The first question comes from the line of Yogesh Aggarwal from HSBC.

Just couple of questions. Firstly, a few clarifications. Sorry if I have missed. So, in the quarter, you added $33 million incremental revenues. How much was from Intelliswift?

What's your second question? We'll answer it together.

Okay. The second, Amit is that I mean it's related to the margin impact itself because it looks like the 150 bps was if the full quarter integration was there. Just to clarify on that. The other thing is on the guidance of double-digit growth in next year. Does that include Intelliswift as well because that would mean that 7% - 8% growth would come from there itself? So that's the question.

Yogesh, this is Rajeev here. Let me take the first 2 questions and I'll request Amit to take the question on guidance. So , your question was the increase, how much of that really is coming from Intelliswift, right? So , we did clarify in our Q3 commentary that Intelliswift is an annualized business of $100 million. Of course we continue to work towards growing that business. So hopefully, that answers the question. We are not splitting the revenues between LTTS and Intelliswift. We report that as consolidated.

Yes. You are seeing the full quarter include Intelliswift barring a few days. Technically, the conclusion of the transaction happened on January 3 rd, 2025. We played out the full quarter if you may see. Second, in terms of margin dilution. Yes, I did call it out in the Q3 commentary as well. We saw roughly about 150 bps of margin dilution on account of Intelliswift consolidation. Having said that, we are working actively on the integration plan and expect to see synergies both in terms of revenue and cost play out in the next following quarters.

Now in terms of growth, yes, we have called out double-digit and we do still believe that with the storm coming or with the storm ongoing, the world has stopped giving guidance and saying where they will go, and it seems to be misty. But having said that, with the backlog of deals that we have got; in addition to that, the strong deals win we have had in the last 2 quarters; we believe double-digit growth is assured. Now where will that double digit fall is something to be seen. It's not 10%, it's definitely greater than that, but where will it be? We will talk about it as we progress. And yes, a part of that will come from Intelli swift and a part of that will come from others.

Right. Sorry, just clarification. Since Rajeev said the full quarter was integrated, were you a bit disappointed with the fourth quarter organic growth? I think you did mention some few deals got pushed down. So, is that impacted? Because I think we were expecting a bit better growth in organic terms for the fourth quarter.

Yes. Like I said that in Q4 there were, I'll quote again, few large deals. One saw a delay in ramp- ups and signing of deals were deferred to the end of the quarter. Second in order to support select strategic customers, some of our proprietary solutions and niche work was done on an investment basis rather than on a chargeable basis to the customer in order to create good relationships and get larger access to bigger deals in the future. I hope that answers your question.

The next question comes from the line of Karan Uppal from Phillip Capital India.

Just the question is on next quarter. So, in FY25, we saw SWC seasonality leading to a weaker Q1FY25, so revenue declined 3%. So, are you expecting in FY26 also the quantum to be similar and then the growth to pick up in rest of the year? That's the first question.

Karan, what's your second question? I'll answer it together.

Second question is to Rajeev. So , Rajeev, Tech margins have come up significantly. You explained that it's because of Intelliswift integration. So , should we assume this to be the base for Tech vertical margins? And any color in terms of segmental margins, how those will evolve in FY26? That would be helpful.

Sure. So let me take the first one, Karan. It's a very good question. Karan, I can confirm we don't want to give QoQ guidance like some peer companies do. But I want to give you indicatively at this stage, Sustainability will definitely grow QoQ. Software and platforms and which includes organic plus inorganic from Intelliswift will grow QoQ. MedTech will grow QoQ. Mobility I think will grow as well as it looks right now. The seasonality of Smart World is there, but we are trying to beat it if we can. Let's see as the quarter goes, how it comes along. It will not be as bad as it was last year. We are trying to minimi ze it, but that is where I will stop. The quarter to be played out, a lot of work to be done. Rajeev, you want to answer on margins.

