(Reuters) -India’s L&T Technology Services posted second-quarter revenue that was marginally above analysts’ estimates on Friday, on the back of strength from the tech segment and North America business.
The firm maintained its double-digit revenue growth forecast for the current fiscal year.
The Larsen & Toubro group entity’s consolidated revenue grew 15.8% year-on-year to 29.8 billion rupees ($338.5 million) in the quarter ended September. Analysts had expected 29.46 billion rupees, as per data compiled by LSEG.
Among the geographies, North America, its largest, grew the most at 14.4%.
“With an increased order book and a sharp focus on resilient and profitable growth, we expect both revenue and operating margin to see an improvement in second-half compared to first-half of FY26,” said CEO Amit Chadha said in a statement.
The firm’s net profit rose 2.8% to 3.29 billion rupees, above analysts’ estimate of 3.19 billion rupees.
Tech segment, its largest, grew 28.6% compared to the year ago period. This segment consists of med-tech, semiconductors and consumer electronics clients.
KEY CONTEXT
The revenue beat comes on the back of large deal wins of $200 million or above in each of the previous three quarters. L&T Technology signed contracts with the automotive arm of steel firm Thyssenkkrup and a $60 million deal with an unnamed U.S. telecom major earlier this year. Peer Tata Elxsi missed quarterly earnings estimates last week as its key transportation business declined amid geopolitical tensions.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Revenue Profit Mean No. of Stock to Div
growth (%) growth (%) rating* analyst price yield
s target** (%)
L&T Technology 29.30 18.70 12.43 13.96 Hold 28 0.93 1.31
Services
KPIT Technologies 35.00 20.35 10.62 11.18 Buy 20 0.87 0.73
Tata Technologies 36.53 27.26 7.36 11.47 Sell 13 1.16 1.21
Tata Elxsi 45.44 34.25 6.32 3.70 Sell 15 1.19 1.39
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPT STOCK PERFORMANCE
— All data from LSEG
($1 = 88.0350 Indian rupees)
(Reporting by Sai Ishwarbharath B; Editing by Mrigank Dhaniwala)
