L&T Technology ServicesNSE:LTTS 95 ROE % is 20.52% as of Mar. 2026, which is 25% below its 10-year median of 27.46. GuruFocus rates NSE:LTTS with a GF Score™ of 95/100 and a GF Value™ of ₹5,235.19 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,682 Software companies, L&T Technology Services ranks better than 82.55% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Information Technology Services subindustry, L&T Technology Services's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Software Industry
For the Software industry and Technology sector, L&T Technology Services's ROE % distribution charts can be found below:
* The bar in red indicates where L&T Technology Services's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
L&T Technology Services (NSE:LTTS) has a ROE % of 20.52% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on L&T Technology Services and its competitors. This is 25% below median its historical median of 27.46. Over the past decade, L&T Technology Services' ROE % has ranged from 20.38 to 34.68. According to the industry distribution chart, L&T Technology Services ranks #468 out of 2682 companies in the Software industry, placing it in the top 17.4%.
Is L&T Technology Services' ROE % too high?
L&T Technology Services' current ROE % of 20.52% is 25% below median its 10-year median of 27.46. Over the past 10 years, this metric has ranged from a low of 20.38 to a high of 34.68. The Software industry median ROE % is 4.72. L&T Technology Services' value of 20.52% is 334.7% above this industry median. Based on the distribution chart, L&T Technology Services ranks #468 out of 2682 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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' ROE % compare to IBM and ACN?
According to the Software industry distribution chart, L&T Technology Services ranks #468 out of 2682 companies for ROE %. This places L&T Technology Services in the top 17% of its industry — outperforming the majority of peers. The industry median ROE % is 4.72. L&T Technology Services' value of 20.52% is 334.7% above this benchmark. Historically, L&T Technology Services' own ROE % has ranged from 20.38 to 34.68 over the past decade. While the company's 10-year median is 27.46 vs. the industry median of 4.72, 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 ROE % for a Software company?
The median ROE % among Software companies is 4.72, based on 2,682 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. L&T Technology Services's current ROE % of 20.52% is 334.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on L&T Technology Services and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L&T Technology Services's current ROE % is 20.52%, which is 25% below median its own 10-year median of 27.46. 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 ₹5,235.19, compared to a current price of ₹3,322.40 — trading 36.5% below its estimated fair value. The current ROE % is 20.52%, which is 25% below median its 10-year median of 27.46 and 334.7% above the Software industry median of 4.72. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For L&T Technology Services (NSE:LTTS), the current ROE % is 20.52% 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 ₹3,322.40 is trading 36.5% below its estimated GF Value™ of ₹5,235.19.
GuruFocus considers L&T Technology Services to be Significantly Undervalued.
Key valuation signals for NSE:LTTS:
ROE %: 20.52% (25% below median its 10-year median of 27.46)
GF Value™: ₹5,235.19 vs. price of ₹3,322.40 (36.5% below fair value)
Industry Position: 334.7% above the Software median (#468 of 2682)
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
Get the complete analysis for NSE:LTTS
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:LTTS has been successfully added to your 
