More Stories

Informist, Thursday, Jul. 9, 2026

By Arya S. Biju

MUMBAI – Improved utilisation coupled with operational efficiencies are expected to drive LTM Ltd.'s bottom line for the June quarter despite a low-single-digit rise in its revenue, according to analysts. The impact of wage hikes during the quarter is also expected to be limited by benefits from depreciation of the rupee against the dollar. During the quarter, the rupee depreciated 0.2% against the dollar.

Robust growth in sales from the banking, financial services, and insurance vertical and the technology, media, and communications segment are expected to drive the company's top line for the quarter. However, weak sales from the travel and hospitality vertical and the West Asia business due to the US-Iran war are likely to limit the growth in consolidated revenue for the quarter, according to analysts.

The information technology services and consulting company's consolidated net profit for the reporting quarter is expected to rise nearly 9% sequentially to INR 14.48 billion, according to an average of estimates from 15 brokerages. The estimated sequential growth is lower than the 43% rise reported in the March quarter, but better than the fall of around 31% reported in the December quarter. On year, the company's bottom line for the June quarter is expected to rise over 15%.

The highest estimate for the company's bottom line for the quarter is INR 15.33 billion from Nuvama Wealth Management Ltd. and the lowest estimate is INR 13.80 billion from Nirmal Bang Equities Pvt. Ltd. The growth in the company's bottom line for the quarter is expected to be limited by a foreign exchange loss of INR 1.3 billion, Kotak Securities Ltd. said.

"Mid-tier IT companies have largely locked in FY2027 P&Ls (profit and loss statements) through hedging, typically in the USD/INR range of 90-92. Currency benefits will therefore not flow through fully to net profit, creating a visible divergence between operating performance and bottom-line growth in FY2027E," Kotak Securities said. As of March, LTM had the largest forex hedge book, with outstanding hedges of $4.3 billion at an average rate of INR 92.7 a dollar, according to the report.

LTM's consolidated revenue for the quarter is expected to grow over 2% on quarter to INR 115.62 billion, according to the average of 15 estimates. On year, the company's top line is likely to grow over 17%. The highest estimate for the company's top line is INR 118.95 billion from Axis Securities Ltd. and the lowest is INR 112.63 billion from Nirmal Bang.

In dollar terms, the company's revenue is expected to remain largely unchanged on quarter at $1.22 billion, according to an average of 10 estimates. In constant currency terms, the company's revenue is expected to be largely flat to 1% up, according to estimates from nine brokerages. "LTM is expected to report flat QoQ CC (quarter-on-quarter constant currency) revenue growth in 1QFY27 (Apr-Jun), as the roll-off of product pass-through revenues and temporary Middle East (West Asia) softness offset steady services growth," Motilal Oswal Financial Services Ltd. said. The company's earnings before interest and tax margin for the quarter is expected to be 15.1–15.4%, according to estimates from seven brokerages. In the March quarter, the company had reported an EBIT margin of 15.1%.

Several brokerages expect the company to report a total contract value in the range of $1.5 billion to $1.7 billion for the June quarter, in line with the trend seen in the past five quarters. In the March quarter, the company had reported order inflows worth $1.69 billion.

LTM, formerly LTIMindtree, will announce its June quarter earnings Saturday. Investors will watch for the management's commentary on revenue and margin outlook for the financial year 2026-27 (Apr-Mar), deal wins and project pipeline, and updates on hiring plans amid the rise of artificial intelligence. Comments on any impact on technology spending and sales cycle because of increased macroeconomic and geopolitical uncertainties will also be monitored.

Any updates on reassessment of hedging policy in the light of potential foreign exchange losses in FY27 will also be watched, Kotak Securities said. Further, management comments on demand outlook across segments and expected revenue deflation from AI will be monitored.

Thursday, shares of LTM ended at INR 3,854.40 apiece on the National Stock Exchange, up 1.6% from Wednesday. The stock has fallen almost 15% since the company reported its March quarter earnings on Apr. 23 and is down around 50% from its all-time high of INR 7,588.80 hit on Jan. 4, 2022.

Of the 18 research reports on the company available with Informist, 13 have a "buy" or equivalent recommendation on the stock, four have a "hold" or equivalent call, and one has a "sell" recommendation. The average target price for the "buy" recommendations is INR 5,585 per share and that for the "hold" recommendations is INR 4,485. This is around 45% and over 16% higher, respectively, than the stock's current market price.

Following are the Apr-Jun earnings estimates, in INR billion, for LTM from 15 brokerages, in descending order by net profit estimate:

End

US$1 = INR 95.3875

Edited by Shubhayan Bhattacharya

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.