Larsen & Toubro Technology Services (LTM) and L&T Finance remained in focus after announcing their Q1 FY27 results. While brokerages have mixed opinions on LTM's growth outlook, they remain largely constructive on L&T Finance owing to improving asset quality, healthy retail loan growth and better-than-expected profitability.

Nomura

• Rating: Buy
• Target Price: ₹4,400
• Revenue growth broadly in line.
• EBIT margin beat expectations.
• Technology and BFSI led growth.
• Healthy deal wins with book-to-bill ratio of 1.37x.
• Positive on the new CEO's AI-led strategy.

---

Jefferies

• Rating: Underperform
• Target Price: ₹3,360
• Q1 largely met modest expectations.
• Management's FY27 growth guidance appears optimistic.
• Reduced FY27–FY29 earnings estimates.
• Weak new client additions remain a concern.

---

JPMorgan

• Rating: Neutral
• Target Price: ₹4,050
• Q1 results were mixed.
• AI-led revenue contributes around 12% of total revenue.
• Expects margin improvement during FY27.

Nomura

• Rating: Buy
• Target Price: ₹370
• Net profit exceeded expectations.
• Improving asset quality, especially in the two-wheeler portfolio.
• Raised FY27–FY29 earnings estimates by 2%–10%.
• AI-based underwriting engines continue to improve credit quality.

---

JPMorgan

• Rating: Neutral
• Target Price: ₹320
• Profit and operating performance beat estimates.
• Retail AUM growth remained strong.
• Fee income exceeded expectations.
• Credit costs remained manageable despite higher provisioning.
• Valuation has become richer after the recent rally.

• AI adoption continues to support both companies.
• LTM reported healthy deal wins.
• L&T Finance showed improving asset quality.
• Retail loan growth remains robust.
• Margins are expected to improve further.

• Slower global technology spending.
• Weak client additions for LTM.
• Monsoon-related risks for rural lending.
• Insurance distribution reforms.
• Premium valuations after recent rallies.

Investor Takeaway

Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that LTM continues to divide brokerage opinion, with optimism around AI-led transformation balanced against concerns over client additions and growth. In contrast, L&T Finance enjoys broader support due to strong retail lending growth, improving asset quality and technology-driven underwriting. Investors should track execution, earnings momentum and valuations before taking long-term investment decisions.

Disclaimer: This article summarizes publicly available brokerage opinions and is for educational purposes only. Brokerage recommendations and target prices may change without notice. Investors should conduct their own research before making investment decisions.

Read free investing insights at Indian-Share-Tips.com, a SEBI Registered Advisory Services.

LTM Q1 FY27, L&T Finance Q1 FY27, Nomura LTM, Jefferies LTM, JPMorgan LTM, L&T Finance target price, AI IT stocks, NBFC stocks India, brokerage reports