Latent View Analytics (LATENTVI IN) – Q2FY27 Result Update – Balancing business mix, Tech overhang persists – BUY
Published on 03 Nov 2026
LATENTVI returned to sequential growth in Q2FY27, with USD rev. rising 2.0% QoQ and adj. EBITDA margin improving 30bps to 20.7%. Growth was led by Industrials (+21.4% QoQ), driven by expansion in automotive and auto-component clients. FS and CPG & Retail grew 3.5% and 2.7%, respectively, while Tech segment (55% of rev.) remained subdued, declining 0.3% QoQ amid client consolidation and budget rationalization. Although management believes Tech segment is nearing the bottom, but the renewal cycle remains a key monitorable for near term recovery. Margin expansion was supported by GTM and marketing cost rationalization, which more than offset the impact of higher bench and wage costs. Management reiterated its 21–22% medium-term margin aspiration while continuing to invest in AI and Databricks capabilities. We value the stock at a PE of 21x (earlier 22x) of Sept. 2028 earnings to arrive at TP of INR 270 (earlier INR 320). Inexpensive valuations and cash-rich (~30% of MCap) balance sheet limit downside, maintain BUY.
