LTTS crosses ₹10,000 crore in annual revenue, eyes double-digit growth in FY26, says CEO

What were some key highlights during the quarter?

We saw some milestones — patent filings crossed 1,500 this quarter, 190 of which were in AI and Gen AI. We grew about 10.7 per cent quarter on quarter and came in at about 9 per cent constant currency (CC). We also crossed about ₹10,000 crores in annualized revenue or a $1.4 billion run rate. From a deal standpoint, we won seven large deals, and large deal TCV went up by 20 per cent q-o-q . For the whole year, we signed 32 $10 million plus deals. We think fiscal FY26 will be better than FY25, and we will see double-digit growth.  

Despite macroeconomic uncertainties, you have been able to win large deals. What would you attribute this momentum to?

We saw clients getting skittish and so spent time and money rejigging our service offerings. We went to the market with new automated AI-based service offerings, which helped us capture market share over our competitors. In 70 per cent of these deals, we took somebody else out. We are also beginning to close deals in the sustainability industrial sub-segment, our most profitable segment. I do believe this momentum will continue and as we go into next year, we are committing to double-digit growth and are reconfirming $2 billion in revenue in the medium term.  

What are some client conversations around the potential impact of tariffs on their tech spending budgets?

We maintain our previous quarter commentary that the automotive segment will continue to face some headwinds over the next three to four quarters. Our mobility has flatlined because we do work in Trucks and Off-Highway Machines (TNOH) and Aero as well. But we think we’ll grow from here. Having said that, there are five areas people continue to spend on — AI, agentic AI, bimodal AI, data, and cyber. Second, we’ve been able to fall on the right side of the vendor consolidations we played at. And third, we are seeing factory supply chains being reset. Technology spending areas are shifting and people are investing in different things. If you do not invest between 3-5 per cent of your revenues into R&D, you will face challenges. That’s why, in H1, we made a conscious effort, hit our chin, and went into it.  

Are you seeing any green shoots or tailwinds amidst the ambiguity?

We are seeing green shoots in sustainability, plant engineering, tech, software and platforms, and sustainability. Our clients continue to engage us. Our large deal inflow has been 20 per cent higher and our pipeline is bigger than last quarter’s.

What strategy are you employing to navigate the unpredictability in the US, which is your biggest market?  

We are doing three or five things. I am heading a central task force within the company where we see all the different areas where we can help our clients. We are reimagining our offering stack further to see if can we help with line plant transfers, vendor consolidation, OT managed services, China plus one strategy, and asset management. We have brought two levels in the organization down where we flattened our organization and moved to a role-based structure effective April 1. This allows us to be more agile. We are also working on getting in 2500 freshers this year to improve our pyramid.  

Amid fear of job displacement due to AI, do you see consistent talent addition?  

In FY25, we onboarded 1500 freshers. For FY26, we are looking at 2500. We require an additional headcount to achieve our double-digit growth target. I believe AI innovation will help our employees rather than displacing jobs.  

Several of your peers believe that despite concerns about GCCs potentially disrupting the IT services industry, the relationship will evolve into a more symbiotic one.

Absolutely. About a year and a half ago, we recruited a former head of GCC of an industrial company. Now, we have elevated her to the leadership council of a 20-member team focused on GCCs in India, effective April 1. We work in collaboration, always.