L&T Technology Services (LTTS), an Indian multinational engineering research and development (ER&D) firm, has significantly lowered its revenue growth forecast for fiscal year 2026 (FY26), now anticipating mid-single-digit growth. This revision comes after the company reported a disappointing performance for the third quarter of FY26, which ended on December 31, 2025. During Q3 FY26, LTTS recorded a sequential decline in constant currency (CC) revenue by 2.8%, missing analyst expectations. While the company's USD revenue rose 4.6% year-on-year to $326.3 million, it was down 3.2% quarter-on-quarter. The net profit also saw a sequential decline of 7.9% to ₹302.6 crore. This downturn prompted LTTS to adjust its full-year FY26 revenue guidance from an earlier double-digit projection. The company's management attributed the revised outlook to a strategic portfolio rationalization, involving the exit of certain low-margin businesses and offerings in regional markets, particularly within the Hi-Tech segment and areas like India and Israel. This move aligns with LTTS's 'Lakshya' plan, which emphasizes a pivot towards higher-margin, value-accretive areas and prioritizing margin improvement over aggressive top-line expansion. Despite the weaker revenue, the company sustained momentum in large deal wins, securing an average total contract value (TCV) of $200 million for five consecutive quarters. The sustainability segment showed double-digit year-on-year growth, and mobility is reportedly seeing a turnaround. Following the Q3 results and the updated guidance, several prominent brokerages, including Nomura, JP Morgan, HSBC, and Motilal Oswal, have expressed concerns regarding LTTS's near-term growth prospects. They have consequently lowered their price targets and revised down their revenue and earnings per share (EPS) estimates for FY26-28. The news has led to a noticeable decline in LTTS shares, reflecting investor apprehension about the impact of the restructuring and slower growth.