The move comes just three years after LTTS acquired the business in April 2023 for around ₹800 crore.
In FY25, the SWC segment contributed ₹1,027 crore, accounting for about 9.6% of the company’s revenue.
The divestment aligns with LTTS’ upcoming five-year “Lakshya” strategy, spanning FY27 to FY31, under which the company plans to sharpen its focus on high-growth areas.
A key pillar of this strategy is Engineering Intelligence (EI), where LTTS intends to increase investments.
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By exiting the SWC business, the company aims to reallocate capital towards EI and other core areas, while stepping away from relatively lower-margin or non-core segments.
LTTS is targeting medium-term EBIT margins of around 16% as part of this transition.
The broader Lakshya plan outlines six strategic technology bets, with a focus on driving growth across its three key segments — Mobility, Tech and Sustainability — while strengthening its positioning as a global engineering intelligence partner.
The company had already initiated restructuring efforts in Q3 FY26, including pruning low-margin offerings and select geographies to build a more efficient base ahead of the new strategy.
It had also revised its FY26 growth guidance from double-digit constant currency growth to mid-single-digit growth.
CEO and MD Amit Chadha said the company is recalibrating its priorities towards Engineering Intelligence, Software and Digital Manufacturing to unlock faster growth opportunities. He added that integrating SWC’s capabilities will strengthen AI-led offerings while creating a stronger platform for employees and clients.
Shares of L&T Technology Services ended 1.84% higher at ₹3,211 on Wednesday, though the stock has declined about 27% so far this year.
