L&T Technology Services Ltd Management Discussions

Types of Capitals:

- FC: Finance Capital

- IC: Intellectual Capital

- SRC: Social and Relationship Capital

- HC: Human Capital

- NC: Natural Capital

9. Outlook

Amidst a dynamic and evolving global business environment, LTTS continues to leverage its proven expertise in engineering and digital innovation. With India strengthening its position as a global ER&D hub, LTTS is well positioned to capitalise on expanding offshoring opportunities and rising domestic innovation-led investments.

Globally, LTTS continues to benefit from its diversified geographic presence, supported by increasing demand across from large-scale investments in energy, smart infrastructure, and industrial transformation, particularly in the United States, Europe, and Japan. The Companys growth outlook remains balanced and resilient, supported by increasing engineering intensity across industries.

The operating environment, however, remains complex. Persistent macroeconomic uncertainties, geopolitical developments, evolving regulatory frameworks, and supply chain realignments continue to influence enterprise spending and decision cycles. Additionally, rapid advancements in AI, software-defined systems, and cybersecurity are reshaping client expectations, with intensifying competition from global ER&D players and Global Capability Centers (GCCs). However, evolving talent dynamics – including wage inflation in niche digital capabilities, and skill availability– may exert near-term pressures.

LTTS global delivery model, offshore leverage, and increasing adoption of automation and AI-led engineering are expected to enhance operational efficiency and sustain its competitive edge. Pivoting on Engineering Intelligence, the Company is well positioned to capture emerging opportunities driven by the accelerating shift toward software-defined products, electrification, sustainability, and AI-led engineering.

10. Internal Control Systems and Their Adequacy

LTTS has a strong internal control framework that aligns with the Companys size, scale, and operational complexity. The organization has established comprehensive policies and procedures, automated systems, authorization protocols, access controls, segregation of duties, and physical security measures. These elements ensure compliance with the relevant statutes, protect assets from unauthorized use, and enhance overall corporate governance.

LTTS utilizes an Enterprise Resource Planning (ERP) system that provides dependable financial and operational data for accounting, consolidation, and management information purposes. The company consistently strives to align its processes and controls with global best practices.

The Company has established internal financial controls in accordance with the Companies Act, 2013. These controls are reviewed for design and operational effectiveness by an internal control team, with further validation from an independent consultant hired by the Company. Additionally, the statutory auditors conducted an independent audit of the internal financial controls over financial reporting as of March 31, 2026, and concluded that these controls were functioning effectively.

The Company has an Audit Committee within the Board of Directors, with details provided in the corporate governance report. This committee reviews audit reports submitted by the Independent Internal auditors on a quarterly basis.

11. Significant Factors Affecting Our Results of Operations

LTTS growth path is in sync with global ER&D spending patterns. Our ability to seize new opportunities in technology services offshoring and deliver solutions that cater to the ER&D requirements of customers worldwide continues to set us apart.

The Companys operational success is driven by optimizing the utilization rates of its billable workforce, securing sustainable billing rates, and effectively managing talent. At LTTS, our talent management approach includes streamlined recruitment processes, focused skill development programs, and the ongoing identification and retention of top-tier professionals.

Addressing foreign exchange fluctuation challenges is crucial for our business, as a significant portion of our revenue is derived from transactions in currencies like USD and EURO. Balancing onsite and offshore project execution is also essential, with offshore work generally yielding higher profit margins compared to onsite engagements.

On the regulatory and compliance front, LTTS reputation is founded on its commitment to safeguarding client confidentiality and intellectual property rights, as any breach could lead to significant legal consequences. Equally important is our adherence to local laws in the jurisdictions where LTTS operates, particularly regarding immigration and data protection.

Financial Performance

This part of the Management Discussion and Analysis refers to the consolidated financial statements of LTTS and its subsidiaries, referred to as the "Group." The financial statements and related notes to the consolidated accounts of LTTS for the year ended March 31, 2026 prepared in accordance with the Indian Accounting Standard (referred to as "Ind AS"), prescribed under Section 133 of the Companies Act, 2013, and read with the Companies (Indian Accounting Standard) rules as amended from time to time.

Refer to the Standalone and Consolidated financial statements in Annual Report for detailed schedules and notes.

