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Informist, Tuesday, Apr. 21, 2026

 

By Shakshi Jain

 

NEW DELHI – LTM Ltd. is expected to post a sequential decline in its adjusted net profit for the March quarter, despite a slight rise in its revenue, largely because of the annual salary increment for about 50% of its workforce. Meanwhile, the momentum in sequential revenue growth is expected to have continued in the reporting quarter on the back of strong order book signings and deal ramp-ups, brokerages said.

 

If analysts' consensus estimates hold, the company's bottom line would decline sequentially for a second consecutive quarter, although this decline would be lower than in the trailing quarter. Its sequential top-line growth for Jan-Mar would be slightly better than that for the December quarter.

 

LTM's consolidated net profit for the reporting quarter is expected to fall over 9% sequentially to INR 14.14 billion, excluding exceptional items. This is according to the average of estimates from 17 brokerages. Including the impact of the one-time cost of INR 5.90 billion reported for the December quarter, the company's bottom line for the reporting quarter is seen rising almost 46%.

 

On a year-on-year basis, LTM's bottom line for the March quarter is expected to improve by over 25%. The highest net profit estimate is INR 14.77 billion by JM Financial Securities Pvt. Ltd. while the lowest is INR 13.30 billion by Nomura Financial Advisory and Securities (India) Pvt. Ltd.

 

In terms of revenue, the Larsen & Toubro subsidiary is expected to report over 4% sequential growth and a near 15% annual growth for the reporting quarter to INR 112.31 billion, as per the average of estimates. The highest top-line estimate is INR 113.85 billion by Equirus Securities Pvt. Ltd. and the lowest is INR 110.12 billion by Dolat Capital Market Pvt. Ltd. 

 

For the December quarter, LTM had reported a consolidated net profit of INR 9.71 billion on revenue of INR 107.81 billion. In the absence of the one-time cost reported for the quarter on account of the new labour codes, its bottom line would have been around INR 15.61 billion, the change is tax notwithstanding. For the year-ago March quarter, the technology consulting and digital solutions company had reported consolidated net profit of INR 11.29 billion on revenue of INR 97.72 billion. 

 

For the full financial year 2025-26 (Apr-Mar), LTM is expected to report a near 12% year-on-year increase in its consolidated bottom line to INR 51.38 billion, according to the average of estimates from four brokerages. Its top line for the 12 months is expected to grow almost 11% on year to INR 421.81 billion.

 

The financial services segment likely remained under pressure during the March quarter while the hi-tech segment saw a robust growth, Kotak Securities Ltd. said. Indsec Securties and Finance Ltd. said, "BFSI (banking, financial services, and insurance segment) is likely to bottom out this quarter with a gradual recovery. Consumer segment is expected to remain steady." 

 

In a conference call with analysts post disclosure of the December-quarter results, the company management had indicated that the drag from artificial intelligence-led productivity initiatives was confined to one top account in the BFSI sector, expected to bottom out in the March quarter. 

 

Brokerages expect the company to report a sequential constant currency revenue growth of 1% to 2% for the March quarter, which is slightly lower than the 2.4% rise reported for the December quarter. ICICI Securities has reduced its sequential constant currency revenue growth estimate to 1.3% from 2% at the beginning of the March quarter due to deferrals in billings tied to the West Asia market amid the military conflict there and a delay in ramp-up of the deal with the Central Board of Direct Taxes due to a delay in the delivery of hardware components.

 

In dollar terms, the company is expected to post revenue of $1.23 billion for the reporting quarter, as per the average of estimates from 14 brokerages. This is slightly higher than the $1.21 billion reported for the December quarter.

 

DEALS, MARGIN

Most brokerages expect the company to report total contract value in the range of $1.5 billion to $1.6 billion for the March quarter, in line with the trend seen in the past four quarters. For the December quarter, the company had reported order inflows worth $1.69 billion. "Confidence comes from a healthy pipeline and expected large deal signings in 4Q (Jan-Mar," Nirmal Bang Equities Pvt. Ltd. said. 

 

In February, LTM, formerly LTIMindtree, had announced a multi-year contract valued at $100 million from a Europe-based medical technology company that provides hearing solutions. 

 

The company's earnings before interest and tax margin for the reporting quarter are expected to contact sequentially by 80 basis points to 15.3%, according to the average of estimates from 13 brokerages. A 100-basis-point sequential impact from wage hikes is expected to be partially offset by operational efficiencies and the depreciation of the rupee against the dollar, brokerages said. 

 

LTM will announce its March quarter earnings on Thursday. Investors await the management's commentary on demand and deal pipelines, spending in top accounts, strategic priorities under the chief executive officer, performance of the banking and hi-tech verticals, likely price deflation due to artificial intelligence, technology budgets of clients for calendar year 2026, visibility around ramp-up of the CBDT deal, impact of the conflict in West Asia, and the overall outlook for FY27. 

 

On Tuesday, shares of LTM ended almost 1% higher at INR 4,757.90 on the National Stock Exchange. The stock is down almost 26% since the company reported its December quarter earnings on Jan. 19, when it also touched its 52-week high.

 

Of the 18 research reports on the company available with Informist, 11 have a 'buy' recommendation on the stock and five have a 'hold' call and two a 'sell' recommendation. The average target price of the 'buy' recommendations is INR 7,119 and that of the 'hold' recommendations is INR 6,353. This is almost 50% and nearly 34% higher than the current market price, respectively.

 

Following are the Jan-Mar earnings estimates, in INR billion, for LTM from 17 brokerages, in descending order of net profit estimates:

 

Brokerage Firm	Net Sales	Net Profit	Revenue ($)	EBIT margin (%)
JM Financial Institutional Securities Pvt Ltd	112.28	14.77	1.23
HDFC Securities Ltd	112.29	14.71	1.23	15.5
Nirmal Bang Equities Pvt Ltd	112.31	14.58		15.5
ICICI Securities Ltd	113.15	14.52	1.23	15.1
Nuvama Wealth Management Ltd	112.22	14.48	1.23	15.1
Anand Rathi Share and Stock Brokers Ltd	112.08	14.33	1.23	15.4
Centrum Broking Ltd	112.50	14.30		15.6
Motilal Oswal Financial Services Ltd	112.00	14.28
Dolat Capital Market Pvt Ltd	110.12	14.26	1.2	15.6
Prabhudas Lilladher Pvt Ltd	111.60	14.20	1.22	14.9
Equirus Securities Pvt Ltd	113.85	14.14	1.23	15.6
Elara Securities (India) Pvt Ltd	111.10	13.86	1.22
Kotak Securities Ltd	113.53	13.77	1.23	15.4
IDBI Capital Market Services Ltd	112.19	13.69	1.23	15.3
Emkay Global Financial Services Ltd	113.36	13.67	1.23
Indsec Securities and Finance Ltd	112.80	13.50	1.22	14.7
Nomura Equity Research	111.85	13.30	1.22	15.2
Average	112.31	14.14	1.23	15.3

 

End

 

US$1 = INR 93.50

 

Edited by Akul Nishant Akhoury

 

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