LTTS shares up 4% as Q1 profit and revenue rise, Anthropic partnership

L&T Technology Services shares rose 4 per cent to ₹3,420 on the NSE on Wednesday after the company reported higher June quarter earnings and revenue and announced a partnership with Anthropic to accelerate Engineering Intelligence by integrating Claude models across engineering processes and LTTS’ AI-powered platforms.

The company’s consolidated net profit for the quarter ended June 2026 rose 12.9 per cent y-o-y to ₹357.1 crore from ₹316.1 crore in the corresponding quarter last year.

Revenue from operations increased 11.47 per cent to ₹2,940.1 crore in the quarter under review from ₹2,637.5 crore in the year-ago period.

Emkay Global said LTTS reported a steady operating performance, with revenue growing, while EBIT margin expanded 50 basis points q-o-q to 15.7 per cent. The brokerage said the performance reflected early benefits from a favourable business mix, Engineering Intelligence-led productivity initiatives and alignment with the company’s five-year Lakshya strategy.

The brokerage noted that LTTS reported around $100 million of large deal wins during the first quarter, with some deals shifting to early second quarter closure, including a large telecom deal expected to ramp up quickly following closure. Emkay Global retained its add rating and target price of ₹3,800 at 22x June 2028 estimated earnings per share.

Motilal Oswal said it expects EBIT margins to improve to around 15.8 per cent by FY27E, supported by a better mix and execution, while largely keeping its estimates unchanged. The brokerage maintained its neutral rating with a target price of ₹3,400 based on 20x FY28E earnings per share.

The brokerage added that AI now features in almost every client discussion, with engagements increasingly moving from consulting to implementation. It said LTTS strengthened its AI ecosystem through partnerships with Anthropic and Databricks, supporting market share gains and larger transformation opportunities, although pricing and productivity pass-through remain a medium-term watch point.

JPMorgan maintained its neutral rating on L&T Technology Services and cut its target price to ₹3,300 from ₹3,400. The brokerage said the first-quarter performance beat expectations on both revenue and margins, although large deal total contract value was weak. It added that the company provided an optimistic outlook for the rest of FY27 and said it had cut earnings estimates by 2-7 per cent mainly due to forex losses.

Kotak Securities maintained its reduce rating and cut its target price to ₹3,350 from ₹3,450. The brokerage described the quarter as a decent performance amid demand uncertainties and expects sequential growth and margin expansion through FY27 while factoring in higher forex losses due to long-term hedges.