The Company entered into a Business Transfer Agreement on March 25, 2026 to transfer Smart World and Communication (SWC) Business unit of the Company, forming part of the Tech segment by way of a sale on a going concern basis to AMI Paradigm Solutions Private Limited. Accordingly, the related assets and liabilities of the said business are classified as "Held for Sale" and profits from the said business are shown under profits from Discontinued Operations. The comparative financial results have been restated accordingly.

A. Financial Performance Highlights

Revenue Trend

Revenue from operations for the year ended March 31, 2026 increased 14.0% YoY to Rs 1,09,959 Mn from Rs 96,422 Mn for the year ended March 31, 2025, while CAGR growth over the past 5 years is 15.1%.

Revenue trend for last 5 financial years

(Rs in million)

FY2022: 65,697

FY2023: 88,155

FY2024: 96,473

FY2025: 96,422

FY2026: 1,09,959

Operating profit trend

Operating profit for the year ended March 31, 2026 increased 6.9% YoY to Rs 15,898 Mn from Rs 14,866 Mn for the year ended March 31, 2025, while CAGR growth over the past 5 years is 15.0%.

Operating profit and operating margin % trend for last 5 financial years*

(Rs in million)

FY2022: 12,005 (18.3%)

FY2023: 15,271 (17.3%)

FY2024: 16,474 (17.1%)

FY2025: 14,866 (15.4%)

FY2026: 15,898 (14.5%)

*Absolute numbers represent operating profit (in Mn). % numbers represent operating margin.

Earnings per share trend

Earnings per share (basic) for the continuing operations for the year ended March 31, 2026 increased 2.8% YoY to Rs 115.9 from Rs 112.7 for the year ended March 31, 2025, while CAGR growth over the past 5 years is 12.9%.

Earnings per share trend for last 5 financial years

(Rs / Share)

FY2022: 90.9

FY2023: 114.8

FY2024: 123.3

FY2025: 112.7

FY2026: 115.9

Free cash flow trend

Free cash flow for the year ended March 31, 2026 decreased 7.2% YoY to Rs. 12,802 Mn from Rs. 13,793 Mn for the year ended March 31, 2025 on account of increase in investments in technology and capacity expansion.

Free cash flow and its % to net income trend for last 5 financial years*

(Rs in million)

FY2022: 8,507 (89%)

FY2023: 11,343 (94%)

FY2024: 12,509 (96%)

FY2025: 13,793 (109%)

FY2026: 12,802 (100%)

*Absolute numbers represent free cash flow (in Mn). % represent free cash flow as a % of net income.

B. Financial Condition

1. Share Capital

(Rs Million)

The authorized share capital of the Company as at March 31, 2026 was Rs 10,571 Million divided into 5,285 Million equity shares of Rs 2 each. The issued, subscribed and paid-up capital as at March 31, 2026 was Rs 212 Million divided into 106.0 Million equity shares of Rs 2 each. (As at March 31, 2025: Rs 212 Million divided into 105.9 Million equity shares of Rs 2 each).

There were no changes in the authorized share capital during the year.

2. Other Equity (excl. non-controlling interest)

The other equity of the company as at March 31, 2026 stood at Rs 64,515 Million as against Rs 60,588 Million as at March 31, 2025. Breakup of other equity is as below: -

(Rs Million)

Retained Earnings

The retained earnings of the company as at March 31, 2026 stood at Rs 58,969 Million as against Rs 52,112 Million as at March 31, 2025. Movement in retained earnings was primarily on account of profit earned during the year offset by dividends declared.

Securities Premium

The securities premium balance as at March 31, 2026 stood at Rs 12,762 Million as against Rs 12,291 Million as at March 31, 2025. Increase in securities premium is mainly on account of exercise of ESOPs.

Hedging Reserve

Hedging reserve relates to financial derivatives used for risk management strategy of the company.

The balance in hedge reserve (net of tax effect) as at March 31, 2026 is debit balance of Rs 3,984 Million as against the credit balance of Rs 596 Million as at March 31, 2025.

Foreign currency translation reserve

The foreign exchange differences arise from the translation of financial statements of foreign operations with functional currency other than Indian rupees.

The foreign currency translation reserve balance as at March 31, 2026 stood at Rs 1,925 Million as against Rs 548 Million as at March 31, 2025.

