L&T Tech shares rally 6% after Q1 net profit rises 13%; Nomura, Nuvama, other brokerages revise target prices

Shares of L&T Technology Services rallied 6% on Wednesday after the IT firm reported a consolidated net profit of Rs 356.6 crore for the April-June quarter of FY26, marking a nearly 13% year-on-year (YoY) increase from Rs 315.7 crore reported in the corresponding quarter of the previous financial year.

The shares sharply surged to Rs 3,487.60 apiece on Wednesday after the company released its results in the post-market hours of Tuesday. Revenue from operations meanwhile rose around 11.5% YoY to Rs 2,940.1 crore during Q1 FY27 from Rs 2,637.5 crore in the same period last year. Its total income increased 10% YoY to Rs 2,969 crore, while total expenses rose around 9% YoY to Rs 2,493 crore during the quarter under review.

The company released its results in the post-market hours of Tuesday. Revenue from operations meanwhile rose around 11.5% YoY to Rs 2,940.1 crore during Q1 FY27 from Rs 2,637.5 crore in the same period last year. Its total income increased 10% YoY to Rs 2,969 crore, while total expenses rose around 9% YoY to Rs 2,493 crore during the quarter under review.


L&T Tech’s revenue in constant currency (CC) terms rose around 2% YoY to $310 million, while EBIT margin improved 200 bps to 15.7%. It received one order worth more than $30 million, one worth over $20 million and four worth above $10 million during Q1.

The company’s employee strength at the end of the quarter stood at 23,845. Its patents portfolio stood at 1,757, out of which 1,059 are co-authored with its clients and the rest are filed by LTTS. “With a strong foundation established under Lakshya 31 five-year plan and continued investments across our Six Technology Bets, we remain confident in our ability to deliver sustainable, profitable growth. Our aspiration of achieving 13-15% CAGR over the next five years reflects both the strength of our strategy and the confidence we have in our execution,” said Amit Chadha, CEO & Managing Director at L&T Technology Services.

Nomura on L&T Tech share price

Nomura highlighted that the EBIT margin of 15.7% was ahead of its estimate, along with $ revenue. “Revenue growth was led by the sustainability vertical which grew 4.3% QoQ and the mobility vertical which grew 2.3% QoQ. The tech vertical was relatively softer with a 3.1% QoQ decline,” it noted.

The international brokerage said that the management has reiterated its ambitions under Project Lakshya (by FY31) of delivering a revenue CAGR of 13-15%, with EBIT margins around the mid-16% level. The company believes its early investments into AI has given it at least 6-9 months lead team vs competition in Engineering Intelligence (EI) and expects to gain market share.

Nomura increased its target price for the shares of L&T Tech to Rs 3,180 apiece from Rs 3,150 apiece, while maintaining its ‘Neutral’ rating on the stock. The latest target price implies a downside potential of more than 3% from the stock’s previous closing price of Rs 3,293 apiece on NSE.

Nuvama on L&T Tech share price

Nuvama noted that L&T Tech reported decent Q1 FY27 results, with revenue growth beating expectation, while EBIT margin and profit met estimates. “Post-divestment of SWC business, LTTS has started FY27 with a decent performance and optimistic outlook. While we continue to like LTTS’s fundamentals, we believe the ERD industry shall take more time to recover from the current weak macro and headwinds in specific sectors (such as auto),” it added.

The brokerage maintained its ‘Hold’ rating on the shares of L&T Tech, but reduced its target price to Rs 3,500 apiece from Rs 4,000 apiece. This implies an upside potential of more than 6% from the stock’s previous closing price.

Motilal Oswal on L&T Tech share price

Motilal Oswal noted that the L&T Tech’s management expects growth to improve from hereon, although the domestic brokerage believes that recovery is still in its early stages. A couple of large telecom and MedTech deals slipped into early Q2, delaying revenue by a quarter, but management expects both to start ramping up immediately after the closure. Demand commentary has slightly improved vs. the last few quarters, with better traction in the US and continued strength in Sustainability. However, Europe auto remains weak and clients remain selective on spending. While Q2 is likely to be better, we believe a few quarters of consistent execution will be needed. We now build in organic revenue growth of 3.5% YoY cc and total revenue growth of 5% YoY in USD in FY27,” it added.

The brokerage maintained its ‘Neutral’ rating on the shares of L&T Tech, with a target price of Rs 3,400 apiece, implying a 3% upside potential.

L&T Tech share price

L&T Technology Services have gained around 5% in one week, but declined more than 3% in one month to close at Rs 3,293.10 apiece on NSE on Tuesday.

The shares of the company have fallen around 25% in 2026 so far. In the longer term, the stock delivered negative returns of more than 24% in one year, 20% in three years and 5% in five years. The company currently has a market capitalisation of nearly Rs 34,900 crore.

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