(Reuters) -India’s L&T Technology Services expects to log double-digit revenue growth in fiscal year 2026 and maintained its medium-term outlook of $2 billion revenue, boosted by an increased order book, CEO Amit Chadha said on Wednesday.
However, the engineering and technology firm posted first-quarter revenue below analysts’ estimates, as weakness in the global auto sector hit the company’s mobility segment.
Its consolidated revenue rose 16.4% to 28.66 billion rupees ($333.54 million) in the quarter ended June 30.
Analysts had expected a revenue of 29.07 billion rupees, as per data compiled by LSEG.
Revenue from its mobility segment, which makes up about 30% of total revenue and offers engineering and digital services to auto firms, fell 2.1% during the quarter.
The firm’s net profit grew 0.7% on-year to 3.16 billion rupees, but still above analysts’ expectation of 3.11 billion rupees.
KEY CONTEXT
India’s engineering, research & development firms, which rely heavily on outsourced work from U.S. and European clients, is seeing a broad slowdown as clients rethink spending priorities.
The global auto sector – a key clientele – has been beset by concerns over U.S. tariffs, weak growth in China, sluggish EV adoption, and China’s export curbs on rare earths.
Peer Tata Elxsi missed quarterly earnings estimates last week, hurt by slowing research and development spend by customers across geographies.
PEER COMPARISON
Valuation (next Estimates (next 12 Analysts’ sentiment
12 months) months)
RIC PE EV/EBIT Revenue Profit Mean # of Stock to price Div yield
DA growth(%) growth(%) rating* analysts target** (%)
Tata Elxsi 46.38 34.12 6.96 4.42 SELL 12 1.29 1.21
L&T Technology Services 31.10 19.65 13.52 12.67 HOLD 28 0.96 1.26
KPIT Technologies 37.94 22.64 13.37 6.95 BUY 17 0.91 0.67
Tata Technologies 38.21 27.99 3.44 7.35 SELL 10 1.12 1.19
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
($1 = 85.9260 Indian rupees)
(Reporting by Aleef Jahan; Editing by Harikrishnan Nair and Vijay Kishore)
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