The board of directors of L&T Technology Services announced a remarkable interim dividend of ₹20 per equity share for FY2026-27, translating to a 1000% dividend rate for the quarter. As per the company's exchange filing, the record date for determining shareholders eligible for the dividend payout is October 27, 2026, with dividend income being taxable in shareholders' hands and tax deducted at source (TDS) at applicable rates. Following the results announcement, shares of L&T Technology Services closed at ₹3,609.80, down 2.76% for the day, indicating mixed market sentiment despite the strong quarterly performance.
L&T Technology Services delivered exceptional growth across all financial metrics in Q2 FY27. The company achieved consolidated net profit of ₹5,487 crore, representing a remarkable 67% year-on-year increase compared to the corresponding quarter of the previous fiscal year. According to the latest reports, consolidated revenue from operations reached ₹3,040.40 crore, up 12.05% year-on-year and 3.41% sequentially from ₹2,713.30 crore in Q2 FY26. Earnings per share (EPS) increased significantly to ₹51.61 from ₹30.97 in the year-ago period, demonstrating the company's enhanced profitability and operational efficiency across its business segments. The company's EBIT margin rose to 16.3% in Q2 FY27, up 220 basis points year-on-year and 160 basis points sequentially, with the company reaching its mid-16% margin aspiration ahead of schedule.
A closer analysis of the company's performance reveals that revenue per employee increased 8.9% in rupee terms to ₹12.65 lakh in Q2 FY27, compared to ₹11.62 lakh in the year-ago period. However, in dollar terms, revenue per head barely moved, rising just 0.4%, highlighting the significant impact of currency fluctuations. The company's realised exchange rate was 95.90 to the dollar, against 88.40 a year ago, meaning each dollar fetched 8.5% more rupees. As the company earns about 87% of its revenue outside India, the weaker rupee significantly boosted rupee revenue growth despite minimal impact on dollar-denominated metrics.
The company secured large deals with a combined total contract value (TCV) of more than $200 million during the September quarter, with AI-related projects accounting for over half of this amount. The wins included one contract worth $75 million, another worth more than $30 million, one worth $25 million and six deals valued at more than $10 million each. CEO and managing director Amit Chadha stated that the company expects revenue growth to gain momentum in the second half of FY27, supported by a stronger pipeline of potential projects and a growing order backlog. The company aims to achieve annual revenue growth of 13-15% over the next five years, while keeping EBIT margins between 16% and 17%.
The company's consolidated segment-wise results showed revenue growth across all key business segments. Sustainability revenue increased to ₹1,156.60 crore from ₹940.90 crore in the year-ago period, while Mobility segment revenue rose to ₹981.90 crore from ₹865.10 crore. The Tech segment revenue edged up to ₹901.9 crore from ₹900.9 crore, with segment results also improving during the period. Mobility reported a result of ₹166.4 crore against ₹148.1 crore in the June quarter, while Sustainability contributed ₹341.5 crore, up from ₹317.8 crore, and the Tech segment reported ₹107.8 crore compared with ₹103.6 crore previously. The company's Sustainability business recorded its strongest growth during the quarter, while the Mobility business continued to grow and the Technology segment remained steady.
