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LTM: Positioning for AI-led Non-linear Growth

ICICIdirect Research 05 Jun 2026 DISCLAIMER

LTM outlined an aspiration of doubling revenue by FY31, implying ~15% CAGR over FY26–31. Management indicated that acquisitions could account for ~15–17% of incremental revenue generation over the period. It is also targeting 200bps of EBIT margin expansion, driven by higher productivity, operating leverage, and an increasing mix of platform and AI-led revenues
Management acknowledged that AI-driven productivity and automation will contract the traditional technology services spend by 20% to 25%, (a reduction of roughly US$ 0.3 trillion). This shrinkage is drastically offset by an influx of new spending pipelines: US$ 0.5 trillion from platformised IT services, and US$ 0.8 trillion stemming from Business AI and AI-led digital engineering. Net Outcome is that overall, TAM would expand from US$ 1.3 trillion to 2.3 trillion
It is only among the three companies (including Persistent, Coforge, which is talking of double-digit revenue growth in IT. The company’s focus on outcome-linked commercial models, domain depth, and platformisation provides a differentiated narrative versus peers. Sustained conversion of large deals, AI-led revenue visibility, and delivery productivity will be key monitorable
We have BUY rating, at 21x P/E on FY28E EPS, with a target price of ₹4,850

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