L&T Technology Services Share Price Target Raised To Rs 4,750 by Emkay – Should You Buy, Sell or Hold?

Emkay Global Financial Services has maintained its 'Add' rating on L&T Technology Services (LTTS), with a revised target price (TP) of Rs 4,750, indicating an upside from the current market price of Rs 4,307. This revision reflects Emkay’s moderate optimism around LTTS’s growth trajectory in FY26, supported by a resilient deal pipeline and focus on high-growth segments like sustainability, Medtech, and industrial engineering.

Demand Environment Stable but Cautiously Optimistic
“We interacted with the management of LTTS to assess the demand environment and growth outlook,” Emkay noted in its latest report. It observed that demand trends have remained largely stable since the end of Q4, although ongoing macro and tariff-related uncertainties continue to weigh on decision-making timelines.

Nevertheless, LTTS expects better revenue growth in FY26 compared to FY25, driven by a strong pipeline and organic business momentum.

Q1 to See Seasonal Dip, But Long-Term Growth Intact
SWC seasonality is expected to impact sequential growth in Q1, though LTTS forecasts that the QoQ revenue decline will be lower than last year’s. Segments such as sustainability and plant engineering are set to drive growth.

A strong demand in oil & gas and CPG sectors, aided by capex and digital modernization, are tailwinds. In the Tech segment, the company expects Medtech and software platforms to lead growth, despite continued sluggishness in telecom.

EBIT Margin Targets: Eyeing Mid-16% by FY28
While EBIT margins were under pressure in Q4 due to investments and the Intelliswift acquisition, LTTS aims to achieve mid-16% EBIT margins by Q1FY28. Key margin levers include:
Annual addition of 2,000–3,000 freshers
Increasing offshore revenue share by 300–500 bps
Optimizing G&A spend
Scaling AI and proprietary solution offerings

"The management has given guidance for double-digit constant currency revenue growth in FY26 on overall basis,” the report said.

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Focus on Scaling Acquisitions and Margin Expansion
LTTS also emphasised its continued focus on M&A. It plans to enhance capabilities in Mobility (SDV, ADAS, Connected solutions) and Medtech (connected healthcare, analytics) through acquisitions in the USD 50–150 million range. The company aims to improve Intelliswift's current EBITDAM of ~8% to ~12% over the next 2–3 years.
Outlook: FY26 Growth Looks Promising

While Emkay trimmed its FY26-27 EPS estimates by around 3% owing to a subdued near-term demand environment, it remains positive on LTTS’s long-term prospects.  We retain ADD, while rolling forward our TP to Jun-26E and maintaining it at ₹4,750, at 28x Jun-27E EPS, report concluded.

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