L&T Technology Services Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

L&T Technology Services Ltd trades at ₹3,415, in a downtrend and 25 weeks into that stage. That is −8.1% against its own 200-day average. It sits at 23% of a 52-week range of ₹3,048 to ₹4,676. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (9 weeks and counting).

Today the stock is in a downtrend — week 25 of stage 4, confirmed. At ₹3,415 it trades −8.1% versus its 200-day average and sits at 23% of its 52-week range (₹3,048–₹4,676).

Against the market, two honest reads. Cumulative: over the last 9.8 years the stock moved +293% while the NIFTY 500 moved +211% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (9 weeks and counting; last ahead the week of 2026-06-10) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 40th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

L&T Technology Services Ltd trades at 27.0× P/E, mid-range by its own standards (40th percentile). Its long-run median P/E is 32.9×, measured across 9.8 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 27.0× is mid-range by its own standards (40th percentile), against a long-run median of 32.9× measured over 9.8 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +0.9% against a −22.4% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +0.1%/yr price move, ~+11.8%/yr came from earnings growth and ~−11.7 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

L&T Technology Services Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE holding at 26.5% — the per-curve reads carry the story. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

52.5/100 — rank 3 of 7 in IT - ER&D · 94% evidence confidence

L&T Technology Services Ltd scores 52.5 out of 100 against the 7 companies it is compared with in IT - ER&D, ranking 3. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 19.1 + 16 + 6.5 + 10.9 = 52.5. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

L&T Technology Services Ltd reported ₹2,940 Cr of revenue in the Jun 26 quarter, +11.4% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 13.6% a year. The last full year, FY26, came in at ₹10,996 Cr. The last four reported quarters add to ₹11,565 Cr.

L&T Technology Services Ltd reported ₹2,940 Cr of revenue in the Jun 26 quarter, +11.4% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 13.6% a year. The last full year, FY26, came in at ₹10,996 Cr. The last four reported quarters add to ₹11,565 Cr.

FY26 revenue came in at ₹10,996 Cr (+14.0% on the year), capping 10 years at 13.6% compound. The latest quarter (Jun 26) printed ₹2,940 Cr, +11.4% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +10.2% growth against the decade's 13.6% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +10.1% over the last 4 quarters against +8.6%/yr over the last 8 — stabilising; TTM profit +4.4% vs +0.5%/yr — accelerating.

→ Revenue grew — did margins hold as it scaled? Next: 19.0% this quarter (+2.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

L&T Technology Services Ltd's operating margin is 19.0% in the Jun 26 quarter, +2.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 15.0% to 22.0%. The current quarter sits inside that band.

L&T Technology Services Ltd's operating margin is 19.0% in the Jun 26 quarter, +2.0 percentage points against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 15.0% to 22.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 19.0%, +2.0 pp against the same quarter a year ago. Across 12 fiscal years the operating margin has ranged 15.0%–22.0%.

Why the margin moved: operating margin went +1.9 pp year on year while gross margin went +0.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins held — did that reach the bottom line? Next: profit +13.0% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

L&T Technology Services Ltd earned ₹357 Cr of net profit in the Jun 26 quarter, +13.0% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹1,281 Cr. The 10-year compound rate is 11.8%. That is 12.1% of the quarter's revenue. The same quarter a year earlier earned ₹316 Cr.

L&T Technology Services Ltd earned ₹357 Cr of net profit in the Jun 26 quarter, +13.0% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹1,281 Cr. The 10-year compound rate is 11.8%. That is 12.1% of the quarter's revenue. The same quarter a year earlier earned ₹316 Cr.

Jun 26 profit was ₹357 Cr, +13.0% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹1,281 Cr (+1.3%), and the 10-year compound rate is 11.8%.

Why profit moved: revenue contributed +11.4% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +4.5% vs revenue +10.2%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 115% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 115% of L&T Technology Services Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹1,455 Cr of operating cash against ₹1,281 Cr of profit. After ₹334 Cr of capital spending, ₹1,121 Cr was left as free cash.

FY26: operating cash of ₹1,455 Cr against reported profit of ₹1,281 Cr, leaving free cash of ₹1,121 Cr after ₹334 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 115% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 115%: the cash cycle tightened 16 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 2.0× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹1,882 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

L&T Technology Services Ltd's cash conversion cycle runs 67 days in FY26, down from 83 days in FY21. Capital spending ran ₹1,882 Cr over the last 3 years. At FY26 sales of ₹10,996 Cr each day of that cycle holds about ₹30.1 Cr, so roughly ₹2,018 Cr sits inside the business at any moment.

FY26: debtors at 67 days (an asset-light business — no inventory to speak of) — for a full cycle of 67 days, tighter than FY21's 83.

In money terms: at FY26 sales of ₹10,996 Cr, each day of the cycle holds about ₹30.1 Cr — so the 67-day loop keeps roughly ₹2,018 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,882 Cr over the last 3 fiscal years against ₹920 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹12.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 27% and the ROIC − WACC spread is +19.2 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

L&T Technology Services Ltd earns a ROCE of 27% in FY26. That is up from a trough of 27% in FY21. Return on invested capital clears the cost of that capital by +19.2 percentage points, so growth here adds value rather than only size. The wiring behind it is 11.6% net margin on 1.05× asset turns.

FY26 ROCE is 27%, recovered from a FY21 trough of 27% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 11.6% net margin × 1.05× asset turns × 1.62× balance-sheet leverage ≈ 19.7% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 31.2% − 12.0% = a +19.2 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.09.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

L&T Technology Services Ltd carries total debt of ₹579 Cr against shareholder equity of ₹6,492 Cr as of Jun 26, a debt-to-equity of 0.09 — effectively unlevered. On the annual view that ratio went from 0.11 in FY22 to 0.09 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹579 Cr against shareholder equity of ₹6,492 Cr — a debt-to-equity of 0.09. On the annual view, debt-to-equity went from 0.11 (FY22) to 0.09 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 1.0 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 1.0 points of L&T Technology Services Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 14.1% of the company. Foreign institutions moved −0.3 points over the same window, to 4.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +1.0 points over 8 quarters to 14.1%; Foreign institutions: −0.3 points over 8 quarters to 4.1%; Promoters: −0.2 points over 8 quarters to 73.5%.

Why the register moved: domestic institutions drove it (+1.0 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

L&T Technology Services Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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