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Informist, Saturday, Jul. 11, 2026

By Eshitva Prakash and Shakshi Jain 

MUMBAI – LTM Ltd.'s management is confident that the company will report higher revenue growth in 2026-27 (Apr-Mar) than it did in the previous financial year due to continued operational efficiencies, strong growth from key segments, and healthy financial metrics of its top clients. LTM is also expected to report a further rise in revenue and in earnings before interest and tax margin for the September quarter as delayed ramp-ups get finished, its management said in a conference call with analysts after the company's June quarter earnings.

"In the short term, I see good traction in all the segments that I called on, especially some of our large segments which we are very engaged with," a top executive of the company said. LTM expects further margin expansion in its financial services segment, which is the largest contributor to the company's revenue among other verticals. 

Additionally, the company's management does not expect further revenue drag from its consumer segment going forward. The consumer segment was hit in the June quarter as it was unable to ramp up its deal with the Indian Tax department due to hardware shortages. This, the company attributed to the war in West Asia, which disrupted supply chains across the world. "I'm assuming now that the (hardware) shipments will accelerate, so I don't expect that trend to continue," an executive said. "I'm positively optimistic about consumer (vertical's) growth," he added for good measure.  

The company expects to continue its sales momentum in the second half of the current financial year. "Financial services (segment) also is back to a sequential growth and it's showing a great demand traction," the company's management said. Additionally, the company is also optimistic about its prospects in the US as it continues to bet on growth in the region's financial services segment, and the technology and services segment. Its management also allayed worries about exposure to West Asia, saying that LTM draws just 3% of its revenue from the region. 

The company attributed the benign rise in expenses and an expansion in EBIT margin to its various strategies, particularly its New Horizon initiative. "Our profitable growth journey in the AI (artificial intelligence) era is off to a good start... our New Horizon programme continues to deliver significant progress, contributing to the overall margin expansion," Venugopal Lambu, chief executive officer and managing director of the company, said. The company expects its selling, general, and administration expenses to remain at 11.0–11.5%. "I think we have been able to achieve efficiencies, which have caused this change to be more sustainable," an executive said.

LTM's does not expect a sharply negative impact on its margin due to the acquisition of Randstad's information technology and consulting services business in France, Germany, Belgium, Luxembourg, and Australia. It has already filed required applications with various regulators across countries. Despite this hefty addition to its operations, the company does not expect a significant drop in its margins after the acquisition. "We should be able to deliver similar margins as last year or better... upon consolidation, we should be able to deal with the initial impact of the merger and acquisition and, after that, the synergy should start kicking in," the company's management said. 

The company will continue its policy of hiring a large number of freshers in the upcoming quarters. "In this quarter itself, we have taken freshers, about 1,308 freshers have been added," LTM's management said. "We will continue to add freshers as we go along. I think, you know, from our strategy point of view, it is important to continue to build the AI-ready talent and to that extent, this initiative will continue," an executive said. He added that the company will likely add a similar number of freshers every quarter. 

Speaking about possibilities of AI tools leading to further revenue deflation for IT services companies, the company's management said it is no longer worried, at least for larger orders. "I think that chapter is behind us," an executive said. "What happens in the smaller accounts... is really not material," he added. "So, I don't see that (revenue deflation) playing out for us this year. In fact, this year, our focus is a lot on sort of grabbing all the early opportunities that is visible in the AI era," he said.

For the quarter ended June, LTM reported a consolidated net profit of INR 14.66 billion on revenues of INR 116.08 billion. Friday, shares of the company ended nearly 5% higher than Thursday at INR 4,037.20 on the National Stock Exchange.  End

Edited by Akul Nishant Akhoury

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