L&T Tech Q2 Review: IDBI Capital Maintains 'Buy', Sees 15% Upside Potential — Check Target Price

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IDBI Capital Report

L&T Technology Services Ltd. reported a resilient performance as revenue stood at Rs 2,980 crore, up 4% /15.8% QoQ/YoY, while USD revenue rose 10.4% YoY in CC term and margin improving to 13.4%.

The company secured record large deals worth $292 million, primarily from the Sustainability and Tech segments, which both reported double-digit growth. L&T Tech’s proactive push towards AI-driven solutions is evident in its 216 GenAI patents and successful monetization of platforms like PLxAI and QGuard.ai.

Operational discipline led to stronger cash flows and reserves, while management remains optimistic about the second half of the year due to an expected recovery in the auto sector, better offshoring, portfolio refinement, and the Intelliswift integration.

The company reiterated its commitment to double-digit growth for FY26 and aims to raise Ebit margin to 16–16.5% by FY27–28.

Strategic bets on AI, new leadership additions, and emphasis on core segments position L&T Tech well for future growth.

We maintain a Buy rating and a target price of Rs 4,774 and valuing the stock at 31.4x FY27E earnings per share.

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