97%	38.73%
MPHASIS	73 Outperform	₹551.14B	30.78	―	1.94%	8.73%	11.33%
TATATECH	70 Outperform	₹266.72B	38.46	―	1.26%	0.29%	7.17%
KPITTECH	69 Neutral	₹333.67B	42.81	―	0.69%	13.34%	5.98%
TATAELXSI	66 Neutral	₹335.12B	49.96	―	1.38%	-1.19%	-17.92%
LTTS	62 Neutral	₹488.54B	38.20	―	1.19%	14.88%	-2.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

L&T Technology Services Ltd. Corporate Events

L&T Technology Services Unveils AI-Powered Digital Twin for Respiratory Diagnostics

L&T Technology Services has announced the development of an AI-powered digital twin platform for respiratory diagnostics, in collaboration with NVIDIA. This platform, to be unveiled at the RSNA 2025, integrates with CT imaging and uses deep learning models to create a 3D digital twin of lung anatomy, enhancing diagnostic precision and aiding in surgical planning for conditions like lung cancer and COPD. The collaboration aims to transform healthcare by providing clinicians with real-time visualization and intelligent guidance, ultimately improving patient outcomes.

L&T Technology Services Achieves Consecutive Supplier Excellence Recognition from Caterpillar

L&T Technology Services (LTTS) has been recertified at Caterpillar’s Supplier Excellence Recognition event for the second consecutive year, highlighting its consistent delivery, quality standards, and strategic relationship in the Mobility segment. This achievement underscores LTTS’s reliability and operational excellence in supporting Caterpillar’s global supply chain, furthering sustainability goals, and driving engineering innovation. The recognition reflects LTTS’s ability to meet strict criteria in quality assurance, timely delivery, and innovation, reinforcing its position as a strategic supplier to Caterpillar.

L&T Technology Services and Siemens Collaborate for AI-Driven Transformation

L&T Technology Services has announced an expanded partnership with Siemens Limited to drive AI-led transformation in process engineering and smart manufacturing. This collaboration aims to leverage Siemens’ digital technology portfolio to deliver simulation-driven automation and IIoT-enabled solutions, enhancing LTTS’ Sustainability segment. The partnership is expected to accelerate digital adoption, improve precision in system design, and foster smarter decision-making, positioning LTTS at the forefront of creating intelligent and environmentally responsible industrial ecosystems.

L&T Technology Services Allots Shares Under Employee Stock Option Scheme

L&T Technology Services Limited announced the allotment of 6,775 equity shares to employees who exercised their stock options under the company’s Employee Stock Option Scheme, 2016. This move is part of the company’s ongoing efforts to incentivize and retain talent, ensuring that the newly allotted shares will hold the same rights as existing shares, thereby maintaining equity consistency and potentially enhancing employee engagement.