L&T Technology Services reports 9.5% YoY revenue growth in Q3 FY25
L&T Technology Services Limited (LTTS), a subsidiary of Larsen & Toubro, has announced an impressive 9.5% year-on-year (YoY) growth in revenue for the third quarter of FY25. With revenue reaching ₹26,530 million, the company showcased its ability to adapt to evolving market demands, particularly in sustainability and technology. L&T Technology Services also achieved its highest-ever large deal bookings, demonstrating its robust position in the global engineering technology services landscape.
Amit Chadha, Chief Executive Officer and Managing Director, attributed this growth to the company’s proactive investments in AI capabilities, software engineering, and client-centric innovations. This approach, he noted, has allowed LTTS to capitalize on emerging opportunities in hyperscalers, medtech, and plant automation.
Strategic Growth Driven by Sustainability and Tech Demand
L&T Technology Services’ performance in Q3 FY25 was underpinned by its ability to align with two major global trends: sustainability and technology integration. The sustainability segment reported a sequential growth of 4%, driven by heightened demand for plant modernization and industrial automation. Similarly, the technology segment witnessed an 11.1% quarter-on-quarter surge, bolstered by strategic partnerships in medtech and hyperscalers.
The company’s operational metrics also improved, with its EBIT margin increasing to 16.2%, excluding one-time M&A-related expenses. This improvement highlights the efficiency of its “Go Deeper to Scale” strategy, which focuses on deepening engagements with key clients while scaling new service offerings.
Largest-Ever Deal Wins Showcase Market Leadership
A key highlight of LTTS’ Q3 performance was its record-breaking large deal wins. The company secured eight high-value contracts across diverse industries, including a $50 million deal with a leading North American network provider and several multimillion-dollar agreements in automotive, oil and gas, and healthcare.
These deals underscore LTTS’ expertise in delivering end-to-end engineering technology services, from product development to platform integration. According to Chadha, these engagements also reflect the company’s focus on emerging markets such as retail, fintech, and healthcare, facilitated by its recent acquisition of Intelliswift.
Intelliswift Acquisition Expands Software Engineering Capabilities
The acquisition of Silicon Valley-based Intelliswift has enabled LTTS to establish a dedicated Software & Platforms sub-segment, enhancing its capabilities in AI, digital transformation, and software product engineering. This move has positioned the company to address growing demand in service-led sectors, including retail and fintech, while also strengthening its footprint in traditional industries such as healthcare.
By integrating Intelliswift’s expertise with its own, L&T Technology Services aims to deliver unified solutions that cater to clients’ evolving needs. This approach aligns with its broader goal of achieving $2 billion in revenue and a 17-18% EBIT margin in the medium term.
Innovation at the Core: NVIDIA AI Experience Zone and Beyond
A pivotal initiative for LTTS during the quarter was the launch of the NVIDIA AI Experience Zone at its Bengaluru design hub. This state-of-the-art facility is designed to accelerate AI-driven innovations for clients in mobility and technology. With 174 patents filed in AI and generative AI applications, LTTS has reaffirmed its commitment to leveraging advanced technologies to deliver cutting-edge solutions.
The company’s innovation efforts are complemented by its focus on sustainability, as evidenced by its growing portfolio of eco-conscious engineering projects. Notable examples include plant automation contracts and integrated operations centres for energy companies, which blend technology with environmental responsibility.
Financial Outlook: Sustained Growth in a Competitive Market
For FY25, LTTS has projected a near 10% revenue growth in constant currency, building on its strong performance in Q3. This forecast reflects the company’s confidence in its ability to navigate challenges in the global engineering and technology services sector.
With a robust pipeline of large deals, continued investment in AI and digital transformation, and a growing presence in emerging markets, L&T Technology Services is well-positioned to maintain its competitive edge. The company’s strategic focus on sustainability, technology, and client-centric innovation will likely drive further growth as it aims to achieve its medium-term objectives.
Industry Recognition Highlights Excellence
L&T Technology Services’ achievements have been widely recognized, with accolades such as the 2025 BIG Innovation Award in Transportation for its AnnotAI solution and a top rating by Zinnov for digital engineering and R&D services. These recognitions underscore the company’s leadership in delivering transformative solutions that align with global trends.
L&T Technology Services’ Q3 FY25 results highlight its ability to adapt, innovate, and lead in a dynamic industry. By prioritizing sustainability, technology, and client-focused strategies, the company has not only achieved remarkable growth but also positioned itself as a key player in engineering technology services. With a clear vision for the future and a proven track record of excellence, LTTS continues to set new benchmarks in the industry.
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