LTM Q2 FY27 Results: AI Revenue Hits 13.4% as Deal Wins Slow
- 19th October 2026
- 01:00 PM
- 3 min read
Summary
LTM’s artificial intelligence (AI) revenue grew 40% year-on-year and made up 13.4% of total revenue in the September quarter. Revenue rose 1.7% to ₹11,808 crore, but net profit fell 4.6% to ₹1,398 crore. New deal wins dropped as the company shifted towards shorter AI-led contracts.Mumbai | 19 October 2026
LTM earned a larger share of its revenue from AI in the second quarter of financial year 2027 (Q2 FY27). AI revenue reached 13.4% of total revenue, up from 12.2% in Q1. However, total contract value (TCV), the value of new deals signed, fell to a two-year low.
How Did LTM Perform in Q2 FY27?
LTM’s revenue rose 1.7% quarter-on-quarter (QoQ) to ₹11,808 crore. Earnings before interest and tax (EBIT) grew 2.2% to ₹1,839 crore, and the EBIT margin edged up to 15.6%. Net profit fell 4.6% to ₹1,398 crore because of lower other income. Subcontracting costs remained high.
| Metric | Q2 FY27 | Previous quarter | Change |
| Revenue | ₹11,808 crore | ₹11,608 crore | +1.7% |
| EBIT | ₹1,839 crore | ₹1,799 crore | +2.2% |
| EBIT margin | 15.6% | 15.5% | +10 basis points |
| Net profit | ₹1,398 crore | ₹1,466 crore | -4.6% |
In US dollar terms, revenue stood at US$1.24 billion, up 1.0%. Constant currency (CC) growth, which removes the effect of exchange-rate movements, was 1.1%.
How Much Did the Middle East Hurt Growth?
The Middle East business cut quarterly growth by around 60–70 basis points, and the Saudi business remained a drag. Management said sequential CC growth would have been 1.7–1.8% without this impact. Revenue from the top 5, top 10 and top 20 clients fell 1.6%, 0.9% and 0.2% QoQ.
| Segment | QoQ CC growth |
| Production | 3.7% |
| Banking, financial services and insurance (BFSI) | 3.1% |
| Consumer | 0.3% |
| Technology & Services | -4% |
Technology & Services declined because of seasonal renewals and the Middle East impact. Production benefited from a recovery in large deals.
Why Are LTM’s Deal Wins Falling?
Order inflow fell to its lowest level since Q2 FY25, with a book-to-bill ratio of 1.0x. This ratio compares new orders with revenue earned. Management said the lower TCV reflects a planned shift towards shorter AI-led deals that turn into revenue faster.
PL Capital Research notes that most Q2 deal wins were AI-centric, short-tenure and incremental. LTM also won a client worth over US$100 million in Financial Services. The company plans to start reporting annual contract value (ACV) to give clearer visibility into its business.
How Does LTM’s AI Revenue Compare With Peers?
LTM’s 13.4% share was the highest of the three companies below. Each company measures AI revenue on a different base.
| Company | Share of revenue | |
| LTM | 13.4% of quarterly revenue | |
| TCS | 10.3% of annualised revenue | |
| HCLTech | 5.9% of quarterly revenue |
Outlook: What Does LTM Expect for H2 FY27?
Management expects stronger growth in the second half (H2) of FY27 than in the first half (H1). It also expects:
- A recovery in the Hi-tech segment in Q3.
- Technology & Services to return to normal in Q3, supported by revenue from recent wins.
- Flat margins for the full financial year.
The company also aims to bring organic FY27 growth closer to FY26 levels.
LTM added around 1,700 freshers in Q2, up from around 1,300 in Q1. Approvals for the Randstad acquisition remain on track for Q3.
Stay updated on Indian and global equity and commodity markets on PL Capital.
Disclaimer: Investments in securities market are subject to market risks, read all the related documents carefully before investing.
This is a knowledge-sharing initiative by PL Capital. The information provided is only for educational purposes and should not be considered as financial advice & has no influence on the investment/trading decisions of any investors.
For detailed disclaimers/disclosure and Mandatory terms and conditions please visit our website https://www.plindia.com/regulatory-content/
