L&T Technology Services

I think their ability to, to blend these two, comp- trust in terms of buil- trusted delivery, trust in terms of business confidentiality across a range of industries over the last 30 years, um, has made them the market leader.

And there are other engineering R&, R&D services companies in the country, L&T Technology Services, for instance, but this company has been the, has, uh, whilst it ha- it has had a volatile existence, it has been the, the bell- the bell mark, the, the bellwether.

It's been with the bellwether, uh, uh, E R&D business in our, in our country.

And I keep asking myself if between TCS and Tata Elxsi, had Tata Elxsi been a larger company, I think India's fate as a future as a tech economy would have been very different.

Yet currently only about 5% of this activity is outsourced compared to 46% of general IT services.

This gap represents a significant runway for Indian vendors like Tata Elxsi, L&T Technology Services, and KPIT Technologies.

However, capturing this revenue does not guarantee profit margins.

Tata Elxsi recently crossed the Rs 1,000 crore quarterly revenue mark with growth of 14.5% year-on-year.

But earnings before interest tax depreciation and amortization margins contracted 340 basis points quarter-on-quarter due to expensive subcontracting and upfront costs on new contracts.

Similarly, L&T Technology Services reported revenue growth of 11.5% yet faced slower deal wins in the first quarter of 2027.

KPIT Technologies saw net profit fall by over 32% even as revenue grew nearly 9%.

These numbers reveal a sector where top-line expansion is being challenged by pricing pressure and implementation costs.