LTM Q1 FY27 Results: Revenue At ₹11,608 Crore, Margin Improves

Larsen & Toubro-owned IT services company LTM (formerly LTIMindtree) reported a broadly in-line performance for the quarter ended June 30, 2026, with growth supported by improved margins and healthy execution, although revenue momentum remained subdued.

The company posted a consolidated net profit of ₹1,466 crore for the first quarter of FY27, up 16.9% year-on-year from ₹1,254 crore and 5.3% sequentially from ₹1,392 crore. The profit also came in ahead of Street expectations.

LTM shares ended Friday's session nearly 5% higher at ₹4,037.20 on the National Stock Exchange.

LTM Reports Higher Revenue And Margin Expansion In Q1 FY27

Revenue from operations rose 17.9% year-on-year to ₹11,608 crore, compared with ₹9,841 crore in the corresponding quarter last year. On a sequential basis, revenue increased 2.8% from ₹11,292 crore in the March quarter, marginally exceeding analysts' expectations.

Operating performance also improved during the quarter.

Earnings Before Interest and Tax (EBIT) increased to ₹1,799 crore from ₹1,709 crore in the previous quarter, while the EBIT margin expanded to 15.5% from 15.1%. Both metrics came in ahead of market estimates.

The company's improved profitability reflected disciplined execution during the quarter, with net profit and margins improving despite a relatively modest pace of revenue growth.

Order Inflows Remain Healthy

LTM reported an order inflow of $1.68 billion during the quarter, while its trailing 12-month order book stood at $6.65 billion, supported by continued demand for digital transformation and artificial intelligence-led services.

The company's trailing 12-month attrition rate improved to 13.3%, while employee headcount stood at 87,886 at the end of June.

Management said artificial intelligence continued to gain traction across client engagements, with AI-related business reaching an annualised quarterly run rate of nearly $150 million.

Client spending also showed signs of improvement. Revenue from the company's top five clients increased 4.5% quarter-on-quarter in constant currency terms, while the top 10 clients recorded 4.3% constant currency growth.

During the quarter, LTM hired around 1,300 fresh graduates and said it plans to onboard more than 6,000 freshers during FY27 as it continues to build an AI-ready workforce.

The company also said it is awaiting regulatory approvals for the acquisition of Randstad's IT business, with the transaction expected to close during the third quarter of FY27.

Kotak Neo Research Retains 'Reduce' On LTM As Growth Acceleration Remains Elusive

Kotak Neo Research said LTM delivered good execution during the June quarter but remains hard-pressed for meaningful growth acceleration. The research note highlighted that the company reported muted revenue growth along with a slight improvement in margins. Healthy performance in top accounts and key verticals was offset by weakness in the production vertical due to seasonal factors and continued macro headwinds in the consumer vertical.

According to the note, execution on demand opportunities remains reasonably healthy but is not sufficient to drive significant growth acceleration. Kotak Neo Research also said the stock does not offer considerable upside from current levels.

On the positive side, LTM reported revenue of US$122.4 crore, up 0.1% quarter-on-quarter in US dollar terms and 0.3% in constant currency, broadly in line with our estimates. EBIT margin expanded 40 basis points sequentially to 15.5%, while adjusted net profit increased 10.2% quarter-on-quarter and 16.9% year-on-year, exceeding the brokerage's estimates.

However, Europe and Rest of the World (RoW) markets recorded declines during the quarter. The total contract value (TCV) of deal wins also declined 0.6% sequentially, while discretionary spending trends remained weak.

Based on the quarterly performance, We have increased its FY27E-FY29E earnings per share estimates by 0.3%-1.6% and retained its 'Reduce' rating on LTM and revised its fair value to ₹3,900 from ₹3,700.

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