L&T Tech Gains On Solid Q1: AI Push, Large Deals And Firm Margins Show Long-Term Play, Says SEBI RA

L&T Technology Services (LTTS) shares rose 2% on Thursday as the company delivered a steady performance in the first quarter, navigating seasonal softness with margin resilience and continued focus on intellectual property and AI-driven growth.

The company reported consolidated revenue of ₹2,866 crore, up 16.4% year-on-year but down 3.9% quarter-on-quarter, while net profit remained steady at ₹316 crore. EBIT margin held firm at 13.3%.

SEBI-registered analyst Rajneesh Sharma noted LTTS secured its third consecutive quarter of over $200 million in total contract value (TCV), including one $50 million deal, three in the $20–30 million range, and more than six deals above $10 million. 

He said that the company is prioritizing long-term moats over reacting to short-term macro concerns.

Key growth signals, according to Sharma, include 206 AI/GenAI patents filed, the expansion of LTTS’s PLxAI framework into new domains, and partnerships with NVIDIA in rail, medtech, and smart infrastructure. 

He highlighted strong year-on-year growth in the sustainability and tech verticals, with momentum in software-defined vehicles and aerospace under the mobility segment, despite macroeconomic softness.

LTTS also ramped up its global footprint with a new Texas design center focused on AI and cybersecurity, while the integration of Intelliswift has expanded its reach in fintech, retail, and healthcare.

On the technical front, Sharma said the stock has corrected from ₹5,870 to ₹4,346 and is now testing a multi-year ascending trendline. 

The ₹4,100–₹4,200 range is identified as a critical support zone, with previous trendline bounces leading to 15–25% upside moves. Resistance lies between ₹4,790 and ₹5,250.

Looking ahead, Sharma said the company has reiterated double-digit revenue growth guidance for FY26 (in constant currency) and is targeting $2 billion revenue with 17–18% EBIT margin in the medium term. 

He flagged key investor watchpoints, including the monetization of LTTS’s growing patent portfolio, a potential recovery in mobility, and margin expansion as ramp costs normalize.

On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.

LTTS’ stock has declined 5.7% so far in 2025.

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