Employee share options outstanding (Net of deferred compensation)

The amount of stock option outstanding as at March 31, 2026 stood at Rs 611 Million as against Rs 917 Million as on March 31, 2025. It represents cumulative expense to be recognized until the employee share options are vested/expired upon which such amount is transferred to profit and loss.

Other items of other comprehensive income

The amount of other items of other comprehensive income as at March 31, 2026 is debit balance of Rs 195 Million as against a debit balance of Rs 293 Million as on March 31, 2025. It represents movement due to remeasurements of defined benefit plans (net of tax effect) based on actuarial valuation.

Capital Reserve

The amount of Capital Reserve as at March 31, 2026 is debit balance Rs 5,583 Million as against a debit balance of Rs 5,583 Million as on March 31, 2025. It represents Capital reserves generated from Common control Business combination towards acquisition of Smart World & Communication.

Debt Instruments through Other Comprehensive Income

The amount of Debt Instruments through Other Comprehensive Income as at March 31, 2026 is credit balance Rs 10 Million as against Nil value as on March 31, 2025.

3. Non-Current financial Liabilities

Non-Current financial liabilities as at March 31, 2026 stood at Rs 7,393 Million as against Rs 4,583 Million as at March 31, 2025. It mainly includes below:

Lease Liabilities

Lease liability as at March 31, 2026 stood at Rs 4,092 Million as against Rs 4,423 Million as at March 31, 2025. Decrease in lease liability is mainly on account of conversion of non-current liability into current liability.

Other Financial Liabilities

Other Financial Liabilities as at March 31, 2026 stood at Rs 3,301 Million as against Rs 160 Million as at March 31, 2025. Increase in other financial liability is on account of derivative financial instruments.

4. Deferred tax liabilities

Deferred tax liability as at March 31,2026 stood at Rs 1 Million as against Rs 758 Million as at March 31, 2025. Decrease in deferred tax liability is mainly on account of deferred tax asset creation on hedge losses.

5. Non-current Provisions

Provisions as at March 31, 2026 stood at Rs 217 Million as against Rs 219 Million as at March 31, 2025. It includes provisions pertaining to post-retirement medical benefits & Gratuity.

6. Current Financial Liabilities

Current financial liabilities as at March 31, 2026 stood at Rs 16,990 Million as against Rs 21,484 Million as at March 31, 2025. It mainly includes below:

(Rs Million)

Trade Payables

Payables to micro and small enterprises as at March 31, 2026 stood at Rs 232 Million as against Rs 250 Million as at March 31, 2025.

Payables to others as at March 31, 2026 stood at Rs 9,136 Million as against Rs 15,973 Million as at March 31, 2025. It also includes payable to related parties. Decrease in trade payables is mainly on account of held for sale classification of Trade payables of SWC business.

Lease Liabilities

Lease liability as at March 31, 2026 stood at Rs 1,693 Million as against Rs 1,353 Million as at March 31, 2025. Increase in lease liability is on account of Net increase in Lease premises offset by rent payouts.

Other financial liabilities

Other financial liabilities as at March 31, 2026 stood at Rs 5,929 Million as against Rs 3,908 Million as at March 31, 2025. It mainly includes liability towards employee benefit expenses, derivative financial instruments, capital creditors etc. The increase in liability is majorly on account of Derivative financial instruments.

7. Other Current Liabilities

Other current liabilities as at March 31, 2026 stood at Rs 5,194 Million as against Rs 5,493 Million as at March 31, 2025. It mainly includes unearned revenue, liability towards employee car scheme etc.

8. Current Provisions

Provisions as at March 31, 2026 stood at Rs 2,451 Million as against Rs 1,999 Million as at March 31, 2025. It mainly includes provisions pertaining to employee benefits such as post-retirement medical benefits, gratuity.

9. Current tax liabilities

Current tax liabilities as at March 31, 2026, stood at Rs 1,080 Million as against Rs 924 Million as at March 31, 2025.

10. Non-current assets (other than non-current financial assets and deferred tax assets)

The Non-current assets (other than non-current financial assets and deferred tax assets) as at March 31, 2026 stood at Rs 22,620 Million as against Rs 22,729 Million as at March 31, 2025. It mainly includes below:

(Rs Million)

Property, plant, and equipment

The gross block of Property, Plant, and equipment as at March 31, 2026 stood at Rs 8,655 Million as against Rs 8,714 Million as at March 31, 2025.

