Markets India

LTM reported a 14% year-on-year revenue increase to Rs 11,807.6 crore in Q2 FY27, while profit after tax (PAT) remained flat at Rs 1,380 crore. The company declared an interim dividend of Rs 25 per share, highlighting mixed financial performance.

LTM Reports 14% Revenue Growth, Declares Rs 25 Share Dividend Amid Flat PAT

LTM’s revenue rose 13.6% YoY to Rs 11,807.6 crore, driven by 47% growth in Enterprise AI and Business AI segments. The company added 20 new clients, raising its active client count to 729, with $10 million-plus clients up 16 to 109. PAT declined 0.1% to Rs 1,379.9 crore, despite EBIT rising 11.5% to Rs 1,838.1 crore. Management emphasized continued AI adoption and client expansion.

The AI-driven revenue surge underscores LTM’s focus on high-margin technologies, though flat PAT suggests operational or pricing pressures. The 14% revenue growth contrasts with stagnant profits, raising questions about margin sustainability. The company’s $20 million-plus client base grew by six to 51, signaling stronger market penetration.

Shareholders received a Rs 25 interim dividend, but the stock’s 28.17% YTD decline reflects investor concerns over profit stability. LTM’s 88,835 employees faced a 13.3% attrition rate, while management highlighted expanding client tiers, including 172 clients generating over $5 million in revenue.

The company’s strategic focus on AI and client diversification positions it for growth, but balancing cost management with revenue expansion remains critical. LTM’s ability to sustain margins will determine long-term profitability.

LTM will pay the Rs 25 interim dividend within 30 days of declaration to shareholders registered by October 23, 2026. Management reiterated ongoing AI adoption and client expansion efforts.

LTM’s AI-driven revenue growth and dividend payout signal strategic progress, but flat PAT raises questions about margin sustainability. The key uncertainty is whether cost management can improve to support stronger profit growth.

Topics: Finance, Technology, AI, Dividend, Revenue Growth, Corporate Earnings, India Markets, Business Strategy

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Source: ET Markets