Latent View Analytics (LATENTVI IN) – Q3FY26 Result Update – Consistent growth delivery while margins expand meaningfully – BUY
Published on 03 Feb 2026
The revenue performance (+5.7% USD QoQ) was broadly in line with our estimates (+6.1% QoQ), attributed to continued momentum within Fin. Services with slight uptick in Technology. The growth within Consumer/Retail was muted sequentially in Q3 on account of unanticipated deferral of follow-on work. However, the impact is temporary in nature and should resume as it progresses through early FY27, the deal pipeline remains strong within Consumer/Retail space. The program renewals were encouraging in Q3 that has further supported by incremental focus on mining and hunting the strategic potential accounts. Databricks partnership is progressing well, and it is expected to mark USD16-17m revenue run-rate by FY26E, while it re-iterated its aspiration to achieve USD50m by FY28. The engagement is supportive in terms of funding POCs, which translated into 30+ joint wins and improved conversion rate (~25-30%) from pilots to production. Margin execution remains strong in Q3, although Forex contributed 230bp QoQ improvement, one-off charges of 70bps (severance pay) would be a tailwind in Q4. We are revising our USD revenue growth to 20.6%/21.4% (earlier 21.1%/21.6%) due to revenue miss, keeping our margin estimates unchanged for FY27E/FY28E. The stock is currently trading at 37x/29x FY27E/FY28E EPS. We assign 40x multiple to FY28E EPS, arriving at a target price of Rs. 630. Retain BUY.