Addition

Additions during the year ended March 31, 2026 stood at Rs 1,437 Million, mainly comprising of Rs 715 Million towards computers, Rs 42 Million towards laboratory equipment, Rs 354 Million towards office and other equipment, Rs 95 Million towards vehicles and Rs 231 Million towards leasehold improvements. Disposals during the year ended March 31, 2026 stood at Rs 1,363 Million.

Right of use assets

The gross block of Right of use assets as at March 31, 2026 stood at Rs 8,963 Million as against Rs 8,491 Million as at March 31, 2025.

Capital work in progress (Capital WIP)

Capital WIP as at March 31, 2026 stood at Rs 117 Million as against Rs 280 Million as at March 31, 2025. It mainly includes work in progress pertaining to infrastructure facilities.

Goodwill

The carrying value of goodwill as at March 31, 2026 stood at Rs 12,029 Million as against Rs 11,327 Million as at March 31, 2025. Increase in carrying value of goodwill is mainly due to foreign currency fluctuations.

Other intangible assets

The gross block of other intangible assets as at March 31, 2026 stood at Rs 5,793 Million as against Rs 6,583 Million as at March 31, 2025. It mainly includes specialized software, technical know-how, tradename etc.

11. Non-current financial assets

Non-current financial assets as at March 31, 2026 stood at Rs 5,609 Million as against Rs 6,008 Million as at March 31, 2025. It mainly includes below:

Non-current financial assets: Investments

Non-current investments as at March 31, 2026 stood at Rs 4,679 Million as against Rs 3,493 Million as at March 31, 2025. The increase is mainly on account of investment in non-convertible debentures, corporate deposits InvITs & REITs.

Non-current financial assets: Others

Other non-current financial assets as at March 31, 2026 stood at Rs 930 Million as against Rs 2,515 Million as at March 31, 2025. It mainly includes security deposits, fixed deposits with maturity more than 12 months and non-current derivative financial instruments. Decrease is mainly on account of fixed deposits.

12. Other Non-current Assets

Other non-current assets as at March 31, 2026 stood at Rs 2,089 Million as against Rs 2,893 Million as at March 31, 2025. It mainly includes prepaid expenses and income tax receivables. Decrease is mainly on account of prepaid expense during the period as previously recorded advance payments were utilized.

13. Current financial assets

Current financial assets as at March 31, 2026 stood at Rs 53,829 Million as against Rs 52,173 Million as at March 31, 2025. It mainly includes below:

(Rs Million)

Investments

To achieve the goal of capital preservation, liquidity and optimization of returns, the Company makes investments after considering counterparty risks based on multiple criteria including Tier I capital, capital adequacy ratio, credit rating, profitability, NPA levels and deposit base of banks and financial institutions.

Investments as at March 31, 2026 stood at Rs 14,286 Million as against Rs 9,603 Million as at March 31, 2025. It mainly comprises of investment which are measured at fair value thru profit and loss (FVTPL) i.e., mutual funds, fair value thru Other comprehensive Income (FVOCI) i.e. Investment in G-sec and investment measured at amortised cost i.e., corporate deposits, non-convertible debentures, commercial papers, and certificate of deposits.

Trade Receivables

Trade receivables (net of allowance for doubtful debts) as at March 31, 2026 stood at Rs 20,146 Million as against Rs 25,126 Million as at March 31, 2025.

Allowance for doubtful debts as at March 31, 2026 stood at Rs 711 Million as against Rs 189 Million as at March 31, 2025.

The days sales outstanding stood at 83 days as at March 31, 2026 as compared to 86 days as at March 31, 2025.

Cash and Cash equivalents

Cash and cash equivalents as at March 31, 2026 stood at Rs 16,497 Million as against Rs 13,831 Million as at March 31, 2025. It mainly includes bank balances maintained in Indian and foreign bank accounts, fixed deposits with maturity less than 3 months, remittance in transit, cheques on hand, TREPS with original maturity less than 3 months and Certificate of Deposit with maturity less than 3 months. Increase in cash and cash equivalents is on account of balances with bank & remittance in transit.

Other Bank balances

Other bank balances as at March 31, 2026 stood at Rs 8 Million as against Rs 1,827 Million as at March 31, 2025. It mainly includes fixed deposits having maturity more than 3 months but less than 12 months and earmarked balances with banks pertaining to unclaimed dividends.

