Yes, that's a London Scottish Hodden Grey patch. Their Permanent Staff Instructors (PSI's) traditionally came from the Gordons or The Highlanders post amalgamation until the mid-2000's and now come from the Guards.
Your first photo appears to show some scroll shaped impressions near the bottom of the patch so if the lower lugs were cut off The Highlanders badge (this is certainly done to the Royal Regt of Scotland badge as the lower lugs are uncomfortable) the 2 holes could be for the upper lugs but I’d still expect to see another 2 holes for the crown and thistle worn between the antlers.
Of course, if a London Scottish badge fits the two holes in the patch then all I’ve written above is probably irrelevant. Not sure when the unit started wearing a royal blue toorie again but during the 1990’s and early 2000’s they wore a plain khaki toorie.
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