LTTS Secures $203 Million in Large Deals, More Than Half AI-Led

In Q2 FY27, L&T Technology Services (LTTS) reported $317.1 million in revenue, up 4.8% year-over-year in constant currency. This performance was driven by $203 million in total contract value (TCV) from major deal wins, over 50% of which were powered by AI-led initiatives.

The engineering research and development (ER&D) services company recorded 2.7% sequential revenue growth in constant currency for the quarter ended September 30, 2026. Its earnings before interest and tax (EBIT) margin rose 60 basis points sequentially to 16.3%.

The company secured one $75 million deal, one deal worth more than $30 million, one $25 million deal and six deals worth more than $10 million each. It also reported $120 million in annualised revenue from Engineering Intelligence (EI)-led solutions. LTTS did not disclose the year-on-year growth rate or how much of that revenue came directly from AI.

“Large deal wins from earlier quarters are converting into revenue, and we are continuing to have a robust pipeline of the same,” Amit Chadha, CEO and MD of LTTS, said during the earnings call.

EI covers solutions across engineering, products, manufacturing and operations. LTTS’ EIOne platform includes more than 100 solutions. The company reported more than 250 AI patent filings during the quarter, taking its total patent portfolio to 1,808, including 1,085 co-authored with clients.

LTTS also launched an Engineering Intelligence Lab with NVIDIA to develop Physical AI applications for manufacturing, robotics and supply chains. Industrial AI applications are also being tested in factory optimisation. For instance, Shodh AI cut a factory optimisation task from 500 hours to 5.6.

Separately, an AI-led engagement with a global telecom equipment provider to design systems for AI data centres began ramping up during the quarter, according to Chadha.

For engineering services providers, the commercial question is how AI-driven productivity gains translate into revenue and margins as clients seek lower delivery costs. The issue is also shaping expectations for Indian IT earnings, as investors assess the economics of AI.

LTTS reported net income of ₹548.2 crore, up 66.8% year on year and 53.7% sequentially. The figure included a one-time, post-tax gain of ₹165 crore from the sale of its Smart World and Communication (SWC) business, completed on September 1.

Revenue grew 12.1% year on year in rupee terms. Sustainability revenue rose 13.4% year on year and 2.9% sequentially, while Mobility revenue increased 2.3% sequentially. The technology segment remained broadly stable.

LTTS expects revenue momentum to strengthen in the second half of FY27 as large deals ramp up. Chadha reiterated the company’s aspiration to achieve a revenue CAGR of 13% to 15% and EBIT margins of 16% to 17% over the next five years.