Sure. Karan, as far as the margin, I think first, like I've highlighted, right, and of course I think you read that; the Tech margins had the impact of Intelliswift acquisition roughly about 150 bps. Second, it also had the cyclical growth of Smart World. Now to answer further to your question in terms of where I see the baseline in terms of the EBITDA margins for each of the segments, I would request that we kind of wait for about a quarter as things are settling down. We called out a few headwinds. One, of course, that there were a few large deals that we anticipated to start early in the quarter, but it kind of got deferred towards latter part of the quarter. Second, we are continuing to support some of our strategic customers. While we're quoting that as investments, we believe that will strengthen our relationships to have even larger deals from those customers. So, allow us a quarter till we continue to clarify and see some of this evolve there.

Okay. Thanks for the answers and all the best.

Thank you. The next question comes from the line of Bhavik Mehta from JPMorgan. Please go ahead.

So, couple of questions. Firstly, on all these large deals which we have been winning in 3Q and 4Q, how should we think about the ramp -up of those deals over the next couple of quarters? Because in 4Q we saw some delays in ramp -ups, but how things have change d if you look at April and how should we expect the trend going forward from a next couple of quarters perspective? And secondly, on margins, Rajeev, how should we think about the wage hike this time around, which quarter will you see the impact of that?

Bhavik, as far as deal ramp -ups is concerned, the ones that we won in Q3 have all ramped up now and will provide us revenue in Q1 and beyond. Other than the one that we won on 31st March, the other deals have also started ramping up and should provide us positive revenues in Q1. The reason I'm confident about Sustainability growing faster than Q4 is because I know that that is in full flow. Mobility is where we've been seeing challenges. We had expected a little more growth in Mobility, but some of these deals got delayed. And I expect that Mobility should be either flat or grow but no more degrowth as far as I can see it right now. So that's the only question. In Tech again, we've been empanelled in a couple of places. Three of the hyperscalers now ar e almost 20 Mn+ accounts for us in an annualized run rate basis. So, I believe that growth to carry on because Tech is still pumped up about spending on AI and others, very relevant to what we are doing. Seasonality of SWC is there, but we are trying to overcome that. So, as we go forward, we do believe that we should be able to continue the path that we are on right now.

Bhavik, let me take the wage hike question. So, see, we are cautiously optimistic. I think Amit highlighted a lot of large deal wins. Of course, we'd like to see the ongoing headwinds to settle down in this quarter. As a management, we have yet not made any decision in terms of wage hike. I think that's something that will play out during the quarter depending on how we see the macro uncertainty kind of settle down.

In fact, we just gave wage hikes in November, Bhavik. So, the appraisal process has started, but we haven't made a decision on when to deliver the hikes in CY25.

Okay. Thank you.

Thank you. The next question comes from the line of Moez Chandani from Ambit Capital. Please go ahead.

Hi, good evening and thank you for taking my questions. I had three questions. Firstly, in terms of the large deals that you've signed, is there any change in terms of pricing or timelines for these deals vs the deals that you were signing, let's say, two or three quarters ago? That's the first question. Secondly, when it comes to geography, in your conversations with clients, is there any particular geography that you're seeing is worse impacted by these macro headwinds, particularly from North America v s Europe? And just thirdly and my last question, your onsite mix has seen a sharp increase this quarter. Is this just because of the Intelliswift acquisition or has there been any other strategic shift in terms of your onsite/offshore revenue mix?

As far as large deals is concerned, Moez, we are seeing probably the same kind of deal making that we saw in the past. Just that clients are coming in and asking for better efficiencies, leveraging AI and spot solutions that we have got. So, in fact, a significant part of the deal wins we've had this year quarter and last quarter have been baking in our own solutions and therefore, providing productivity benefits to the customer a nd keeping some of those as well. So that is what we have seen. Now these unusual requests that came for investments in Q4 and in fact came in the last week of the quarter from two, three of our strategic customers, we have not seen this in the past. We had seen it during COVID as well. So, they came in which we have obliged. But we don't think this is an ongoing thing. Things should from here on I think be okay. Third, in terms of geography you talked about, there is a lot of consolidation deals still running in Europe that we've got. The US has got more new tech digital transformation kind of deals running. So that's the broad contours. Lastly, we are starting to get a number of inquiries for Plant transfer, for line transfer, for operational technology support, for creating servitization of people's product lines as well as support on the China plus One strategy where we are providing them sourcing support as well. So that is a new kind of stuff that we've been seeing coming in as inquiries in the last, shall I say, 6 weeks.

