L&T Technology Services Q3 Net Profit Declines 6% Year-on-Year

Mumbai: L&T Technology Services (LTTS) on Thursday reported a 6 per cent year-on-year decline in its consolidated net profit for the third quarter of FY26, impacted by cost factors despite steady revenue growth.

The mid-tier IT services firm posted a net profit of Rs 303 crore for the quarter ended December 31, compared to Rs 322 crore in the corresponding period of the previous financial year. On a sequential basis, profit fell 8 per cent from Rs 329 crore reported in the September quarter, according to the company’s stock exchange filing.

However, LTTS noted that excluding the impact of labour code-related costs, net profit would have increased 2 per cent year-on-year to Rs 329 crore.

Revenue from operations rose 10 per cent year-on-year to Rs 2,923 crore in Q3 FY26, up from Rs 2,653 crore in the year-ago quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 515 crore, marking a 4 per cent quarter-on-quarter increase. The EBIT margin improved to 14.6 per cent, supported by enhanced operational efficiency and a 120 basis point improvement over the previous quarter.

The company reported strong deal momentum during the quarter, securing several large contracts. These included a $70 million deal from a global original equipment manufacturer, along with engagements valued at $30 million and $20 million, and five additional contracts each exceeding $10 million. LTTS said its average total contract value has remained around $200 million for the fifth consecutive quarter.

Commenting on the results, CEO and Managing Director Amit Chadha said the company continues to witness double-digit growth in its Sustainability segment, while the Mobility business is showing signs of recovery.

“The sustainability segment continued to grow at a double-digit rate on a year-on-year basis, while Mobility is seeing a turnaround,” Chadha said, adding that the company’s five-year Lakshya plan, focused on high-growth and high-margin areas, is already contributing to improved profitability.

By the end of Q3 FY26, LTTS’ patent portfolio had expanded to 1,655 patents, of which 1,007 were co-authored with clients. The company’s total employee strength stood at 23,639.

In market action, shares of L&T Technology Services closed 1.8 per cent lower at Rs 4,240 on the National Stock Exchange.

With inputs from IANS