L&T Technology Q2 Results Review - Inline With Expectations; Outlooks Retained: Axis Securities

Axis Securities Report

In Q2 FY25, L&T Technology Services Ltd. reported revenue of Rs 2,572.9 Cr, up 4.5% QoQ. The company’s operating profit stood at Rs 387.7 crore, reflecting a growth of 1.1% QoQ. Operating margins declined by 50 bps to 15.1%, primarily due to higher onsite expenses during the quarter. Net profit for Q2 FY25 stood at Rs 319.6 crore, registering a 1.9% QoQ growth.

From a long-term perspective, we believe L&T Tech is well-positioned for strong growth, supported by its multiple long-term contracts with leading global brands.

Enhanced revenue visibility strengthens our confidence in the company’s future business growth. However, concerns over the outlook for major economies, along with ongoing supplyside constraints, create uncertainties regarding the company’s short-term growth rates.

We recommend a Hold rating on the stock, assigning a 33 times price/earnings multiple to its FY26E earnings of Rs 165.2/share, arriving at a target price of Rs 5,510/share. This implies an upside of 3% from the current market price.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.