Report 13 Jan 2025

OT and Engineering Services - L&T Technology Services - Vendor Profile - Worldwide

LTTS is the largest Indian ER&D pure play, ahead of Cyient, Tata Technologies, KPIT, and Tata Elxsi. The company had FY25 (the year ending March 31, 2025) revenues of $1,259m and a headcount of 23,700 at the end of Q2 FY26. LTTS is a subsidiary of the Indian conglomerate Larsen & Toubro (L&T), which holds a 74% stake in the firm.

LTTS has a background in the engineering business of L&T, where it used to provide engineering services to the various businesses of its parent, including construction, power generation, transportation, and industrial equipment. The company initiated the expansion of its engineering capabilities and became a standalone entity within L&T, culminating in its initial public offering in 2016.

LTTS is one of India’s ER&D success stories among the pure plays. With its India-centric delivery model, the company is well-positioned to take advantage of future offshoring opportunities, led by the automotive and manufacturing sectors, especially in Europe.

Unlike respectable competitors such as KPIT and Tata Technologies, LTTS has a diversified client base that extends well beyond the automotive sector and a strong presence (a third of its revenues comes from high tech, primarily in the US but also in India). The company has systematically built its engineering capabilities, from its heritage of servicing L&T, including oil & gas, to expanding into semiconductors, automotive OEMs, communication service providers, and US high tech. LTTS has the foundations and is now deepening its expertise in its key verticals. It has indicated that its M&A priorities remain MedTech, platform engineering for ISVs and hyperscalers, as well as specialized capabilities such as ADAS in automotive. Outside of these verticals, the company has room for growth in the pharmaceutical, utilities, and aerospace sectors, as well as possibly the Indian defense sector.