Decrease in other bank balances is on account of fixed deposits having maturity less than 3 months.

Other Financial Assets

Other financial assets as at March 31, 2026 stood at Rs 2,892 Million as against Rs 1,786 Million as at March 31, 2025. It mainly includes unbilled revenue (pertaining to time and material contracts), derivative financial instruments, advance to employee, security deposits, loans and advances to related parties etc.

The increase is mainly on account of unbilled revenue which moved from Rs 865 Million as at March 31, 2025 to Rs 1880 Million as at March 31, 2026.

14. Other Current Assets

Other current assets as at March 31, 2026 stood at Rs 9,906 Million as against Rs 12,429 Million as at March 31, 2025. Other current assets mainly consist of advance to suppliers, GST receivable, unbilled revenue (fixed price contracts), contract assets, prepaid expenses etc. The decrease is mainly on account of unbilled revenue and contract assets which moved from Rs 9,126 Million as at March 31, 2025 to Rs 6,735 Million as at March 31, 2026 towards held for sale classification of SWC Business.

15. Deferred tax assets/liabilities (DTA/DTL)

(Rs Million)

Deferred tax assets (DTA) as at March 31, 2026 stood at Rs 907 Million as against Rs 164 Million as at March 31, 2025. Increase in DTA is due to creation of DTA on Hedge Losses.

Deferred tax liability (DTL) as at March 31, 2026 stood at Rs 1 Million as against Rs 758 Million as at March 31, 2025. The movement reflects changes in temporary differences during the year, including hedge-related fair value movements.

16. Inventories

Inventories as at March 31, 2026 stood at Rs 58 Million as against less than Rs 39 Million as at March 31, 2025.

C. Operational Analysis

Financial Performance

(Rs Million)

Revenue from Operations

Our Revenues from operations increased by 14.0% to Rs 1,09,959 Million for the year ended March 31, 2026 from Rs 96,422 Million for the year ended March 31, 2025.

Revenue growth in reported terms includes impact of currency fluctuations. We, therefore, additionally report the revenue growth in constant currency terms, which represents the real growth in revenue excluding the impact of currency fluctuations. In USD terms, our revenue from operations increased by 8.3% to $1,233 Million for the year ended March 31, 2026 from $1,138 Million for the year ended March 31, 2025. Our revenue from operations for fiscal 2026 in constant currency grew by 7.7%.

In terms of project type, revenue from time and material contracts (as a % of total revenue) for the period ended March 31, 2026 stood at 66.2 % as against 67.6% for the year ended March 31, 2025 and revenue from fixed price contracts (as a % of total revenue) for the period ended March 31, 2026 stood at 33.8% as against 32.4% for the year ended March 31, 2025.

Revenue from top 5 customers for the year ended March 31, 2026 stood at 16.7% (16.1% for the year ended March 31, 2025).

Refer "Segment Reporting" section of MD&A for more details on the analysis of segment revenues and profitability.

Employee Benefit expenses

Employee benefit expenses for the year ended March 31, 2026 stood at Rs 64,574 Million (representing 58.7% of revenue from operations for such year) as against Rs 55,923 Million (representing 58.0% of revenue from operations for such year) for the year ended March 31, 2025. It mainly includes salaries (including overseas staff expenses), share based payment, staff welfare, contribution to provident fund and gratuity fund.

The increase is due to the full-year impact of employee costs relating to the Intelliswift business in FY 2026, compared with a partial-year impact in FY 2025 following its acquisition on January 3, 2025 with decrease in headcount to 23,830 as at March 31, 2026 end from 23,958 as at March 31, 2025 end.

Operating Expenses

Other operating expenses for the year ended March 31, 2026 stood at Rs 26,035 Million (representing 23.7% of revenue from operations for such year) as against Rs 22,602 Million (representing 23.4% of revenue from operations for such year) for the year ended March 31, 2025. It mainly includes subcontracting and component, engineering and technical consultancy fees, cost of computer software, rent and establishment expenses, travelling expenses, legal and professional charges, overheads charges and miscellaneous expenses.

The increase in cost is majorly on account of increase in subcontracting and component, engineering and technical consultancy fees, travelling expenses, advertisement and sales promotion in line with business growth.

Depreciation and amortization expenses

Depreciation and amortization expenses for the year ended March 31, 2026 stood at Rs 3,452 Million (representing 3.1% of revenue from operations for such year) as against Rs 3,031 Million (representing 3.1% of revenue from operations for such year) for the year ended March 31, 2025.

