Analysts split on LTTS post Q2FY26 results; should you buy, sell or hold?

Analysts at Choice Institutional Equities have upgraded LTTS to 'Buy' from 'Add', while Centrum Institutional Research has maintained its 'Neutral' rating on the stock

Analysts remain divided on L&T Technology Services (LTTS) shares following the announcement of the company’s financial results for the second quarter of FY2025–26 (Q2FY26).

 

Analysts at Choice Institutional Equities have upgraded their rating on LTTS to ‘Buy’ from ‘Add’, maintaining their PE multiple at 28x and arriving at a target price of ₹4,850. Meanwhile, those at Centrum Institutional Research have retained their ‘Neutral’ rating on the stock, with a revised target price of ₹4,338 (down from ₹4,486 earlier) at an unchanged PE of 26x based on Sep’27E EPS.

 

Amid this, LTTS shares opened positively on Monday at ₹4,180.45 per share, compared with the previous close of ₹4,150.55 on the BSE. As of 9:30 AM, the stock was trading with marginal gains of 0.49 per cent at ₹4,171. 

 

Earlier, on Friday, October 17, the company reported a 2.8 per cent year-on-year increase in consolidated net profit to ₹328.7 crore for Q2FY26, compared with ₹319.6 crore in the same period last year. Revenue from operations stood at ₹2,979.5 crore, up 15.8 per cent from ₹2,573 crore reported in Q2FY25. The company’s Ebit margin stood at 13.4 per cent.

Choice on L&T Technology Services 

Analysts at Choice Institutional Equities believe LTTS is well-positioned for an H2FY26 recovery, supported by sustained large-deal momentum, margin tailwinds from operational efficiencies, and continued traction in high-growth sustainability and AI-led engineering segments.

 

“Integration synergies from Intelliswift and sharper focus on value-accretive portfolios are expected to strengthen profitability. While near-term execution remains key, robust deal pipelines and improving demand outlook underpin confidence in medium-term growth,” the brokerage said in a research note.

 

Choice expects steady double-digit revenue growth of 11.7 per cent over FY25–28E, backed by strong deal momentum, rising AI-led demand, and broad-based execution, though near-term growth could remain modest due to softness in the automotive sector and project ramp-up delays.

 

The company reiterated its mid-16 per cent margin target by Q4FY27E. However, the brokerage remains conservative, projecting EBIT margin expansion to 15.7 per cent by FY27E, as execution discipline and revenue mix improvements offset near-term wage and mobility headwinds.  CATCH STOCK MARKET LIVE UPDATES TODAY

Centrum on L&T Technology Services

According to Centrum Institutional Research, sequential revenue growth was modest as automotive program pauses and delayed deal transitions affected momentum. The Sustainability vertical grew 3 per cent QoQ and 12.6 per cent Y-o-Y.  The US and Europe markets continued to expand steadily, supported by ramp-ups in industrial and plant engineering. Integration of Intelliswift bolstered the tech segment, though some softness persisted in the US med-tech space. Management expects the second half of FY26 to outperform the first, driven by contributions from large deals and AI-based solutions.

 

“A healthy order book and rising AI monetisation (1 per cent of TTM revenue, targeted at 5 per cent) strengthen outlook visibility. The company remains focused on profitable growth and consistent margin expansion through FY26, supporting a constructive medium-term view,” Centrum analysts wrote.