L&T Technology Services Limited (NSE: LTTS) Q4 2025 Earnings Call dated Apr. 24, 2025
Corporate Participants:
Sandesh Naik — Head of Investor Relations
Amit Chadha — CEO & Managing Director
Rajeev Gupta — Chief Financial Officer
Analysts:
Yogesh Aggarwal — Analyst
Karan Uppal — Analyst
Bhavik Mehta — Analyst
Moez Chandani — Analyst
Ashish Aggarwal — Analyst
Sulabh Govila — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4FY25 conference call of L&T Technology Services Ltd. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touch tone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sandesh Naik, head of Investor Relations. Please go ahead.
Sandesh Naik — Head of Investor Relations
Thank you, Ryan. Hello everyone, I am Sandesh and welcome you all to the earnings call of L and T Technology services for the fourth quarter of FY25. Our financial results, investor release and press release have been filed on the stock exchanges and are also available on our website www.ltts.com. i hope you have had a chance to go through them. This call is for 60 minutes. We will first start with the management remarks which would be for about 20 minutes and then open up for Q and A.
The audio recording of this call will be available on our website approximately one hour after the call ends. With that, let me introduce you to the leadership team present on this call. We have with us Amit Chadha, CEO and MD Abhishek Sinha, Executive Director and President. Alan Saxena, Executive Director and President and Rajiv Gupta, cfo. We will begin with Amit providing an overview of the company performance and outlook. Followed by Rajiv who will walk you through the financial performance. I now invite Amit for his opening remarks.
Amit Chadha — CEO & Managing Director
Perfect. Thank you Sundesh. And thank you all for joining us on the call on a busy results day today. You will bear with me with my advice today. Have a little bit of a throat infection but I’ll try and do my best. We hit three major milestones during the quarter. Crossed 10,000 crores in annual revenue rupee terms. With this the company has an annualized run rate of $1.4 billion. Registered highest ever large diesel. TCB bookings higher than Q3 as well, which was a record for us in itself surpassed 1500 patents filing till date. Coming to quarter four results and highlights Even in a tough market environment, we had a third straight quarter of sequential organic and overall growth in quarter four. FY25 industry leading revenue growth in USD was up 10.7% led by tech and sustainability segments. Continuing from Q3, our large deal momentum recorded the highest ever TCV bookings including 180 million plus deal, 150 million plus deal along with 30 billion plus one deal, 20 million plus one deal and 3 USD10 million plus deals. Order inflow as I look at it on these large deals alone is up quarter on quarter more than 25%. Half of these deals were won against competition reflecting our growing market share. Based on our differentiated offerings which we had invested in during the first half of the year, AI Genai and other technologies, we had anticipated better revenue growth in quarter four. However during the quarter the overall macroeconomic created environment created unexpected headwinds for us. A few of the large deals we won saw delay in ramp ups and signing of some large deals got deferred to the end of the quarter. As you are aware, we announced one deal on 31 March as well. Second, in order to support select strategic customers, some of our proprietary software solutions and niche engineering work which was done had to be done on an investment basis. We believe this will help us in strengthening our case for larger deals in the future, building bigger market share, wallet share as well as growing these accounts Further. There are some of these agreements soft agreements we have based on this. Lastly, The EBIT was 13.2 for the quarter three aspects here. This had the impact of IntelliSwift integration during quarter four as we had shared in the previous earnings call, the higher growth in SWC revenue and finally additional costs on supporting customers and related investments that I just talked about earlier. We continue to focus on levers to manage our operations effectively now for the full year FY25. In FY25 we delivered a growth of 8.9% in constant currency as per analyst reports, India Inc. Has been growing at 6%. So we’re broadly happy that your company has grown higher than industry sustainability grew 5.7%, mobility grew 9.3% despite a challenging year while tech including IntelliSwift grew 11.3% in. CC terms. USG Europe led the charge, recording the strongest growth of about 21% for us. All other GEOs showed positive growth. Large deals in FY25 we closed a total of 32 deals greater than 10 million, one of them 80 million 350 million 530 million 250 million range and 10 in the 15 to 25 million range. All in all, fairly satisfied with what we’ve been able to close, I do expect this deal momentum to continue. Technology we’re proud that we surpassed 1500 patents filing in FY25 cumulatively, including 573 filed for LTTs and 929 on behalf of our customers. Of these, 190 patents are in the AI and Genai domain alone, reflecting our focus on advanced technology. With an