L&T Tech Q3 Results Review — Motilal Oswal Reiterates 'Buy' On The Stock; Revises Target Price; Here's Why

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Motilal Oswal Report

L&T Technology Services Ltd.’s Q3 FY25 revenue was up 1.7% QoQ/7.3% YoY in USD terms versus our estimate of ~3.7% QoQ growth. In CC terms, revenue was up 3.1% QoQ/8.7% YoY. Growth was led by Hi-tech (up 9.8% QoQ), followed by sustainability (up 3.1% QoQ). Ebit margin stood at 15.9%, up 80 bp QoQ but down 130 bp YoY (after adjusting one-time non-operational M&A expense, it was 16.2%).

PAT stood at Rs 3.1 billion (estimate: Rs 3.5 billion), down 0.9% QoQ/5.8% YoY. For 9MFY25, revenue grew 8.1%, but Ebit/PAT declined 2.1%/1.3% compared to 9MFY24. We expect revenue/Ebit/PAT to grow by 13.6%/5.6%/9.2% in Q4 FY25 YoY. We reiterate our Buy rating on the stock with a revised target price of Rs 5,500 (based on 31x FY27E EPS).

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