L&T Technology Services (LTTS) reported that its net profit rose 24% year-on-year to Rs 347 crore in the March quarter, while revenue increased 8% YoY to Rs 2,858 crore, supported by steady deal wins and growth in key segments. On a sequential basis, profit grew 9%, while revenue was up 2.5%. The board also recommended a final dividend of Rs 40 per share.

The sharp profit rise was driven by operating leverage and margin expansion. EBIT for the quarter rose 24% YoY to Rs 435 crore, with EBIT margin improving to 15.2%. EBITDA also showed healthy growth, rising 20% YoY to Rs 521 crore.

Margins expanded as the company exited low-margin segments and recalibrated its portfolio toward higher-value engineering and AI-led services.

Revenue growth was underpinned by continued large deal wins and stable demand across core verticals. The company reported its sixth consecutive quarter of around $200 million in large deal bookings, taking FY26 total large deal wins to over $850 million.

In dollar terms, quarterly revenue stood at $306 million, largely flat YoY, reflecting currency headwinds and portfolio restructuring.

Growth was led by the sustainability segment, which saw strong traction, while mobility stabilized after earlier weakness and is expected to improve going forward. The technology segment saw some moderation, reflecting cautious client spending in parts of the tech ecosystem.

Geographically, North America continued to dominate, contributing over 60% of revenue, while Europe and India remained relatively stable.During the quarter, LTTS divested its SWC business as part of a broader strategy to focus on core engineering and digital capabilities.

The company said this transition aims to improve profitability and position itself around “Engineering Intelligence,” where AI, digital, and engineering converge to deliver higher-value solutions.

This strategic pivot also aided margin expansion during the quarter.

For FY26, LTTS reported revenue of Rs 10,996 crore, up 14% YoY, while net profit rose 7% to Rs 1,282 crore. The company maintained an EBIT margin of 14.5% for the year, supported by continued investments in technology and capability building.

Management said demand remains stable across key segments, with a strong pipeline in sustainability and improving traction in mobility. The company expects to benefit from increasing adoption of AI-led engineering solutions and digital transformation initiatives across industries.

Under its long-term “Lakshya 31” plan, LTTS is targeting 13-15% CAGR over the next five years, with a sharper focus on high-growth, high-margin opportunities.