Out of total expense, expense pertaining to depreciation on right of use assets (as per IND AS 116 accounting) for the year ended March 31, 2026 stood at Rs 1,647 Million as against Rs 1,499 Million for the year ended March 31, 2025.

Other Income

Other income for the year ended March 31, 2026 stood at Rs 2,212 Million as against Rs 2,093 Million for the year ended March 31, 2025. It mainly includes below:

(Rs Million)

*Interest income includes interest earned and accrued interest on account of investment in various instruments such as commercial paper, fixed deposits, Non convertible debentures, certificate of deposits, Invits and REITs etc.

The increase in other income is on account of increase in interest income due to investment of surplus cash, offset by reduced gains due to currency movements.

Finance costs

Finance costs for the year ended March 31, 2026 stood at Rs 641 Million as against Rs 565 Million for the year ended March 31, 2025. It mainly includes interest on bill discounting and interest on lease liability accounted as per IND AS 116.

Tax expenses

Tax expenses comprise of current tax and deferred tax.

Current tax expenses for the year ended March 31, 2026 stood at Rs 4,374 Million as against Rs 4,480 Million for the year ended March 31, 2025.

Deferred tax expenses for the year ended March 31, 2026 stood at Rs 71 Million as against credit of Rs 15 Million for the year ended March 31, 2025.

(Rs Million)

Current income tax is the amount expected to be paid to the tax authorities in accordance with the applicable tax laws in relevant jurisdictions. Deferred income tax reflect the impact of timing differences between taxable income and accounting income.

Profit attributable to equity shareholders

Profit attributable to equity shareholders for the year ended March 31, 2026 stood at Rs 12,792 Million as against Rs 12,667 Million for the year ended March 31, 2025. Increase in profit attributable to equity shareholders is in line with revenue growth.

Earnings per share

Earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average numbers of equity shares outstanding during the period.

Basic EPS for continuing operations has increased by 2.8% to Rs 115.9 per share for the year ended March 31, 2026 from Rs 112.7 per share for the year ended March 31, 2025.

Diluted EPS for continuing operations has increased by 2.8% to Rs 115.7 per share for the year ended March 31, 2026 from Rs 112.5 per share for the year ended March 31, 2025.

D. Cash flows and dividend

Cash Flow

Summary of cash flow statement is as under:

(Rs Million)

Net cash flow (used in)/from operating activities

For period ended March 31, 2026, net cash flow from operating activities stood at Rs 14,551, consisting of profit before tax of Rs 17,441 Million, adjusted for depreciation and amortization, interest income, finance cost, investment income, bad debts, employee stock option cost etc. of Rs 1,944 Million and cash used in net working capital of Rs 721 Million and cash used to pay taxes (net of refund), which was Rs 4,113 Million.

For period ended March 31, 2025, net cash flow from operating activities stood at Rs 14,811 Million as at the year ended March 31, 2025, consisting of profit before tax of Rs 17,407 Million, adjusted for depreciation and amortization, interest income, finance cost, investment income, bad debts, employee stock option cost etc. of Rs 2,555 Million and cash used in net working capital of Rs 223 Million and cash used to pay taxes (net of refund), which was Rs 4928 Million.

Net cash flow (used in)/from investing activities

For period ended March 31, 2026, net cash used in investing activities stood at Rs 4,428 Million.

This primarily includes net cash through current/non-current investments which includes mutual funds, certificate of deposits, commercial papers etc. of Rs 4,102 Million, net purchase of property, plant, equipment, and intangibles of Rs 1,749 Million, deposits matured/having maturity less than 3 months of Rs 1,678 Million, Rs 1410 Million payout towards consideration for acquisition of Intelliswift, and income received from investments including interest income of Rs 1,155 Million.

For period ended March 31, 2025, net cash used in investing activities stood at Rs 5,094 Million. This primarily includes net increase in current/non-current investments which includes mutual funds, certificate of deposits, commercial papers etc. of Rs 1,025 Million, net purchase of property, plant, equipment, and intangibles of Rs 1,018 Million, deposits matured/having maturity less than 3 months of Rs 883 Million, Rs 7,364 Million payout towards consideration for acquisition of Intelliswift, Rs 266 Million for Cash and cash equivalents acquired pursuant to acquisition of subsidiaries and income received from investments including interest income of Rs 1,114 Million.

