L&T Technology ServicesNSE:LTTS +1.88%95 Return-on-Tangible-Equity is 26.14% as of Mar. 2026, which is 18% below its 10-year median of 31.92. GuruFocus rates NSE:LTTS with a GF Score™ of 95/100 and a GF Value™ of ₹5,255.06 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,476 Software companies, L&T Technology Services ranks better than 73.26% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. L&T Technology Services's annualized net income for the quarter that ended in Mar. 2026 was ₹13,284 Mil. L&T Technology Services's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹50,810 Mil. Therefore, L&T Technology Services's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 26.14%.
The historical rank and industry rank for L&T Technology Services's Return-on-Tangible-Equity or its related term are showing as below:
NSE:LTTS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 26.12 Med: 31.92 Max: 55.07
Current: 26.25
During the past 12 years, L&T Technology Services's highest Return-on-Tangible-Equity was 55.07%. The lowest was 26.12%. And the median was 31.92%.
NSE:LTTS's Return-on-Tangible-Equity is ranked better than 73.26% of 2476
companies
in the Software industry
Industry Median: 8.82
vs NSE:LTTS: 26.25
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
L&T Technology Services Return-on-Tangible-Equity Related Terms
L&T Technology Services Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for L&T Technology Services's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:LTTS vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, L&T Technology Services's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
L&T Technology Services Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, L&T Technology Services's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where L&T Technology Services's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 26.14% mean?
L&T Technology Services (NSE:LTTS) has a Return-on-Tangible-Equity of 26.14% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on L&T Technology Services and its competitors. This is 18% below median its historical median of 31.92. Over the past decade, L&T Technology Services' Return-on-Tangible-Equity has ranged from 26.12 to 55.07. According to the industry distribution chart, L&T Technology Services ranks #662 out of 2476 companies in the Software industry, placing it in the top 26.7%.
Is L&T Technology Services' Return-on-Tangible-Equity too high?
L&T Technology Services' current Return-on-Tangible-Equity of 26.14% is 18% below median its 10-year median of 31.92. Over the past 10 years, this metric has ranged from a low of 26.12 to a high of 55.07. The Software industry median Return-on-Tangible-Equity is 8.82. L&T Technology Services' value of 26.14% is 196.4% above this industry median. Based on the distribution chart, L&T Technology Services ranks #662 out of 2476 companies in the Software industry, which is above the industry midpoint. Overall, L&T Technology Services has a GF Score™ of 95/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does L&T Technology Services' Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, L&T Technology Services ranks #662 out of 2476 companies for Return-on-Tangible-Equity. This puts L&T Technology Services in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.82. L&T Technology Services' value of 26.14% is 196.4% above this benchmark. Historically, L&T Technology Services' own Return-on-Tangible-Equity has ranged from 26.12 to 55.07 over the past decade. While the company's 10-year median is 31.92 vs. the industry median of 8.82, L&T Technology Services has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Software company?
The median Return-on-Tangible-Equity among Software companies is 8.82, based on 2,476 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. L&T Technology Services's current Return-on-Tangible-Equity of 26.14% is 196.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on L&T Technology Services and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 8.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L&T Technology Services's current Return-on-Tangible-Equity is 26.14%, which is 18% below median its own 10-year median of 31.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L&T Technology Services stock overvalued right now?
Based on GuruFocus' analysis, L&T Technology Services (NSE:LTTS) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹5,255.06, compared to a current price of ₹3,278.20 — trading 37.6% below its estimated fair value. The current Return-on-Tangible-Equity is 26.14%, which is 18% below median its 10-year median of 31.92 and 196.4% above the Software industry median of 8.82. L&T Technology Services' overall GF Score™ is 95/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For L&T Technology Services (NSE:LTTS), the current Return-on-Tangible-Equity is 26.14% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is L&T Technology Services (NSE:LTTS) Overvalued in 2026?
Based on GuruFocus' analysis, L&T Technology Services stock appears to be undervalued.
The current stock price of ₹3,278.20 is trading 37.6% below its estimated GF Value™ of ₹5,255.06.
GuruFocus considers L&T Technology Services to be Significantly Undervalued.
Key valuation signals for NSE:LTTS:
Return-on-Tangible-Equity: 26.14% (18% below median its 10-year median of 31.92)
GF Value™: ₹5,255.06 vs. price of ₹3,278.20 (37.6% below fair value)
Industry Position: 196.4% above the Software median (#662 of 2476)
No single metric tells the full story. See the NSE:LTTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L&T Technology Services Ltd is a provider of engineering and research services in connection to embedded systems and other engineering support services. The company's operating segments include Mobility, Sustainability and Tech. It derives the majority of its revenue from the Sustainability segment. Geographically, it derives a majority of its revenue from North America, while it also has its presence in Europe, India, and Rest of the world. The services provided by the company are Digital engineering & consulting, Product consulting, Manufacturing engineering, and Plant engineering.
95GF Score
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