The automotive industry, long a driver of growth for Indian engineering firms, is showing signs of idling as multinational clients delay projects and new business takes the slow lane. L&T Technology Services (LTTS), a leading engineering services provider, is feeling these effects sharply in its flagship mobility segment—even as it posts strong overall numbers and reaffirms confidence in a turnaround.
For L&T Technology, the latest quarter held a familiar refrain in the company’s auto-related business: muted growth and program delays. "A short-term pause in some programs and delayed starts in others. We expect these dynamics to keep Automotive muted in the short term for another couple of quarters with growth returning after that" Amit Chadha, CEO & MD, L&T Technology Services candidly stated during Q1 FY26 earnings conference call, echoing the cautious tone felt across the sector.
The revenue during the same period stood at Rs 28,66 crore, a growth of 16.4% YoY. The USD revenue stood at $335.3 million; growth of 13.6% YoY. The net profit on the other hand was Rs 315.7 crore, a growth of 0.7% YoY.
L&T Technology Services reported 29.6% of its total revenue during Q1FY26 came from the mobility segment, translating into a 4.4% drop YoY. The mobility segment includes automotive, aerospace, railways, commercial and recreational vehicles , and off-highway vehicles.
With the global mobility sector facing disruptions from electrification trends, supply chain reshuffles, and a softening macroeconomic environment, even leading Indian vendors are feeling the pinch.
The company management, ffering insight into the evolving situation in the automotive space, highlighted that China's alternative low-cost innovation and technology stacks in BEV, hybrid and ICE segments are creating disruptions to existing industry causing further challenges to established global players.
Secondly, there is continued demand by consumers to get more SDV features, which with high cost of ER&D OEMs in the U.S. and Europe is becoming slightly difficult.
L&T highlighted that, with its investment in building solutions like LTTS iDriVe and stacks for EV and hybrid, coupled with the offshore delivery model, is helping to provide a lower cost model as compared to a completely onsite model. This has helped the company winnew programs, the officials added.