L&T Technology Services (LTTS) has revised its revenue forecast for FY26, now expecting mid-single-digit growth instead of earlier double-digit guidance. The company cited shifting client priorities and market trends, while emphasizing a pivot toward full-stack Engineering Intelligence solutions. LTTS remains focused on resilience and long-term positioning in the ER&D sector.
Indian engineering research and development (ER&D) firm L&T Technology Services Ltd (LTTS) has announced that it is guiding for mid-single-digit overall growth in FY26, a downgrade from its earlier double-digit forecast.
Highlights of the Update:
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Revised guidance: LTTS expects revenue growth in the range of 4–6% for FY26.
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Reasoning: CEO Amit Chadha explained that the company has reassessed client spending priorities and market conditions, leading to a more cautious outlook.
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Strategic pivot: LTTS is focusing on delivering full-stack Engineering Intelligence (EI) solutions, expanding offerings beyond traditional ER&D services.
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Regional focus: The company is realigning its geographic strategy to strengthen resilience amid global demand shifts.
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Financial context: LTTS also recorded a one-time charge of ₹354 million related to India’s new labour codes, impacting near-term profitability.
Why It Matters:
The guidance reflects industry-wide caution in the ER&D sector, where global clients are tightening budgets. LTTS’s pivot toward Engineering Intelligence signals a long-term strategy to differentiate and sustain growth despite near-term headwinds.
Sources: Reuters, MarketScreenerMarketScreener.com