HSBC has retained its ‘Hold’ rating on LTTS and assigned a target price of ₹4,790. The brokerage said Q1FY26 results missed both revenue and margin expectations and noted that Q2 may remain weak as well.
HSBC believes the second half of the fiscal could see stronger performance as recent deal wins start converting into revenues. Among LTTS’ verticals, it expects continued momentum in sustainability-related engineering services, moderate improvement in technology, and some struggle in the mobility segment in the near term.
Despite near-term challenges, HSBC said LTTS continues to have one of the best engineering R&D capabilities in the sector. However, organic growth still lags peers in the short run, leading the firm to adopt a cautious stance.
