LTM Ltd. share price target

moderate overall revenue growth partially impacted by weakness in Technology & Services (19.0% of the mix) due to seasonal renewal for top client and weakness in Saudi due to Middle East war (~0.6-0.7% impact on revenues) and subdued...

We maintain our BUY rating on the stock.

LTM delivered a steady Q2FY27, with revenue of $1,235mn (+1.1% q/q cc; +5.1% y/y cc) and EBIT margin expanding 10bps q/q to 15.6%.

LTM delivered a steady quarter, with revenue of USD 1.24bn (+1.1% QoQ, +5.1% YoY CC) and EBIT margin of 15.6%, up 10bps QoQ, despite absorbing wage hikes. Growth was dragged due to the Saudi business. AI revenue reached 13.4% of total (+40% YoY), and gross margins on AI work are above traditional services. Three of four verticals grew 7%+ YoY, BFSI returned to YoY growth (+0.4%, +3.1% QoQ), and the first USD 100mn financial services account was added. Order inflow of USD 1.3bn looks soft, but...

About the stock: LTM Ltd (erstwhile LTIMindtree) is the merged entity formed after the merger of erstwhile Mindtree with LTI. It caters to Financial Services, Technology, Consumer and Production. Q1FY27 performance: Revenue at US$ 1,224 mn, up 0.1% QoQ/6.1% YoY (up 0.3% QoQ CC/ 6.4% YoY CC). In rupee terms, revenue stood at 11,608 crore, up 2.8% QoQ/18% YoY. Reported EBIT margin was up 36 bps QoQ/ 121 bps YoY to 15.5%....

LTM reported revenue of USD1.2b in 1QFY27, up 0.3% QoQ in constant currency (CC) vs. our estimate of flat revenue QoQ CC. EBIT margin at 15.5% was above our estimate of 15.1%.

Scaling AI revenue—at a USD 150mn quarterly run-rate (~12% of revenue), strong growth in top 5 (4.5% QoQ USD) and top 6-10 accounts (3.8% QoQ USD) with productivity pass-through behind, and healthy margin expansion in Q1FY27, despite the partial impact of a wage hike and soft revenue growth.

LTM opened FY27 with revenue of $1,224mn (+0.3% q/q, +6.4% y/y cc), EBIT margin of 15.5% (+40bps q/q) despite absorbing a ~100bps wage hike, and a stable order book of US$1.7bn (+3.1% y/y) including 2 large deals.

About the stock: LTM Ltd, (erstwhile LTIMindtree) is the merged entity formed after the merger of erstwhile Mindtree with LTI. It caters to BFSI, Manufacturing, Retail, Health, Media & Hi-tech. LTM at its investor day, unveiled its long-term roadmap under Lakshya 2031, outlining a strategic pivot toward AI-enabled business transformation and outcome-based delivery. The company articulated ambitions of doubling revenue over FY2631 while expanding margins by 200 bps, supported by AI-led services,...

LTM targets 2x revenue growth over FY26-31, i.e., a 15% CAGR vs. 6% YoY growth in FY26 and a 12% CAGR delivered over FY21-26—an ambitious target amid current sector headwinds.

Target doubling USD rev. & EBIT margin expansion by FY31 Expects AI to expand TAM to USD 2.3 tn despite deflation We attended LTM's Analyst Day, the company outlined a five-year strategic roadmap centred on AI-led business transformation, with management targeting a doubling of USD rev. by FY31 (implying ~15% USD revenue CAGR) and a 200bps EBIT margins expansion. The strategy is anchored on three pillars; Invest for (1) Growth, (2) Pivot and (3) Excellence. (1) Growth is expected to be driven by capturing addressable revenue (Platform-oriented and Business-AI-led services), reimagined horizontal service lines,...

LTM is executing well on: improving large deal wins with six deals over USD 100mn in FY26 and being net beneficiary of winning against competition in deal renewals and good recovery in top technology accounts in Q4 with AI-led productivity gain sharing in the base.

The revenue growth (+1.2% QoQ CC) was in-line with our estimates, ex-BFS the growth was broad-based across verticals. The weakness in BFS vertical was attributed to productivity pass-back to one of its marquee clients. The management expects the productivity benefits are largely concluded in Q4, while it anticipates the recovery to be much slower as it progresses through FY27. The timely ramp of earlier wins and recovery within Hi-Tech client should support growth within BFS and CMT verticals in FY27E. The recent India-led NN deal (CBDT) are seeing some deferrals around hardware procurement activities before it gets executed, hence it is less likely to...

We recommend a BUY rating on the stock.

Q4FY26 & FY26 Performance: Revenue at US$ 1,222 mn, was up 1.2% QoQ/8.1% YoY (+1.2% QoQ CC/+7% YoY CC). In rupee terms, revenue stood at 11,291 crore, up 4.7% QoQ/15.6% YoY. Reported EBIT margin declined ~100 bps QoQ to 15.1%. Reported PAT stood at 1,387.3 crore, up 45% QoQ/ up 23% YoY while adj. PAT (ex-one off from new labour code) at 1,449.5 crore, up 3% QoQ/28% YoY. For FY26, revenue stood at US$4,764 mn, up 6% YoY (+5.3% YoY CC). In rupee terms, revenue was at 42,308 crore, up 11.3% YoY. Reported EBIT margin was up ~90 bps YoY to 15.4%. Reported PAT stood at 4,983 crore, up 8.3% YoY while adj. PAT...

4QFY26 softer than expected on both revenue and margins. No clarity on FY27 revenue growth while enunciating ~15% CAGR 5-year goal

LTM reported revenue of USD1.2b in 4QFY26, up 1.2% QoQ in constant currency (CC) vs. our estimate of 1.5% QoQ CC growth. EBIT margin at 15.1% was in line with our estimate of 15.2%.

Reported profit after tax fell 11.7% YoY to Rs. 960cr despite strong revenue growth and margin expansion, impacted by a one-time labour code expense of Rs. 590cr. The company delivered a steady performance on the back of robust execution of its AI strategy, workforce upskilling initiatives and expansion of strategic partnerships. The management remains focused on launching next-generation platforms and industryspecific solutions, as well as enhancing operational efficiency and diversifying its global footprint. Ongoing investments in digital transformation and advanced analytics are expected to support growth, although the pace of improvement will depend on broader market dynamics and client adoption. However, we remain cautious on the rapid...

Q3FY26 Performance: Revenue at US$ 1,208 mn, up 2.4% QoQ/6.1% YoY (up 2.4% QoQ CC/ 5.2% YoY CC). In rupee terms, revenue stood at 10,781 crore, up 3.7% QoQ and 11.6% YoY. Reported EBIT margin declined ~520 bps QoQ to 10.6% while adjusted EBIT margin (ex-one off from new labour code) expanded by ~20 bps QoQ to 16.1%. Reported PAT stood at 959.6 crore, down 31% QoQ/ 12% YoY while...

We recommend a BUY rating on the stock.