BSE IT Technology Sector Regulatory Filings — October 25, 2026

Q2 FY27 revenue of ₹3,040 crore grew 3.4% QoQ and 12.1% YoY, indicating accelerating sequential and annual growth

EBIT margin of 16.3% rose 60 bps QoQ and 220 bps YoY, a material operating leverage improvement

Large-deal TCV of $203 million, over 50% AI-led, signals strong forward order book quality in higher-value AI engagements

Engineering Intelligence (EI)-led annualized revenue run-rate of $120 million points to a scaling new-growth vector

Net income up 53.7% QoQ and 66.8% YoY includes a one-time ₹165 crore SWC divestment gain; ex-gain underlying growth is materially weaker

Management described Auto Europe as muted, an ongoing soft spot in the segment mix

Tech segment described as stable/muted, limiting near-term upside from that vertical

Ramp-down of a Medtech program creates a revenue headwind in coming quarters

Guided ₹20 per share interim dividend supports income-oriented holders and signals cash generation confidence

DSO of 78 days (billed 60, unbilled 18) sits within the guided 80-85 day range, consistent with disciplined collections

Annualized continuing-operations EPS of ₹143.12 (quarterly ₹35.78) runs 23.5% above reported FY26 EPS of ₹115.89, though this includes non-recurring benefit

Management flagged a 50-80 bps margin impact from a Q3 wage hike, a direct headwind to the recently expanded 16.3% EBIT margin

₹165 crore one-time SWC divestment gain inflates reported net income growth of 66.8% YoY; core earnings trajectory is overstated by the headline

Muted Auto Europe performance persists as a demand drag in a key geographic/vertical segment

Medtech program ramp-down will reduce revenue contribution, creating a sequential headwind

Tech described as stable/muted, indicating no meaningful growth engine in that segment

$203 million TCV is a bookings figure; conversion into revenue depends on ramp timing, and a meaningful portion is AI-led, which carries execution uncertainty

DSO of 78 days is near the top of the guided 80-85 day band and any drift higher would pressure cash conversion

Over 50% of $203 million large-deal TCV is AI-led, positioning LTTS for growth in higher-value AI engineering services

$120 million annualized EI-led run-rate provides a demonstrated new-growth base that could compound as AI adoption deepens

With EBIT margin at 16.3%, up 220 bps YoY, operating leverage from AI mix and scale could offset the guided 50-80 bps wage-hike drag over time

Guided ₹20 per share interim dividend provides near-term cash return, supporting total-return thesis alongside growth

SWC divestment and Medtech ramp-down may simplify the business mix, potentially sharpening focus on higher-margin engineering services

Annualized continuing-operations EPS of ₹143.12 versus reported FY26 EPS of ₹115.89 suggests valuation support if the market looks through the one-time gain to core run-rate

DSO within guided range and stated intent to report overall DSO going forward improves transparency and could support cash-flow-based valuation

LTTS's $203 million TCV with over 50% AI-led content and a $120 million EI run-rate illustrate AI becoming the primary driver of large-deal wins in Indian engineering services, with implications for mix and pricing power

Guided 50-80 bps margin impact from a Q3 wage hike reflects a broader wage-cost pressure in Indian IT services that offsets operating leverage gains, requiring pricing or AI productivity to hold margins

The ₹165 crore SWC gain highlights how one-time divestment gains can materially inflate reported growth in Indian IT, making normalized earnings the key analytical lens for peer comparisons

DSO of 78 days within an 80-85 day guided band, plus a commitment to disclose overall DSO, reflects a broader push toward transparent working-capital reporting in Indian IT services

Muted Auto Europe and Tech alongside Medtech ramp-down contrast with AI-led wins, indicating demand is bifurcating by vertical and technology focus rather than moving uniformly

Monitor realized margin against the guided 50-80 bps headwind from the Q3 wage hike, as this will test management's margin defense [Q3 FY27]

Track conversion of the $203 million TCV and the $120 million EI run-rate into reported revenue in upcoming quarters [Next quarterly results]

Confirm the ₹20 per share interim dividend and its record date, as it provides a near-term shareholder-return catalyst [Upcoming record date]

Watch whether Auto Europe shows any sequential improvement from its muted status, a key geographic swing factor [Next quarterly results]

Quantify the revenue loss as the Medtech program winds down to gauge sequential top-line pressure [Next quarterly results]

Monitor overall DSO against the 80-85 day guidance band, as the company has committed to ongoing disclosure [Each quarter]

Strip the ₹165 crore SWC gain to track core net income growth and validate the continuing-operations EPS run-rate of ₹143.12 [Next quarterly results]