L&T Tech shares rally 6% as Q1 profit rises; brokerages revise targets
Strong Q1 performance and broker reports drive investor confidence.
1L&T Tech delivers strong Q1 performance
L&T Technology Services reported a 13% YoY increase in consolidated net profit to ₹356.6 crore in Q1 FY27. Revenue also grew by 11.5% to ₹2,940.1 crore. These results led to a 6% surge in the company's shares.
2Nomura and Nuvama update target prices
Nomura raised its target price for L&T Tech to ₹3,180, citing higher-than-expected EBIT margins. Nuvama acknowledged the company's Q1 performance but lowered its target price to ₹3,500. Both brokerages highlighted the firm's long-term potential.
3Sustainability and mobility drive growth
L&T Tech's sustainability and mobility verticals contributed significantly to revenue growth, with sustainability growing 4.3% QoQ and mobility rising 2.3%. However, the tech vertical saw a 3.1% decline.
4AI investments provide competitive edge
L&T Tech stated that its early investments in AI have given it a 6-9 month lead over competitors in Engineering Intelligence (EI). The company aims to increase its market share in this domain.
5Motilal Oswal: Recovery in early stages
Motilal Oswal noted that while L&T Tech's management is optimistic about growth, recovery is still in its early stages. Demand in the US has improved, but the European automotive sector remains weak.
6Long-term performance under scrutiny
L&T Tech shares gained 5% over the past week but have delivered negative returns in the long term. The company's market capitalization reached ₹34,900 crore. Investors are closely watching its performance in upcoming quarters.