LTTS Navigates New Labour Codes Amid Growth in Key Sectors

L&T Technology Services (LTTS) reported a 6.14% decline in net profit for Q3 FY26, impacted by new Labour Codes provisions. Revenue increased by over 10%, highlighting strong deal momentum and sectoral growth. Key areas like AI and mobility continue to expand amidst employee strength of 23,639.

L&T Technology Services (LTTS) announced a 6.14% decrease in its consolidated net profit for the December quarter of FY26, citing a Rs 35.4 crore provision due to the implementation of new Labour Codes. Despite the setback, LTTS reported a notable increase in revenue, which rose by 10.19% to Rs 2,923.5 crore, compared to the same period in the previous year.

The company has prepared for potential incremental impacts from the Labour Codes, assessing an exceptional item amounting to Rs 354 million. As new regulations are clarified, LTTS plans to evaluate further implications. The company's strategic push in high-growth areas such as AI and Engineering Intelligence sustains its business momentum, with major deals totaling USD 200 million over consecutive quarters.

CEO Amit Chadha revealed that LTTS is focusing on expanding its AI offerings and other high-margin sectors, aligning these efforts with its Lakshya plan. By the end of Q3 FY26, LTTS employed 23,639 people, reinforcing its capacity to deliver integrated digital and physical AI solutions. The mobility sector's turnaround and sustainability segment's double-digit growth underline LTTS's robust performance amidst regulatory challenges.

(With inputs from agencies.)