l&t technology services expects a robust second half of fiscal year 2027 on improving order backlogs and several large deals, the company said on Monday as it reported a jump in second-quarter revenue. The engineering services firm’s strong showing in the three months ended 30 September was powered by the execution of large deals won in recent quarters and higher client spending in its sustainability segment.
Consolidated revenue rose to 30.4 billion rupees ($320.25 million) for the quarter, from 27.13 billion rupees a year ago. Net profit from continuing operations rose 19.6 per cent to 3.80 billion rupees; including discontinued operations, net profit rose 66.8 per cent. The results beat the gloom surrounding the engineering, research and development industry, which has been facing headwinds from the limited adoption of electric vehicles and a macroeconomic overhang that has hurt technology spending.
Revenue at the sustainability segment, which comprises industrial products and plant engineering and is the company’s biggest revenue generator, expanded 22.9 per cent year-on-year. The mobility unit, from which the company derives about a third of its revenue, grew 13.5 per cent, while revenue from the tech segment was flat. Revenue from North America, which accounts for 60.7 per cent of overall revenue, grew 4.4 per cent.
L&T Technology Services Bets on Large-Deal Engine
“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,” chief executive Amit Chadha said. The company’s large-deal engine, a focused sales motion for multi-year, multi-million-dollar contracts, has been central to its strategy of winning work that competitors might chase deal by deal.
The sustainability segment’s outperformance is particularly notable. Industrial products and plant engineering clients have increased spending even as automotive clients pull back, suggesting the company’s diversification across verticals is paying off at exactly the right moment in the cycle.
L&T Technology Services Navigates Sector Headwinds
The broader ER&D industry has struggled with two structural challenges: the slower-than-expected adoption of electric vehicles, which has delayed engineering programmes at automotive clients, and a general caution in technology spending as macroeconomic uncertainty persists. Against that backdrop, L&T Technology Services’ double-digit revenue growth stands out.
The flat performance of the tech segment and the modest 4.4 per cent growth in North America, the company’s largest geography, show that the headwinds are real. But the improving order backlog and the pipeline of large deals give management the confidence to guide for a stronger second half, when deal ramp-ups typically accelerate.
What the Results Mean for L&T Technology Services Investors
With the rupee at 94.9250 to the dollar, currency movements have added a tailwind to reported numbers, but the underlying story is one of execution: winning large deals in recent quarters and converting them into revenue. If the second half delivers as management expects, the company will have navigated one of the tougher periods for engineering services with its growth credentials intact.
Investors will now watch whether the large-deal pipeline continues to replenish. In a sector where visibility beyond two quarters is rare, the company’s willingness to talk up the second half suggests the backlog is giving it genuine comfort, not just hope.
The results were reported from Bengaluru, with the company attributing the quarter’s strength to the conversion of its deal pipeline rather than any single large contract. The sustainability vertical, built around industrial products and plant engineering, has become the company’s steadiest growth engine, expanding nearly 23 per cent even as automotive-linked engineering work slowed across the industry.
Currency provided a modest tailwind, with the rupee averaging 94.9250 to the dollar during the quarter, but management’s emphasis was on the quality of the backlog. With large deals signed in recent quarters now ramping into revenue and regional opportunities improving, the company believes the second half of fiscal 2027 will validate its large-deal strategy. Investors will look for confirmation in the order inflow numbers when the company reports next.