average of 50 patents added each quarter. Our total filing for FY25 now stands at 206 Nvidia invited and partnered with LTTS across three areas, rail medtech and smart spaces. At Nvidia GTC, LTTS showcased track EI and AI powered railway inspection Track Tool using Nvidia Jetson for real time defect, defection detection and predictive maintenance. Track EI also won the ATIYA Grade Innovation Award this quarter. In Medtech, the focus is on diagnostic imaging and surgical equipment. In Smart spaces, LTTS leveraged its advanced AI fusion platform to set up an integrated command and control center which enhancing the experience of over 660 million pilgrims M&A. We have successfully integrated IntelliSwift allowing us to build a strong portfolio in hyperscalers to address adjacent and address adjacent markets in service LED verticals like retail, Fintech and healthcare. As I go forward into the following quarters I will start reporting progress first our solutions and then our deals in retail, fintech and healthcare to you as well. Let me provide you segmental performance and outlook now. Mobility segment showed resilience with revenues flat in this quarter to previous like we had guided you in the last quarter. A year ago we showcased iDrive, our framework for SDVs. We also launched hyper personalization and AI for driver experience, all of which resonated with our clients and Cas. Such investments are paying off for us, not just Auto and pnoh as well. We continue to focus we continue to focus on winning large deals in technology areas like FPV, Hybrid and AI. Recently we won a notable 50 million US. Which we announced on 31 March with a European OEM on SBV and expect more such deals in the coming quarters from US and Europe. We believe that overall mobility segment will stay muted in the immediate term and will witness a turnaround towards the end of Q2. Coming to sustainability sustainability did well with a 2% Q on Q growth in revenues. Higher growth was tapered due to an unexpected delay in ramp up of deal signs but are now all set to grow in the coming year including April. Companies are realigning the supply chains with a clear focus on leveraging advanced engineering solutions. This includes initiatives like predictive maintenance, real time asset performance management and leveraging, sensor driven analytics and industrial AI all underpinned by LTTS strength in plant engineering and industrial products. This we believe will help us in growing the sustainability segment faster in FY26 as compared to FY25 in plant engineering. We continue to see strong demand in ONG and CPG led by CAPEX projects Plant Modernization Digital Twins Key clients to ramp up with us is a large deal in ong. We were chosen by European Oil field supplier as a preferred engineering supplier to support green energy initiatives. We also expanded our engagement with an ONG major for engineering and enterprise asset management. CPG continues to spend and we are we have created differentiated solutions in that space. We see strong demand for greenfield and brownfield projects in plant modernization, digitization and safety. In Feb we introduced Refinery next, a solution aimed at transforming traditional refineries into sustainable, intelligent and highly efficient operations. Refinery NEXT integrates advanced AI driven tools for predictive maintenance, intelligent asset management and demand forecasting along with energy optimization and net carbon compliance. Moving on to industrial we are seeing larger deals being in and a robust pipeline of deals going ahead because of our differentiated offerings in industrial machinery, building technology, electrical power and controls. The focus areas will be energy and automation, semiconductor machinery, data center, motion and motion and robotics. Nearly half the large deals TCB signed in this quarter are in the Industrial products subsegment which is one of our most profitable sub segments. This quarter we signed our largest deal in industrial products to date, $80 million plus digital engineering consolidation deal with a manufacturer of industrial products and solutions. We mark a decade of engineering excellence with Siemens to drive innovation. With the creation of integrated digital twins for products and plants. Overall for the sustainability segment we see an increased large deal pipeline and expect the growth momentum to be better than Q4 with both industrial and plant subsegments firing at the same time. Finally moving into tech, tech showed the strongest growth 28% Q on Q in revenue led by SmartWorld, organic software and platform subsegment. Additionally, there was an upside of integration of IntelliSwift revenues in the quarter. Excluding IntelliSwift, Tech still had the highest growth amongst all the segments. The software and platform did well with growth in both hyperscalers and key service industry accounts in healthcare, fintech and retail. We are starting to gain traction with at least about I would say about 45 senior level meetings done across the Intellisive portfolio in the last quarter alone. The feedback and response has been extremely positive and encouraging. The communication, media and consumer tech sectors are experiencing significant transformation driven by advancements