Citi has reiterated a ‘Sell’ rating on L&T Technology Services with a target price of ₹4,015, citing weaker-than-expected Q1 performance. The firm’s revenue declined more than anticipated, and while EBIT margins were in line, the topline contraction raised questions around growth visibility.
LTTS’ Q1FY26 revenue declined 4.2% QoQ in constant currency terms, and headcount also fell 2.6% sequentially. Although management reaffirmed its double-digit growth guidance based on a strong deal pipeline, Citi remains skeptical. The brokerage pointed out that while management expects a better H2FY26, the near-term remains challenging given recent performance and hiring trends.
Citi forecasts a muted FY26 for LTTS and believes the stock could remain under pressure unless there’s a faster turnaround in revenue growth.
