LTM (LTM IN) – Q1FY27 Result Update – Steady quarter, painting positive outlook for FY27 – ACCUMULATE
Published on 12 Jul 2026
We believe the revenue softness in Q1 should get compensated against the large deal ramp up and continued growth momentum in key verticals beyond Consumer. The strategic re-positioning on horizontal lines and AI-led work translates to USD150m quarterly run-rate in Q1, which is expected to accelerate even further as AI-led services transit from “creation” to “deployment”. On margins, it fairly exceeded our estimates due to internal margin program (fit-for-future/new-horizon) and INR depreciation in Q1, nullified the wage hike impact of ~100bps qoq. The internal deployment of AI is driving incremental efficiency within S&M team, hence limiting additional resource hiring and controlling SG&A expenses. We are keeping our CC revenue unchanged at 6.0%/7.0% YoY in FY27E/FY28E, while passing on Q1 margin beat, and revising our margins upward by 30bps each for FY27E/FY28E. With that our EPS sees an upgrade of ~2.0% each in FY27E/FY28E. We assign 18x PE to FY28E EPS for a TP of 4,200. Full valuations limits further upside. Maintain ACCUMULATE.
