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

• Market Cap: ₹365.43B
• Dividend Yield: 1.19%
• Average Volume (3M): 9.16K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.20
• Revenue Growth: 14.88%
• EPS Growth: -2.60%
• Country: IN
• Employees: 21,271
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 31.01
• Shares Outstanding: 105,996,120
• 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: ₹4,774.00
• Price Target Upside: 8.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 123.94
• Revenue Forecast (FY): ₹117.56B

• Rating: 62 Neutral
• Price Target: ₹3,654.00 ▼(-17.08% Downside)
• Action: Reiterated Date: 10/14/25
• Date: Action: Reiterated 10/14/25

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

LTTS has delivered consistent revenue growth (~14.9% reported) across 2021–2025 driven by diversified ER&D services and multi-industry exposure. This sustained top-line expansion reflects recurring multi-year engagements and secular digital engineering demand that support stable revenue visibility over months to years.

Balance Sheet Health

The firm’s balance sheet shows a healthy equity ratio and improved debt-to-equity, giving LTTS financial flexibility to invest in capabilities or absorb downturns. A stronger capital structure supports long-term strategic investments and preserves optionality for M&A, hiring, or cyclicality over the medium term.

Cash Generation

Robust operating cash flow and generally stable free cash flow enable LTTS to fund R&D, working capital and client delivery without heavy external financing. Reliable cash conversion supports sustainable operations, reinvestment in domain capabilities, and resilience through project seasonality.

Negative Factors

Operating Profitability

A reported negative EBIT in 2025 indicates structural pressure or one-time charges impacting operating leverage. Persisting or recurring operating losses could erode margins, constrain reinvestment capacity and require remedial cost or pricing actions to restore sustainable profitability over coming quarters.

Cash Flow Volatility

While cash generation is solid overall, inconsistent free cash flow growth introduces uncertainty for long-term planning. Volatile FCF complicates funding of multi-year program ramp-ups, discretionary investments and reliable shareholder returns, increasing dependence on effective working capital and project execution control.

Rising Liabilities

An increase in total liabilities despite improved debt ratios suggests growing obligations (contractual, operational or contingent). If liabilities continue to rise, financial flexibility and credit metrics could weaken, raising refinancing or covenant risks and limiting ability to invest in strategic initiatives.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Negative
• Last Price: 4406.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 4406.6 is above the 20-day moving average (MA) of 3583.45, above the 50-day MA of 3963.75, and above the 200-day MA of 4203.74, indicating a bearish trend. The MACD of -166.36 indicates Negative momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 67.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
TATAELXSI	74 Outperform	₹277.28B	48.42	―	1.38%	-1.19%	-17.92%
MPHASIS	73 Outperform	₹430.62B	24.28	―	1.94%	8.73%	11.33%
TATATECH	70 Outperform	₹235.45B	44.70	―	1.26%	0.29%	7.17%
KPITTECH	66 Neutral	₹206.90B	29.18	―	0.69%	13.34%	5.98%
COFORGE	63 Neutral	₹390.65B	32.95	―	0.88%	41.97%	38.73%
LTTS	62 Neutral	₹365.43B	29.65	―	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 Posts Q3 FY26 Earnings Call Recording Online

L&T Technology Services Limited has notified the stock exchanges that its Q3 FY26 earnings conference call, held on January 15, 2026, at 7:00 p.m. IST, has been completed and that an audio recording of the call is now available on the company’s website. The disclosure, made in compliance with SEBI listing regulations, enhances transparency for investors and other stakeholders by providing public access to management’s commentary on quarterly performance and outlook.

L&T Technology Services Publishes Postal Ballot and E-Voting Notice

L&T Technology Services Limited has announced that it has completed the dispatch of its Postal Ballot Notice and e-voting details to shareholders, in line with regulatory requirements under the SEBI Listing Regulations. The company has published the requisite newspaper advertisements in Financial Express (English) and Loksatta (Marathi) on 20 December 2025 and made the information available on its website, reinforcing its compliance with disclosure norms and facilitating shareholder participation in corporate decision-making processes.

L&T Technology Services and PALFINGER Launch Global Development Center to Boost Product Innovation

L&T Technology Services Limited has announced the inauguration of a new Global Development Center (GDC) in collaboration with PALFINGER, a leader in crane and lifting solutions. This initiative, part of a multi-year engagement, aims to accelerate product development for PALFINGER by utilizing LTTS’ expertise in AI-driven engineering processes. The GDC will enhance PALFINGER’s localization and digital transformation efforts, supporting its growth strategy in India and the Asia-Pacific region. This collaboration represents a significant expansion in the partnership between the two companies, with LTTS providing comprehensive engineering and digital capabilities to strengthen PALFINGER’s product portfolio and sourcing programs.

L&T Technology Services Achieves ESG Rating of 71

L&T Technology Services Limited has received an ESG credit rating score of 71 from NSE Sustainability Ratings & Analytics Limited, a SEBI registered ESG Rating Provider. This score reflects the company’s performance on environmental, social, and governance parameters, highlighting its commitment to sustainability and responsible business practices.