L&T Tech Shares Plunge 8% as Brokerages Cut Targets After Growth Guidance Reduction

• L&T Technology Services (LTTS) shares dropped 8% to Rs 3891.05 on January 16 due to weaker-than-expected December 2025 quarter results.
• Brokerages like HSBC, Nomura, and JPMorgan have reduced target prices for LTTS after the company lowered its FY26 growth guidance from double-digit to mid-single-digit.
• LTTS reported a 10% YoY increase in operational revenue to Rs 2923 crore but a 6% decline in consolidated net profit to Rs 303 crore for the October-December 2025 quarter.
• The company is shifting strategy to prioritize margin improvement over revenue growth, opting not to renew contracts with low-margin clients.
• HSBC maintained a 'Hold' rating with a target of Rs 4745, Nomura a 'Reduce' with Rs 3900, and JPMorgan a 'Neutral' with Rs 4650.

Why It Matters: LTTS shares fell sharply after disappointing Q3 results and reduced growth guidance, leading brokerages to cut targets.