L&T Technology Services sells its Smart World unit for ₹452 crore to bet on AI
Under its five-year Lakshya plan, LTTS sold its Smart World unit — 9.63% of revenue — to refocus on AI-led engineering intelligence and digital manufacturing.
What was changed
On 27 March 2026, L&T Technology Services agreed to sell its Smart World and Communication (SWC) division to AMI Paradigm Solutions, a special purpose entity set up by ParadigmIT Technology Services, in a ₹452 crore slump sale subject to working-capital and debt adjustments, expected to close on or before 30 September 2026. The buyer is a joint venture between ParadigmIT and AM Intelligence Labs, promoted by the founders of the Greenko Group.
The divestment executes the five-year Lakshya plan under which CEO Amit Chadha is reframing LTTS's strategic bets around engineering intelligence (EI), software and digital manufacturing in mobility, sustainability and tech. He framed the sale as pursuing long-term value creation: 'We believe these will drive faster growth opportunities for LTTS.'
The unit being sold was no sideline: SWC — the smart and safe and communications segments, with related contracts, IP and employees — generated ₹1,027.95 crore in FY25, 9.63% of consolidated revenue, on a net worth of ₹445.89 crore (7.31% of the company's). The buyers want exactly that business as a layer for domain-specific AI: ParadigmIT promoter Sridhar Gadhi described building an AI-led platform with sovereign architectures for governments and enterprises.
Why it worked
Lakshya, LTTS's five-year strategy, named engineering intelligence, software and digital manufacturing as the pillars — and smart-city communications work was not among them.
Advances in clean energy, high-performance computing and accelerator chipsets were unlocking AI compute that made domain-specific intelligence the growth market the buyers and seller both pointed to.
SWC was profitable and sizeable — 9.63% of revenue — so it fetched ₹452 crore, a clean exit price while the business still had value to a buyer with a sharper thesis for it.
The buyer side was constructed for the deal: an AMI Paradigm Solutions SPV, backed by Greenko founders' AM Intelligence Labs, existed to advance AI for public systems and critical infrastructure.
What can be applied
A pivot is also a subtraction: naming your next pillars tells you which healthy business no longer belongs — and selling it while it still earns funds the turn.
Aftermath
The transaction was announced 27 March 2026 with closing expected on or before 30 September 2026, subject to conditions. The buyers plan to merge SWC into an AI-led platform focused on domain-specific models, sovereign AI architectures and outcome-driven systems for governments and enterprises. No post-close results for LTTS were in the source.