LTTS Q2 Results October 19, 2026: Profit Up 67% to ₹548 Crore, Helped by a One-Off Gain

L&T Technology Services put up a big headline number on Monday evening, but most of the jump came from selling a business, not from running one. The LTTS Q2 results for the quarter ended September 30, 2026 show net income of ₹548.2 crore, up 66.8% from a year ago and 53.7% from the June quarter. Inside that figure sits a one-time gain of ₹165 crore from divesting its SWC business, according to the company’s Q2 FY27 press release.

Take the one-off out and the picture is calmer, though still decent. The results presentation filed with BSE puts net income from continuing operations at ₹379.6 crore, up 19.7% year on year and 7.9% quarter on quarter. One caveat: the company has restated the year-ago quarter to show continuing operations only, so the comparisons leave out the business that was sold.

LTTS Q2 results: the key numbers

• Revenue: ₹3,040.4 crore, up 12.1% year on year and 3.4% from the previous quarter.
• Dollar revenue: $317.1 million, up 2.3% sequentially and 3.3% year on year. In constant currency, growth was 2.7% sequentially and 4.8% year on year.
• EBIT: ₹496.6 crore. The EBIT margin was 16.3%, up 60 basis points on the quarter and 220 basis points on the year.
• Net income: ₹548.2 crore reported, including the ₹165 crore SWC gain. Continuing operations alone contributed ₹379.6 crore.
• Dividend: an interim dividend of ₹20 per share, with October 27, 2026 as the record date.

Against the street, the quarter looked better on every line. CNBC-TV18’s results blog had polled ₹3,022.5 crore of revenue, ₹483 crore of EBIT, a 16% margin and ₹360 crore of net profit. The profit beat is the one to read carefully. Continuing operations came in about ₹20 crore above that poll, so most of the gap to the ₹548 crore headline is the divestment gain.

Where the growth came from

Sustainability did the heavy lifting. That segment grew 13.4% year on year and now makes up 38% of revenue, up from 34.7% a year ago. Mobility grew 4.7%. Tech went the other way, down 8.5% year on year and 0.9% on the quarter, and its share of revenue slipped to 29.7%. All three segment growth figures are from the BSE presentation.

By geography, North America grew 4.4% year on year and makes up 60.7% of revenue. Europe shrank 3.9%, and India was roughly flat at 0.6% growth.

Deal flow was the other bright spot. LTTS said it signed large deals with a total contract value of more than $200 million in the quarter, and AI-led deals made up over half of that. The biggest single deal was worth $75 million. Headcount stood at 24,035 at the end of September.

What management is promising

CEO Amit Chadha said in the release that the company expects revenue momentum to strengthen in the second half while margins stay healthy. Over five years, LTTS is aiming for 13-15% annual revenue growth with EBIT margins of 16-17%. At 16.3%, the margin is already inside that band, and the company says it reached its mid-16% margin goal ahead of schedule. Growth is the harder part. Year-on-year constant-currency growth of 4.8% this quarter is well short of 13%.

For us, that gap is the real test for the stock. The ₹165 crore gain won’t repeat, so the next few quarters rest on the deal wins turning into revenue and on Tech stabilising.

For the rest of Monday’s earnings, see our Q2 results line-up for October 19. Our earlier take on Nifty IT stocks after the Tech Mahindra and Wipro results covers the wider sector, and our guide on how to analyse quarterly results explains how to split one-off items from operating profit.

Disclaimer: This article is for information only and is not investment advice or a recommendation to buy or sell any security. Figures are from L&T Technology Services’ Q2 FY27 press release, its results presentation filed with BSE, and CNBC-TV18’s results blog, all linked above. Please consult a SEBI-registered investment adviser before making any investment decision.