Net cash flow (used in)/from financing activities

For period ended March 31, 2026, net cash used in financing activities stood at Rs 7,995 Million. This primarily includes dividend payments of Rs 5,928 Million, payment pertaining to lease liability of Rs 1,425 Million and interest payments (including interest on lease liability) of Rs 642 Million.

For period ended March 31, 2025, net cash used in financing activities stood at Rs 7,182 Million. This primarily includes dividend payments of Rs 5,292 Million, payment pertaining to lease liability of Rs 1,325 Million and interest payments (including interest on lease liability) of Rs 565 Million.

Dividend

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable withholding income taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

The Board of Directors of the Company has recommended the final dividend of Rs 40 per equity share for the year ended March 31, 2026 (Previous Year Rs 38 per equity share), subject to approval by the shareholders at the forthcoming annual general meeting. The total final dividend payment is expected to be Rs 4,240 Million.

For the year ended March 31, 2026, Dividend per share for the year was Rs 58 which includes interim dividend of Rs 18 and recommended final dividend of Rs 40. This translates to a dividend payout of 48.0% for year ended March 31, 2026.

For the year ended March 31, 2025, Dividend per share for the year was Rs 55 which includes interim dividend of Rs 17 and final dividend of Rs 38. This translates to a dividend payout of 46.0% for year ended March 31, 2025.

E. Key Financial Ratios (Consolidated)

(Rs Million)

Note: Certain Ratios for the financial year ended March 31, 2026 have been computed based on numbers for Continuing Operations pursuant to signing of definitive agreement for sale of SWC Business.

Explanations for changes in ratios:

1. Days Sales Outstanding for the year ended March 31, 2026 went down to 83 days as compared to 86 days for the year March 31, 2025, on account of a decrease in trade receivables to Rs 20,146 Million as at March 31, 2026, compared to Rs 25,126 Million as at March 31, 2025.

2. Interest Coverage ratio & Debt Equity ratio are not relevant metrics for the Company as it does not have any debt.

3. Current Ratio increased to 2.5 in FY 2026 compared to 2.2 in FY 2025.

4. Operating margin was 14.5% in FY 2026 compared to 15.4% in FY 2025, reflecting the integration impact of Intelliswift, acquired in the last quarter of FY 2025, as well as macro headwinds early in the year that required increased support for select strategic customers.

5. The net profit margin was 11.7% in FY 2026 compared to 13.1% in FY 2025, reflecting the impact of one-time exceptional items related to the new wage code and restructuring costs incurred to align the business with the Lakshya 31 plan.

6. Return on Net Worth for the year ended March 31, 2026 was 20.4%.

F. Segment Reporting (Consolidated)

Our segmental reporting comprises business and geographic segmentation.

Business Segmentation

LTTS operates in three industry segments namely Mobility, Sustainability and Tech

Graphical representation of reportable segments contribution to revenue is as under:

Revenue Contribution by Segments

(Rs in million)

Mobility

Mobility segment is third largest segment by revenue and contributed 31.9% of the companys total revenue in FY 2026 vs 36.4% of the total revenue in FY 2025. Mobility revenue remained largely flat in FY2026

Sustainability

Sustainability segment is the largest segment. The segment has contributed 34.8% of the companys total revenue in FY 2026 vs 33.4% of the total revenue in FY 2025. Sustainability revenue grew by 19.0% in FY 2026.

Tech

The Tech segment is the second largest segment and contributed 33.3% of the companys total revenue in FY 2026 vs 30.3% of the total revenue in FY 2025. The segment revenue has increased by 25.5% in FY 2026.

The following table shows a breakdown of our revenue by our business segments for the periods indicated:

Further, the segment wise operating profits as a percentage to respective segment revenue has been depicted below for the periods indicated:

Segmental Operating Profit Margins

(%)

Geographical Segmentation

We present our revenues by client billed location, irrespective of the location of the headquarters of the client or the location of the delivery centre where the work is performed.

North America continued to dominate by contributing 59.7% of the total revenue. Contribution from Europe was 18.6%, from India it was 13.9% while Rest of the World contributed 7.8% of total revenue.

Graphical representation of revenue contribution from geographies is as under:

(Rs in million)