L&T Technology Services to Divest SWC Business to AMI Paradigm in Rs 452 Crore Deal

L&T Technology Services announced the divestment of its Smart World and Communication business unit to AMI Paradigm Solutions Private Limited, a special purpose entity established between ParadigmIT Technology Services Private Limited and AM Intelligence Labs Private Limited, promoted by the founders of the Greenko Group. As of March 25, 2026 L&T Technology Services' share price is closed at Rs 3200.  

L&T Technology Services Divests SWC Business to AMI Paradigm Solutions

L&T Technology Services has decided to sell its Smart World and Communication business to AMI Paradigm Solutions through a binding Business Transfer Agreement signed on March 25, 2026. In simple terms, the company is stepping back from this business and handing it over to a buyer who is better placed to grow it. AMI Paradigm, which focuses on using AI for government systems and critical infrastructure, sees the Smart World and Communication business as a natural fit for what it is building. The deal is a cash transaction valued at Rs 452 crore, subject to normal working capital, net debt and other adjustments. The transaction is expected to be closed on or before September 30, 2026. 

The company has a 5-year plan called the Lakshya Plan, and at the heart of it is a sharp focus on Engineering Intelligence, an area the company believes will drive its next phase of growth. By letting go of the Smart World and Communication business, the company frees up both capital and attention to double down on Engineering Intelligence, along with its three core segments of Mobility, Tech and Sustainability.

Management Commentary

Amit Chadha, CEO and Managing Director, L&T Technology Services, said, "As we pursue long-term value creation for our stakeholders, we are reframing our strategic bets, with EI, Software and Digital Manufacturing as key focus pillars in our select segments of Mobility, Sustainability and Tech. We believe these will drive faster growth opportunities for LTTS. AMI Paradigm, by integrating SWC's public sector capabilities, will strengthen its AI offerings, while creating a robust platform for Smart World employees and delivering enhanced value to our existing clients."

Anil Chalamalasetty, Chairman, AM Group, said, "Advances in clean energy, high-performance computing infrastructure, and accelerator chipsets are unlocking unprecedented AI compute power. The real transformation, however, lies in translating this foundation into domain-specific intelligence and real-world applications. The Smart World and Communication business represents this critical layer, operationalising AI for mission-critical systems across governments, cities, utilities, transport networks, and enterprises, enabling more autonomous, data-driven infrastructure and decision-making."

Sridhar Gadhi of ParadigmIT added, "Over the past two years we have been investing in the operating layer for enterprises and public systems. With the coming together of ParadigmIT and the Smart World business, we would be building an AI-led platform focused on domain-specific models, sovereign AI architectures, and outcome-driven systems for governments and enterprises."

About L&T Technology Services Limited

L&T Technology Services Limited is a global leader in AI, Digital and Engineering Research and Development services and a listed subsidiary of Larsen and Toubro. The company offers design, development, testing and sustenance services across products and processes, serving 69 Fortune 500 companies and 57 top ER&D companies across industrial products, medical devices, transportation, telecom and hi-tech and process industries. The company has over 23,635 employees across 22 global design centres, 31 global sales offices and 100 innovation labs as of December 31, 2025.

About AMI Paradigm Solutions

AMI Paradigm Solutions is a joint investment of AM Group and ParadigmIT. The founders of Greenko Group promote AM Group and are building platforms across molecules, materials and AI technologies to enable industrial decarbonisation. ParadigmIT specialises in Government to Citizen services, Unified Multi Agent Platform and Sovereign AI, with over two decades of experience in delivering national-scale critical governance projects.

The SWC unit being divested reported revenue of Rs 1,027.95 crore in FY 2024-25, accounting for 9.63 per cent of LTTS's consolidated revenue, while its net worth stood at Rs 445.89 crore, representing 7.31 per cent of LTTS's net worth as of March 31, 2025.

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Disclaimer: The article is for informational purposes only and not investment advice.