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LTM delivered a resilient quarter despite interim challenges with margins surprise

ICICIdirect Research 13 Jul 2026 DISCLAIMER

News: LTM reported revenue of US$ 1,224 mn, up 0.1% QoQ/6.1% YoY (up 0.3% QoQ CC/ 6.4% YoY CC) with muted QoQ performance owing to slowdown in decision making in the India and Middle East and seasonality in manufacturing segment. Segment wise on a QoQ basis in US$ terms, growth was led by Financial Services (34% of the mix) and Technology (erstwhile Hi-Tech excl. Media) (20% of the mix), which grew by 3% and 3.3% while Consumer (erstwhile CPG, RetailPharma, Healthcare and Media) (26.6% of the mix) and Production (erstwhile Manufacturing) (19.4% of the mix) de-grew by 1.1% and 6% respectively. Geography wise, on a YpY basis, all geographies grew with North America (73.9% of the mix), Europe (15% of the mix), RoW (11% of the mix), and North America (72.3% of the mix) reporting growth of 5.4%, 8.4% and 7.5%. Reported EBIT margin was up 36 bps QoQ and 121 bps YoY to 15.5% despite partial wage hikes in Q1, aides by operational efficiencies from New Horizon program and forex benefit. Reported PAT stood at ₹1,469 crore, up 5.9% QoQ/ up 17.1% YoY. The company won a TCV of US$ 1.68 bn, flat QoQ/ up 3.1% YoY. Attrition stood at 13.3%, flat QoQ.

View: LTM delivered a resilient quarter despite interim challenges with margins surprise and sustained deal momentum. The management reiterated that Q2 would be stronger than Q1 and FY27 to be better than FY26 on both revenues and margins front, with strategic initiatives like Fit for Future (cost optimisation), AI-led pivot (BlueVerse) and New Horizons with large deal focus are driving both efficiency and growth. We note that on medium to long term, LTM targets doubling revenue by FY31, implying ~15% CAGR over FY26–31

Impact: Positive

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