Five-Year Nokia Contract Sends LTTS Shares Up 3.18%
Key Facts
L&T Technology Services has signed a five-year agreement with Nokia to support engineering and research and development work in India, according to coverage by Moneycontrol dated October 26, 2026. The report said the company’s shares rose that day after the agreement was announced, gaining 3.18% to 4,034.80 rupees in trading on the National Stock Exchange of India at 10:22 a.m. local time. The agreement’s duration gives the two sides an extended framework for collaboration on engineering and technology services, though the report did not state the contract’s financial value. The deal comes as the company focuses on expanding its work in telecommunications and artificial intelligence. It also includes a dedicated engineering team in India to support Nokia’s global technology center.
The scope of work includes product engineering, software development, systems integration and product support, according to Moneycontrol. LTTS will form a dedicated engineering team in India to support Nokia’s global technology center, placing engineering resources in a direct collaboration model with the Finnish company. The agreement includes setting up a dedicated development center in India, through which LTTS teams will work with Nokia’s global research and development teams under an integrated operating model. This arrangement brings multiple areas of engineering and software support together in a single long-term framework. The report provided no additional financial details about the contract.
The specified technology areas include 5G networks, intelligent automation, AI-enabled operations and AI infrastructure, according to Moneycontrol. This scope combines traditional telecommunications work with the development of infrastructure needed to run artificial intelligence applications. Alind Saxena said the collaboration “strongly aligns with the big bet of LTTS’s Lakshya 31 plan,” pointing to next-generation computing and AI infrastructure. The executive’s comments place the agreement within the company’s stated strategic priorities, while the work focuses on engineering execution and product and systems development. The report did not specify a phased timeline for establishing the center or starting each area of work.
The company’s previous quarterly results show that LTTS recorded revenue of 30,404 million rupees in the second quarter of fiscal 2027, up 12.1% year over year, according to its results statement. Its earnings before interest and taxes margin was 16.3%, after improving 60 basis points quarter over quarter. Reported net income also rose 66.8% year over year, but the figure included a one-time gain of 1,650 million rupees from the divestment of its SWC business. These figures provide context for the company’s performance before the Nokia contract announcement, but do not indicate the contract’s contribution to revenue or earnings. The company did not disclose the agreement’s value or its expected financial impact in the available coverage.
In its results statement, LTTS management said it expects to strengthen revenue momentum in the second half of the fiscal year while maintaining healthy operating margins. It also reiterated its ambition to achieve annual revenue growth of 13% to 15% and earnings before interest and taxes margins of 16% to 17% over the next five years. These targets set out management’s financial framework for the coming period, while the Nokia agreement runs for five years and covers engineering and research work in India. At Nokia, group sales to AI and cloud customers rose 123% in the third quarter of 2026 year over year, while orders from this customer segment increased 118%, according to its interim report. The sources gave no specific later date for the development center’s launch or for updates on the agreement’s implementation.