L&T Technology Services reported higher second-quarter revenue on Monday and said it expects a strong second half of fiscal year 2027, supported by improving order backlogs and several large deals. Consolidated revenue for the quarter ended September 30 rose to 30.4 billion rupees ($320.25 million) from 27.13 billion rupees a year earlier, based on an exchange rate of $1 to 94.9250 Indian rupees. Net profit from continuing operations increased 19.6 percent to 3.80 billion rupees. Including discontinued operations, net profit rose 66.8 percent, a wider figure that covers the operations the company has exited.
The improvement at L&T Technology came from work on large deals won in recent quarters, the company said, along with higher client spending in its sustainability business. The engineering services firm, which trades under the ticker LTEH.NS, said follow-on work from recent wins supported the quarter's numbers. The results were reported on October 19, 2026.
The company said it won several of the contracts behind the quarter's numbers in earlier quarters, and executing that work is what lifted revenue. Management expects the remaining backlog from those wins to support revenue in the third and fourth quarters of the fiscal year.
L&T Technology sustainability revenue rises 22.9 percent
The sustainability segment covers industrial products and plant engineering, and it is the biggest revenue generator at L&T Technology. Plant engineering and industrial products make up the segment. Its revenue grew 22.9 percent from the same quarter a year earlier, the fastest growth rate among the company's reported segments. The company said clients in this area kept spending through the quarter, and management pointed to that spending as one of the reasons it expects the current performance to carry into the second half of the fiscal year.
L&T Technology mobility revenue grows 13.5 percent
Revenue at the mobility unit of L&T Technology, which accounts for about a third of overall sales, grew 13.5 percent year on year. The mobility unit's share of revenue is roughly one third. Revenue from the technology segment was flat over the same period, with no growth over the same quarter last year. North America, which provides 60.7 percent of total revenue, grew 4.4 percent in the quarter, an increase that came on the company's largest regional base.
Growth in North America at L&T Technology came despite cautious spending among large technology clients. The company said demand in the region remained steady through the quarter, with new deal wins contributing to the improvement. The region remains by far the company's largest market by revenue.
L&T Technology expects strong second half of FY27
The outlook for the second half rests on the order backlog built up over recent quarters and several large deals in the pipeline. L&T Technology said the combination of a healthier backlog and its effort to win larger contracts supports its confidence about the medium-term trajectory. The company has put a dedicated effort behind winning larger contracts, and it expects that work to pay off over the coming quarters as more of the backlog converts steadily into revenue.
Chief executive Amit Chadha linked the results to demand for the company's engineering intelligence solutions. "Growing demand for our engineering intelligence solutions, diversified portfolio, dedicated large-deal engine and improving regional opportunities give us confidence in our medium-term trajectory," Chadha said on Monday in a statement issued with the quarterly results.
The company has said execution of those deals drove the second-quarter performance, and L&T Technology expects the remaining backlog from those wins to support revenue in the third and fourth quarters. The third and fourth quarters are expected to draw on the same set of recent large-deal wins.
The results came against a difficult backdrop for engineering, research and development services. The industry has faced headwinds from limited adoption of electric vehicles, which has slowed expected engineering work for vehicle makers. At the same time, a wider macro overhang has made clients cautious about technology spending. Those are conditions that matter for a company drawing about a third of its revenue from mobility clients.