L&T Technology Q1 FY27 Results (NSE: LTTS)
Signal: Margin expansion
The read
Revenue growth accelerated to 11.5% YoY (vs 7.2% in Q1FY26), with OPM expanding 194bps YoY to 18.7% – second consecutive quarter of margin expansion after four quarters of contraction, driven by operating leverage as employee cost grew only 9.4% vs revenue +11.5%. Sustainability segment continued strong momentum, while Tech segment revenue declined marginally but improved profitability. Other income fell sharply, but the core operating strength more than offset that.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,940.1 Cr | 11.47% | 2.88% |
| Net profit | ₹357.1 Cr | 12.97% | |
| EPS | ₹33.62 | 12.78% | |
| EBIT margin | 18.7% |
P&L walk
Operating leverage drove margin expansion: revenue +11.5% YoY, employee cost +9.4%, other expenses +7.6%, while other income fell sharply. Sustainability segment outperformed.
Segments
Sustainability segment was the primary growth engine (+23.7% YoY revenue, +31.6% segment profit), while Tech segment revenue declined 0.8% YoY, though its segment profit rose 29%.
Key positives
- Revenue growth accelerated to 11.5% YoY from 7.2% in Q1FY26, driven by Sustainability (+23.7% YoY).
- OPM expanded 194bps YoY to 18.7% – second straight quarter of expansion after a stretch of contraction.
- Operating leverage visible: EBITDA grew 24.4% YoY vs revenue 11.5%; employee cost grew only 9.4% YoY.
- Sustainability segment revenue ₹10,904M (+23.7% YoY) and segment profit ₹3,178M (+31.6% YoY) – strongest performer.
- No exceptional items this quarter versus ₹370M in Q4FY26.
- Discontinued operations (Smart World) added ₹48M to net profit.
Key concerns
- Tech segment revenue declined 0.8% YoY to ₹9,009M, despite improved profitability.
- Other income fell 56.6% YoY to ₹291M, lowering total income growth.
- Minor EPS dilution from ESOP allotments (70,450 shares).
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