in AI and immersive technologies. In the MedTech subsegment demand is being driven by Quora digital manufacturing and performance engineering. Overall we expect Medtech’s offshore platforms to do well along with IntelliSwift in the coming years. Now let me discuss the outlook for FY26. The ongoing regioning of tariff based supply chain dynamics presents significant opportunities for LTTs to drive growth and deliver enhanced value of its clients. With AI adoption accelerating in the software defined everything in the digital domain. Both are core strength of LDTs and some of these reject offerings that we had done in H1 and capabilities will serve as a key differentiator in securing large high impact deals. With Q3 and Q4 having consecutively seen the highest large deal TCV win so far. We are encouraged by the large deal TCV pipeline that we have built so far. We continue to see market share gain across our top accounts. We have Multiple hundred million deals, 50 million deals running in advanced stages of negotiation and hope to take them to conclusion in the coming quarters. I will confirm that quarter one looks to be like a quarter four in terms of deal wins as well at this stage. At the same time we have to bear in mind the uncertain market environment and tightening demand conditions which is causing disruption in the shorter term but will be beneficial for the ER and the industry over the medium to long term. To conclude, we believe our go deeper to scale strategy with our diversified portfolio of three segments, mobility, sustainability and Tech gives us a balanced approach to the market and not limited to one segment. This gives us the confidence of overall growth even in turbulent times. We expect FY26 to be a better year. Than FY25 and confirming double digit revenue growth in USD CC terms for FY26. I would also like to reaffirm our medium term outlook of $2 billion of revenue. With that let me thank you for your all your support encouragement through the year. I now hand over to Rajiv from here. Thank you.
Rajeev Gupta — Chief Financial Officer
Thank you Amit. Greetings to all of you. Let me start by saying that we had many positives in quarter four of FY25 and for the year FY25 quarter for FY25 saw record highest ever deal wins. As mentioned by Amit, FY25 revenue crossed rupees 10,000 crores milestone. Our metrics in terms of DSO and free cash flows for FY25 continue to improve. Finally, acquisition of intellisift and integration during quarter four FY25 which of course is in line with our strategy to build capabilities in software and platforms capability for hyperscalers.
With that I will take you through the financial details of quarter four and for the year FY25. Beginning with quarter four FY25 financial our revenue for the quarter was 2,982 crores. A growth of 12.4% on sequential basis. Our year on year growth for the quarter came in at 17.5%. EBIT margins for quarter four came in at 13.2%. Let me walk you through the EBIT moment in this quarter. First, consolidation of Intellisive Financials had an impact of roughly 150 basis points on the EBIT margins.
We had called this out in our quarter three commentary as well. Macro related headwinds in the quarter impacted anticipated revenues leading to impact on EBIT margins especially in higher margin segments such as sustainability and mobility. We did absorb cost to support select strategic customers during these tough market conditions. We firmly believe this will further strengthen our partnership with the customers. Moving to FY25 financial our revenue was 10,670 crores.
A growth of 10.6% of over FY24. We saw balanced growth across our diversified segments. EBIT margin for the year came in at 14.9%. Let me explain the EBIT evolution for FY25. We did make investments during H1 of FY25 to augment our solutions and. Capabilities for new age technologies and also strengthen leadership across our new segments mobility, sustainability and tech. This indeed helped us to win record large deals in H2FY25 and as Amit mentioned, we continue to see stronger pipeline and lot more $50 million plus deals that we pursue. Second, the acquisition of IntelliSwift had an impact on EBIT margins. Finally, macro related headwinds in quarter four had an unexpected impact on FY25 margins moving to below EBIT.Other income for the quarter came in at 33 crores resulting from consolidation of facilities leading to benefits on ROU. Effective tax rate for quarter four FY25 was 27.4% and for FY25 at 27.4% as well. This is within our expectation of 27.5%. Net income for the quarter stood at 311 crores which is 10.4% of revenue. For FY25, net income came in at 1267 crores which is at 11.9% of revenue. Moving to balance sheet, Let me now highlight some of the key line items. Our quarter 4 combined DSO including Unbilled continued to improve and came in at 106 days compared to 112 days in quarter three. An improvement of six days. Q4 unbilled came in at 18 days, similar levels as quarter three. We have improved upon this metric compared to our target range of 110 to 115 days. Talking about cash flows in FY25, free cash flows came in at 1379 crores versus 1251 crores in FY24, an all time high in absolute terms and a healthy 109% of net income. Our cash and investments improved to 2976 