Your question on onsite. This is Rajeev, let me address to it. Yes, majorly it's on account of Intelliswift, partly on account of some of the large deals that tend to start where we do work onsite and then we see it moving more towards offshore. But majorl y it's on account of Intelliswift consolidation.

All right. Got it. Thank you.

Thank you. The next question comes from the line of Ashish Aggarwal from Sundaram AMC. Please go ahead.

I hope I'm audible. Sir, two questions from my side. First of all, on the guidance given the deal signings tailwind we are seeing both in Q3 & Q4 and as you said in Q1, assuming there is no major macro headwind now from here on apart from what we have seen, is it fair to assume that organically FY26 will be, if not better similar to FY25? That's my first question. And secondly, on the comment you have made about the investments, you have made and some of the software proprietary solutions, etc , which have been provided to the clients. At a later stage, are these reimbursements from the clients or these are the investments you have already made, and this will not be reimbursed from the clients?

Number one, I would like to confirm to you that I do believe organically FY26 will be a better year than FY25 if the other shoe doesn't fall tomorrow. Look, I'm being honest. And that's how we are preparing, that's how we are adding. We're adding 2,500 freshers. The first lot of 500 will join in June towards the end. So, we are on it. So, nothing changes for us. We are preparing for a growth year. Now your second question was I'm sorry, can you repeat your second question?

The investments for the proprietary reimbursements?

So, look, the way it is in one particular case, it was investments that we had made, and we had implemented the product for them, the widget for them and there was a certain money owed to us and they came back and said that rather than paying you, can you say that this is goodwill generated for us. We're using it across our entire product family and at some point, we will make you hold, and we need support. In a second case, there was a niche solution that we had developed and worked on, which again was going to be billed on 31st March. We were requested to not invoice and again take it as part of our investment for the relationship. So , we have agreed to both of these and taken it forward. So, we don't see this ongoing, but this is a one-off that we had to accept. We believe this will help us in greater market share. It is in times of these when you support a client that they remember it and then they come back and support you when you need it. I do believe that this will help us, in growing our accounts, in growing our relationships and getting larger deals.

Got it, sir. Thanks a lot.

Thank you. We do have a follow-up question from Bhavik Mehta from JP Morgan.

So, going back to the investments related to clients, is it fair to assume that the revenues to an extent should also come back because you were requested not to bill them last quarter. So, could that be a tailwind in 1Q or 2Q?

Yes, Bhavik. May not be on the same deal, but other places, yes.

Okay. And just again going back to the guidance , because you said it is double digit, it's not 10%, it will be more than 10%. Is it fair to assume that 10% is like the worst case you're working with right now?

Bhavik, I request you, you've known us for a long time. Let us say 10% and I'm saying double digit. I'm saying better than FY25, FY26 will be better and that's where it is. And I don't think it's 10%. So let me leave it there. Of course this will be better.

Okay, fair enough. Thank you.

Thank you. There is a follow -up question from the line of Karan Uppal from Phillip Capital India.

So, Amit, just wanted to double click on Mobility vertical. So, in this vertical we have seen one large deal of $50 million in SDV space and you also mentioned that there are further deals in SDV, which you are seeing in the pipeline. So fair to assume that within Mobility, auto is doing well, but you are seeing pain in Aero and Off-Highway?

That's not true, Karan. In fact, see, there are stops in certain places. But overall, we do believe that we've got this differentiated set. My colleague, Alind, can add.

