L&T Tech ends FY25 strong, but profit takes a hit

L&T Technology Services (LTTS) closed out FY25 with a strong top line, but the bottom line didn't follow suit.

The company reported a 17.5 per cent jump in revenue in Q4, driven by large deal wins and a solid tech pipeline. But net profit declined 9 per cent year-on-year as margin pressure and elevated costs weighed on performance. And the stock fell over 6 per cent today.

In a quarter where execution was strong, the Street was still looking for better profitability.

LTTS Q4 numbers

While revenue crossed the Rs 2,900 crore mark for the first time, EBIT margin compressed—a red flag for investors keeping an eye on operating efficiency.

What's driving growth

• Large deal momentum: LTTS closed multiple high-value contracts in Q4, including an $80 million+ and a $50 million+ deal. This helped boost total contract value (TCV) to its highest ever in a single quarter.
  
• Tech-led segments: The digital and engineering tech vertical grew 25 per cent YoY, now contributing over 42 per cent to the revenue mix.
  
• Patent strength: The company crossed 1,500 total patent filings, with 190 in the AI and GenAI space—a sign it's investing for the long haul.

What's not

• Profitability dipped , even as revenue surged
  
• Mobility segment growth slowed to 3.2 per cent YoY
  
• Despite the strong pipeline, cost pressures remain sticky , limiting margin expansion

LTTS continues to invest in capacity and acquisitions—like the recent Intelliswift buy—but integration and scale benefits are likely to reflect with a lag.

Value Research Online Ratings

Value Research Stock Rating gives L&T Technology Services an overall rating of 3 stars. The company's specific scores are as follows:

• Quality Score: 10/10
  
• Growth Score: 6/10
  
• Valuation Score: 4/10
  
• Momentum Score: 2/10

- Use our Stock Screener to see how LTTS stacks up against peers like TCS , Infosys and Wipro .

- Check its Stock Card for margins, return metrics and historical valuations

Final take

LTTS is closing deals, building IP and diversifying its portfolio—but margins remain under pressure.

Its long-term story remains intact: high-value engineering services, global deal wins and a push into AI/GenAI-led platforms. But for now, investors will want to see if growth translates into better operating leverage in FY26.

With a premium valuation of 36 compared to peers, that's the next hurdle to clear.

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