LTTS is an engineering services provider incorporated in 2012, offers engineering,, research and development (ER&D) and digitalization solutions to companies in the areas such as Transportation, Industrial Products, Telecom and Hi-Tech, Medical Devices and Plant Engineering. Company’s business segments include Tech, Sustainability and Mobility.

Under Tech business segment company provides services like software development, hardware design, product maintenance, testing, value analysis, manufacturing engineering, regulatory compliance, etc for MedTech, Semiconductors, Consumer Electronics, Hyperscalers, and Next-Gen Communication sectors.

Under its mobility business, the company provides end-to-end services from concept to manufacturing and sourcing support, assisting OEMs and Tier 1 suppliers in developing cost-efficient vehicles and improving transportation technology across Aerospace, Automotive, Rail, Commercial Vehicles, and Trucks & Off-highway sectors.

And under its sustainability business segment the company provides product development services leveraging software, electronics, connectivity, mechanical engineering, and industrial networking expertise. It enhances design and operational efficiency across Industrial Machinery, Building Technology, Electric & Power, FMCG, and Oil & Gas sectors.

The company has a huge clientele of 378 clients including 69 Fortune 500 companies and 57 top ER&D companies. Out of which 7 clients are More than $30 Mn, 10 are More than $20 Mn, 34 are More than $10 Mn, 64 More than $5 and 183 are More than $1 Mn valuation companies. The company operates 22 global design centers, 30 global sales offices, and 108 innovation labs across 25 countries, as of Q3 FY25 and it holds held 1,448 patents, including 903 co-authored with customers and 545 filed independently.

Recently in January, the company completed the acquisition of Intelliswift Software (India) Pvt Ltd and Intelliswift Software Inc, for $110 Mn, forming a new sub-segment called Software & Platforms to enhance its presence in Hyperscalers and entering the Service-led sectors namely Retail, Fintech and Healthcare.

The company has also expanded its alliances with the world’s leading hyperscalers, including Microsoft Azure, Google Cloud, Intel, AWS, and NVIDIA. 

Fundamentals:

Financial Results:

• Revenue at ₹26,530 million; growth of 3.1% QoQ and 9.5% YoY
• USD Revenue at $312 million; growth of 3.1% QoQ and 8.7% YoY in constant currency
• EBIT margin at 16.2% excluding one-time non-operational M&A expense; up 110 bps QoQ
• Net profit at ₹3,224 million; growth of 0.9% QoQ
• Company signed 8 large deals including one USD 50 million, two USD 35 million, two USD 25 million, and three USD 10 million deals.

Company’s Tech’s Segment business revenue grew 6% YoY in 9M FY25, driven by MedTech, hyperscale’s, and communication providers, with enhanced SWC capabilities. Its mobility segment revenue increased by increased by 12% YoY in 9M FY25 and its sustainability segment’s revenue rose 6% YoY in 9M FY25, driven by growing demand for plant modernization and automation. 

Key Highlights:

1. Altair a global leader in computational intelligence, and L&T Technology Services (BSE: 540115, NSE: LTTS) together launched a groundbreaking 5G-6G Wireless Center of Excellence (CoE). The CoE will harness the potential of 5G and 6G networks to address prevailing industry challenges like connectivity breakdowns, high operational costs, and slower innovation cycles for applications in segments like Mobility and Tech.
2. The company has joined the Arizona Technology Council (AZTC) to expand its global reach in cutting-edge smart city and digital solutions. This partnership underscores LTTS Smart World's commitment to driving innovation and sharing expertise to shape the future of cities worldwide while strengthening Arizona’s technology ecosystem.
3. The company has also been awarded a multiyear, $80 million deal with a US-based manufacturer of industrial products and solutions. This strategic partnership will accelerate the client’s digital transformation through the integration of advanced technologies, including connected products and the digital thread, paving the way for greater innovation at scale.
4. It has also been selected by a leading global network solutions firm to provide Product Integration Services in North America, ensuring seamless deployment and support for customers across the region.  The multi-year agreement, estimated at USD 50 million, will enable the company to provide comprehensive support for the client’s advanced networking solutions, ensuring seamless integration and success for customers across the region.
5. It has also collaborated with the Colorado Smart Cities Alliance to drive innovation and technology integration in smart city development projects across Colorado.
6. LTTS has also signed a definitive agreement to acquire Silicon Valley-based Intelliswift, to deepen its offerings across software product development, platform engineering, Digital Integration, Data and AI.  Intelliswift services 4 of the Top 5 Hyperscalers and caters to over 25 Fortune 500 companies including 5 of the top 10 ER&D spenders in Software and Technology.  With this acquisition, LTTS will also be able to address adjacent markets of Retail and Fintech, along with the Private Equity channel.
7. It has also opened its new state-of-the-art LTTS Experience Zone at its design hub in Bengaluru benefitting customers in segments like Mobility and Tech. The LTTS Experience Zone offers an immersive environment where visitors can engage with live demonstrations, interactive displays and expert consultations. It showcases the transformative power of NVIDIA AI, pushing the boundaries of AI-driven technologies to address complex challenges in critical sectors.
8. Thales, a leading global technology and security provider, has also signed a new contract with LTTS. This partnership will bring Thales’s software monetization platform, Thales Sentinel, to LTTS’ customer base, especially in the High-tech, Sustainability and Mobility segments.
9. Company has also signed a long-term framework agreement with Shell, one of the world's largest energy companies. This multi-year framework agreement will see LTTS providing Integrated Engineering and Procurement Services along with Digital Engineering Services, Data Governance for Capital Projects, and Digital Project Management Consultancy for Shell’s global assets as necessary.

L&T Technology Services is strategically positioned to benefit from key industry trends that are driving growth in the engineering and R&D services sector. The increasing adoption of Industry 4.0, Internet of Things (IoT), 5G connectivity, and digital twin technologies has created significant opportunities for innovation and value addition. As industries like automotive, aerospace, and healthcare embrace digital transformation, L&T Technology Services' expertise in these domains strengthens its competitive edge. Additionally, the rising demand for sustainable engineering solutions, smart manufacturing, and AI-driven automation aligns well with the company’s service offerings. With a strong focus on innovation and client-centric solutions, L&T Technology Services is well-positioned to capitalize on these emerging trends, driving long-term growth and shareholder value.

HET ZAVERI

info@smartinvestment.in

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