Debasis Mohapatra
Bengaluru, 26 April 2026
L&T Technology Services (LTTS) has completed the restructuring and portfolio rationalisation in the fourth quarter of FY26 and its future growth recovery hinges on strong execution, brokerage firm, Prabhudas Lilladher Capital (PL Capital) said in a report.
“LTTS reported a subdued Q4FY26, impacted by portfolio restructuring, including divestment of its SWC business (primarily India-focused smart cities) and the exit of $19 million annualized low-margin, non-strategic engagements across geos. These actions, part of its 5-year Lakshya programme (targeting 13–15% USD revenue CAGR and 16–17% EBIT margins), are now largely complete,” the report said.
With the completion of portfolio rationalisation, LTTS expects a growth recovery in first quarter of FY27 as restructuring-related growth abates. Improving outlook in verticals like mobility, strong deal wins and sound growth in sustainability verticals are expected to support LTTS’ recovery.
The engineering services company’s deal pipeline remained robust. Large deal wins in FY26 stood at $855 million, which was 40% higher than the same period of previous fiscal year.
“However, we expect the near-term recovery to be gradual as the company works to offset the revenue impact of exited businesses,” the brokerage firm noted.
Meanwhile, the restructuring undertaken by the L&T Group company will support its margin profile as the ER&D firm exits low margin businesses.
“Restructuring benefits are already visible, and shift toward higher-margin segments should drive further expansion. Management now targets achieving mid-16% EBIT margins earlier than its prior Q4FY27 timeline,” the report said.
Net employee count of LTTS increased by 522 people during the fourth quarter. The company plans to add around 500 employees over Q2–Q3 FY27 as project ramp-up happens coupled with demand for new AI skill sets like AI-led engineering.