crores end of FY25 versus 2883 crores end of FY24. This is after paying for intellisift acquisition on capital return, the Board today recommended a final dividend of 38 rupees per share taking the total dividend for FY25 to rupees 55 per share translating to a dividend payout of 46% for FY25. Our return on equity stands at 22% for FY25. Moving to revenue metrics on a sequential basis, our dollar revenue growth was 10.7% in reported terms, mainly driven by 27.9% sequential. Growth in tech segment Talking about segmental margin performance for quarter 4 FY25 mobility segment margins remained flat in line with revenue growth. Sustainability margins declined majorly due to absorption of cost to support select strategic customers. Tech segment margins have been impacted primarily due to intellisuit consolidation, cyclical growth of SWC business and lower than anticipated revenues due to ongoing headwinds. Moving to operational metrics for the quarter, the offshore mix came in at 55.8% compared to lower compared to quarter three due to intelliswift consolidation. We aspire to improve this ratio to 60% levels in the medium term. The fixed price revenue mix was 39.9% in quarter four FY25 client profile which is active number of clients which went up by 43 due to Intellisip acquisition. The categories of 20 million and 1 million plus accounts have shown an improvement in quarter four FY25. Client contribution to revenue in quarter four FY25 continues to be in similar range as compared to quarter three of FY25. We expect revenue from top customers to improve going forward as our targeted client mining programs come to fruition. Headcount improved sequentially by 793 to 24,258 as of year end. This is mainly on account of consolidation with IntelliSwift. Attrition remained range bound at 14.3% levels. Realized rupee for quarter four was around 86.41 to the dollar. A depreciation of 1.6% versus quarter three. Before I conclude, let me provide visibility on margin trajectory going forward with the ongoing headwinds from tariffs and macro related uncertainties. We remain cautiously optimistic for the next few quarters though we are quite bullish in terms of our deal wins. Amit already talked about record deal wins in Q4 Q3 also we saw very healthy deal wins Q1 also we are expecting to see similar levels of healthy deal wins. We will continue to pivot on revenue growth to gain market share while leveraging on operational efficiency for margin improvement and retrade our aspiration of improving ebit margins to mid 16% levels between quarter four FY27 and quarter one FY28. I thank all of you for your support and your cooperation. With that I hand over to the moderator for Q and A.
Questions and Answers:
Operator
Thank you ladies and gentlemen. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Yogesh Agarwal from hsbc. Please go ahead.
Yogesh Aggarwal
Hi guys. There’s couple of questions. Firstly few clarification. Sorry if I missed. So in the quarter you added $33 million incremental, how much was from Intellisive?
Amit Chadha
What’s your second question? We will answer it together.
Yogesh Aggarwal
Okay. The second Amit, is that for the. I mean it’s related to it the margin impact itself. Because looks like the 150 basis point was. If the full quarter integration was there. Just clarify on that. The other thing is on the organic growth, sorry for the guidance for next year, double digit. Does that include intelligence as well? Because that would mean that 7, 8% growth would come from there itself. Yeah. So that’s the question.
Rajeev Gupta
Yogesh, this is Rajiv here. Let me take the first question and I’ll request. I’ll take the first two questions and I’ll request Amit to take the question on guidance. So your question was you know the increase. How much of that really is coming from IntelliSift? So we did clarify in our quarter three commentary that IntelliSwift is a business analyzed 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 also the full quarter came. The full quarter came in fourth quarter. So yes, you are seeing the full quarter include intelliswift barring a few days. Technically the conclusion of the Transaction happened on January 3rd.
Yogesh Aggarwal
January 3rd. Okay, okay. Okay.
Rajeev Gupta
Laid out the full quarter if you may say second in terms of margin dilution. Yes, I did call it out in the quarter three commentary as well. We saw roughly about 150 basis point 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 falling quarters.
Amit Chadha
Now in terms of growth, yes, we’ve called out double digit and this is. We do still believe that the storm coming or 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 we have had in the last two quarters, we believe double digit growth is assured. Now where will that double digit fall is something to be seen. It’s not 10 is 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 and a part of that will come from others.
Yogesh Aggarwal
Thank you. Right, sorry, just clarify. So since Rajiv said the full quarter was integrated, were you a bit disappointed with the fourth quarter organic growth? I think you did mention some few days got pushed down. So is that impacted? Because I think we were expecting a bit better growth growth in the fourth quarter organic.