So, I'm sure, Karan, you are looking at the markets, you are aware of how our customers are doing there, whether they are in the automotive or in Trucks and Off-Highway or in Aero. So, the pain is there. What we do believe is that this is going to last for about a quarter or so like we said earlier. But given the solutions and some of the deep relationships that we have and the deals that we have won, part of which we talked about are consolidation deals, some are carve-out deals which are there. We do believe that the growth will come back sooner rat her than later in this sector. But still to be washed out and barring anything else happening, we do remain very bullish about this segment, and we'll continue to perform as we go along.

Thank you. The next question comes from the line of Sulabh Govila from Morgan Stanley.

So firstly, I wanted to check, I'm not sure if you've quantified what's the sort of impact on revenue this quarter from the investment that you did at the end of the quarter in terms of in the couple of clients that you mentioned?

Sulabh, this is Rajeev. Let me take that one. So, we will not break it down, Sulabh. We've of course clarified that look, we did see an upside from the Intelliswift acquisition, we've seen a few headwinds. We will not break it down to that level. But what I will suggest is if you can have an offline conversation with Sandesh.

Sure. Understood. And is it fair to assume similarly on margins, is it fair to assume that when the revenue comes back, the margin also comes back given that it was just the lack of this revenue that led to the margin weakness?

I'd say yes, Sulabh, that's how it is. And aside of this, I mean we are also running a very targeted margin improvement plan now in the organization. We are conscious that of course we didn't see these levels of headwinds, right? They all came in beginning of February. So, we are running a lot of efforts to sustain margins going forward, sustain and improve as well.

Okay. Understood. And then I wanted to just double -click on a comment that Alind , just made that we see growth coming back in Mobility sooner than later. I just wanted to understand what sort of data points or what sort of conversations, you're having with clients that are making you believe that that could be the case?

So, like I said earlier, we have talked about some of the deals that we have already won earlier in the quarter. And then we have some more transformation deals which are running, which we hope to close sooner rather than later. And that's the confidence that we have based on our relationship with our customers that they will go through , and that will lead to the growth that we are talking about.

Okay. No. My question was more from a perspective of the pause or the stops that are there in certain places that those getting lifted, if there is a conversation regarding that with the clients?

See, that's a broader market question. What we are seeing is and again this is available in public forums. You can find out that some of the programs that our customers are running, they are getting delayed so they're getting pushed out by about a year or so. And hence, the trajectory of the efforts required to bring them to fruition automatically goes down. So that we will see plus the ambiguity that remains , because of tariffs and the cost that the customers will have to take as they go through. So those ambiguities do remain, but they also lead to opportunity of consolidation, they lead to opportunity of picking up some of these transformation deals that we are talking about and that's what we are riding upon. We do see that this will remain. The market as such will remain ambiguous for about another quarter or so. Probably towards the end of second quarter of the financial year, we believe that this will start settling down.

Understood. And then just the last bit for me. Amit, we sort of mentioned on order inflow that half of the order inflow that we got this quarter were won against competition. So, assuming half of these are consolidation deals, is it fair to assume that these come in at a lower margin than the company average?

No. In fact, when I said won against competition, these were I said 70% of the deals were won in a competitive manner based on solutions we had, right, 30% were single source to us. That's what I meant by that. I would like to confirm to you that all the deals we have won in Q4, as well as the deals we have won in Q3 are at standard segmental margins in which they have been won.

Perfect. So, thanks a lot for taking my questions.

Thank you. Ladies and gentlemen, we have reached to the end of the Q&A session. I now hand the conference over to Mr. Sandesh Naik for his closing comments.

Thank you. Thank you all for joining us on the call today. We hope we were able to answer your queries. If there are any follow -ups, we'll be happy to address them. With that, we are signing off for today and look forward to interacting with you through the quarter. And I wish all of you a very good evening and a good day. Thank you.

Thank you. On behalf of L&T Technology Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

This transcript has been lightly edited for clarity and accuracy.