The company reported constant currency revenue growth of 1.5% sequentially, ahead of Street estimates of 1.1%. Its EBIT margin expanded 50 basis points sequentially to 15.7%, marginally above the estimated 15.5%.
Alongside its earnings, LTTS announced a strategic partnership with Anthropic to develop AI-powered engineering intelligence solutions for the products and manufacturing sectors.
Commenting on the outlook, CEO and Managing Director Amit Chadha said the company’s aspiration of delivering a 13-15% CAGR over the next five years, while maintaining EBIT margins of 16-17%, reflects the strength of its strategy and confidence in execution.
During the quarter, LTTS secured one deal worth over $30 million, one deal above $20 million, and four deals valued at more than $10 million.
Among business verticals, Sustainability posted the strongest growth, rising 4.3% quarter-on-quarter in constant currency, followed by Mobility, which grew 2.3%. The Tech segment, however, declined 3.1%.
Geographically, North America grew 1.4%, India rose 0.9%, and the Rest of the World expanded 6%, while Europe declined 0.8% on a sequential constant currency basis.
Management indicated that growth is expected to improve in the coming quarters, although it acknowledged that a couple of large telecom and MedTech deals slipped into early Q2, delaying revenue recognition by a quarter.
The company also reiterated its Lakshya 31 targets of delivering 13-15% CAGR with EBIT margins of 16-17%, while reaffirming its goal of achieving a mid-16% EBIT margin by Q4 FY27.
Motilal stays ‘Neutral’ on stock
Following the results, Motilal Oswal maintained its ‘Neutral’ rating on the stock with a target price of ₹3,400, implying an upside of around 3% from Tuesday’s closing level.
The brokerage said that LTTS’ Q1 FY27 revenue, EBIT and adjusted PAT increased 11.5%, 28.1% and 17.4% year-on-year, respectively, in rupee terms. For Q2 FY27, it expects revenue, EBIT and adjusted PAT to grow 0.5%, 17.3% and 11.7%, respectively.
While management commentary has become more constructive, Motilal Oswal said it would like to see a few more quarters of consistent deal conversion and execution before turning more positive on the company’s growth trajectory.
LTTS shares ended 0.26% lower at ₹3,289 on Tuesday and have declined 25% so far in 2026.