Rajeev Gupta
Yeah, like if you would have heard my commentary, paid attention to it. I said clearly that in Q4 there were I’ll quote again few large deal. One saw delay in ramp up and signing of deals with effort to the end of the quarter B in order to select support select strategic customers, some of our proprietary solutions 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.
Yogesh Aggarwal
Got it. Thank you.
Operator
The next question comes from the line of Karan Uppal from Philip Capital India. Please go ahead.
Karan Uppal
Yeah, thanks for the opportunity and thanks for the guidance. This the question is on next quarter. So in FY25 we saw HWC seasonality leading to a weaker Q1. So revenue declined 3%. So are you expecting in FY26 also the content to be similar and then the growth to pick up in rest of the year? That’s first question.
Amit Chadha
Karan, what’s your second question? Answer it together.
Karan Uppal
Second question is to Rajiv. So Rajiv, high tech margins have come up significantly. You explained that it’s because of intensive integration. So should we assume this to be the base for high tech vertical margins and any color in terms of segmental margins, how those will evolve in FY26 that would be helpful.
Amit Chadha
Sure. So let me take the first one Karan. Very good question Karan. I can confirm we don’t want to give quarter on quarter guidance like some peer companies do. But I want to give you indicatively at this stage sustainability will definitely grow quarter on quarter. So. Software and platforms and which include organic plus inorganic will grow quarter on quarter. Medtech will grow quarter on quarter. Mobility will I think will grow as well as it looks right now the seasonality of SmartWorld 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 minimize it, but that is where I will stop the quarter to be played out. Lot of work to be done. Rajiv, you want to answer on margin?
Rajeev Gupta
Sure. Karan. As far as the margin, I think first, like I have highlighted, right and of course I think you read that the high tech margins had the impact of intellisig acquisition roughly about 150 basis points. Second, it also had the cyclical growth of SmartWorld. Now to answer further to your question, in terms of where do 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 on 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.
Karan Uppal
Okay, thanks. Thanks for the answers and all the best.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. Once again a reminder ladies and gentlemen, if you have a question, please press star and 1. The next question comes from the line of Bhavik Mehta from JP Morgan. Please go ahead.
Bhavik Mehta
Thank you. So couple of questions. Firstly, on all these large deals which we have been winning in frequent 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 changed 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, Rajiv, how should we think about the wage hikes this time around? Which quarter will you see the impact of that? Thank you
Amit Chadha
Bhavik. As far as green 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 quarter one. The reason I am confident about sustainability growing faster than quarter four 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 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. Intake again been impanded in a couple of places. Three of the hyperscalers now are almost 20 million plus 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.
Rajeev Gupta
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’ve yet not made any decision in terms of wage hikes. I think that’s something that will play out during the quarter depending on how we see the macro uncertainty kind of settle down.
We just gave wage hikes in November, so the appraisal process has started, but we haven’t made a decision on when to deliver the hikes in 20. See you at 25.
Bhavik Mehta
Okay, thank you.
Operator
Thank you. The next question comes from the line of Moaz Chandani from Ambit Capital. Please go ahead.
Moez Chandani
Hi, good evening and thank you for taking my questions. I have 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 versus 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 versus. Europe and just thirdly, and my last question, your on site 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 on site offshore revenue mix? Thank you.
Amit Chadha
As far as large deals is concerned, Mohit, 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’ve 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 and keeping some of those as well. Right.
So that is what we have seen. Now these unusual requests that came for investments in quarter four in fact came in in the last week of the quarter from 2, 3 of our strategic customers. We have not seen this in the past. We’ve 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 contour. Lastly, we are starting to get a number of inquiries for plant transfer, for line transfer, for operational technology, support for creating sotization 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, six weeks.
Rajeev Gupta
Your question on onsite. This is Rajiv. Let me address to it. Yes, majorly it’s on account of IntelliSIF, partly on account of some of the large deals that tend to start where we do work on site and then we see it moving more towards offshore. But majorly it’s on account of intellisive consolidation.
Moez Chandani
All right, got it. Thank you.
Operator
Thank you. The next question comes from the line of Ashish Agarwal from Sundaram amc. Please go ahead.
Ashish Aggarwal
Yeah, thanks. 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, what, 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 and the you have made and some of the software, proprietary solutions etc, right. Which have been provided to the clients at a later stage, are these reimbursement for the clients or these are the investment you have already made and this will not be reimbursed from the clients. Yeah, thanks.
Amit Chadha
Number one, I would like to confirm to you that I do believe organically FY26 will be a better year than FY25. Okay. The other shoe doesn’t fall tomorrow.
Ashish Aggarwal
Okay,
Amit Chadha
Look, I’m being honest, right? Yeah. And that’s how we are preparing. That’s how we are adding. We’re adding 2500 pressures. The first lot of 500, we join in June towards the end. So we are on it, right. Nothing changes for us, but we are, we are preparing for a growth year. Now your second question was. I’m sorry, can you repeat your second question? The investment. The investment. 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 whole and we need support. In the second case, there was a new solution that we had developed and worked on which again was going to be built 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. This is a one off that we had to accept. We believe this will help us in greater market share. You know, it is in times of these, when you support a client, 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.
Ashish Aggarwal
You got it, sir. Thanks. Thanks a lot.
Operator
Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and 1. Once again, if you wish to ask a question, please press star and one. We do. Have a follow up question from Bhavik Mehta, from JP Morgan, Please go ahead.
Bhavik Mehta
Thank you. So going back to this investment related to clients, is it fair to assume that the revenues to an exchange should also come back because you were requested not to build them last quarter? So could that be a tailwind in 1Q or 2Q?
Amit Chadha
Yes, yes. May not be on the same deal but other places. Yes, yes. Okay. And just again going back to the guidance, is it because you said it’s double digit, it’s not 10%. It’ll be more than 10%. Is it fair to assume that 10% is like the worst case you’re working with right now? I request you, you’ve known us for a long time, let us say 10% and I’m saying it’s not.Sorry, I’m saying double digit, I’m saying better than FY25, 26 will be better. And that’s where it is.
And I don’t think it’s 10%. So let me leave it. Of course.
Bhavik Mehta
Okay, fair enough. Thank you.
Operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. A reminder, if you wish to ask a question, please press star and 1. That is a follow up question from the line of Karan Upal from Philip Capital India. Please go ahead.
Karan Uppal
Yeah, thanks for the opportunity again. So I just wanted to double click on Mobility Vertical. So in this vertical we have seen one large deal of $50 million in SBB space. And you also mentioned that there are further deals in SBB which you are seeing in the pipeline. So try to assume that within Mobility auto is doing well but you are seeing pain in aero and off highway.
Amit Chadha
Well that’s not true, Karan. In fact we’ve seen across see there are stops in certain places but overall we do believe that we’ve got this differentiated set. My colleague Alin, can I. 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 traction of highway, 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 rather 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 will continue to perform as we go along.
Karan Uppal
Okay, thanks. Thank you.
Operator
Thank you, ladies and gentlemen. If you have a question, please press star and 1. The next question comes from the line of Sulab Govila from Morgan Stanley. Please go ahead.
Sulabh Govila
Yeah, hi. Thanks for taking my question. 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.
Rajeev Gupta
Sulab, this is Rajiv. Let me take that one. So we will not break it down. Sulab, we’ve of course clarified, you know that look, you know, we did see an upside from the Intellisu 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.
Sulabh Govila
Sure. Understood. Understood. And is it fair to assume similarly on margin, it’s 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.
Rajeev Gupta
Yes, that’s how it is. And aside of this, 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.
Sulabh Govila
Okay, okay, understood. And then I wanted to just double click on a comment that Alin 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.
Amit Chadha
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.
Sulabh Govila
Okay. Okay. Now 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.
Amit Chadha
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 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 and plus the, 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 well remained the market as such will remain ambiguous for about another quarter or so, probably towards the end of second quarter of our financial year. We believe that this will start settling down.
Sulabh Govila
Understood? Understood. And then just the last bit from me, Amit, we sort of mentioned on order inflow that half of the order inflow that we got this quarter were one against competition. So assuming this half of these are consolidation deals, is it fair to assume that these come in at a lower margin than the company average?
Amit Chadha
No. In fact, when I said one against competition, these were, I said 70% of the deals were won in a competitive manner based on solutions we had. 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 quarter four, as well as the deals we have won in quarter three are at standard segmental margins in which they have been won.
Sulabh Govila
Perfect. So thanks, thanks a lot for taking my questions.
Operator
Thank you. Ladies and gentlemen, we have reached the end of the question and answer session. I now hand the conference over to Mr. Sandesh Nair for his closing comments.
Sandesh Naik
Thank you. Thank you all for joining us on the call today. We hope we were able to answer your queries. If. 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.
Operator
Thank you. On behalf of LNT Technology Services limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.