LTM Q2 FY27 results: net profit down 0.1% to ₹1,380 crore, revenue up 13.6%

How did LTM perform in Q2 FY27?

LTM reported consolidated revenue of ₹11,808 crore for Q2 FY27, up ₹1,413 crore or 13.6% from Q2 FY26 and ₹199.60 crore or 1.7% from Q1 FY27. EBITDA was ₹2,093 crore, up 8.5% year on year and 1.6% sequentially, while the EBITDA margin was 17.7% against 18.6% in Q2 FY26 and 17.8% in Q1 FY27.

Consolidated net profit was ₹1,380 crore in Q2 FY27, compared with ₹1,381 crore in Q2 FY26 and ₹1,469 crore in Q1 FY27. Basic EPS was ₹47.15, compared with ₹47.28 a year earlier and ₹49.46 in the previous quarter. On a standalone basis, revenue was ₹11,276.4 crore and PAT was ₹1,351.9 crore, with revenue up 13.1%.

What changed in LTM's costs and profit?

Total expenses were ₹10,039 crore in Q2 FY27, up ₹1,224 crore or 13.9% from Q2 FY26. Employee cost rose ₹614.50 crore or 9.5% to ₹7,082 crore, while other expenses increased ₹635.60 crore or 31.8% to ₹2,632 crore. Finance costs edged up ₹0.60 crore to ₹69.90 crore, and depreciation fell ₹26.80 crore to ₹255.20 crore. No exceptional item was reported.

Other income fell ₹208.90 crore or 69.5% to ₹91.50 crore from Q2 FY26, while tax expense declined ₹18.20 crore or 3.7% to ₹479.80 crore. These figures accompanied a ₹19.50 crore or 1.0% fall in PBT to ₹1,860 crore and a ₹1.30 crore or 0.1% fall in PAT to ₹1,380 crore. Against Q1 FY27, other income fell ₹163.90 crore, while total expenses rose ₹154.40 crore.

How did the first half of FY27 go?

For the first half of FY27, LTM reported revenue of ₹23,415.6 crore, up ₹3,180.7 crore or 15.7% from H1 FY26. Total income rose 13.5% to ₹23,762.5 crore, while PBT increased 6.5% to ₹3,838.1 crore. PAT rose 8.1% to ₹2,848.5 crore, and EPS increased 7.8% to 96.6.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹38,466.7 crore, compared with ₹37,196.0 crore at 31 March 2026, while total equity was ₹25,942.5 crore against ₹24,107.7 crore. Borrowings remained at ₹0.00 crore, and cash was ₹2,084.0 crore compared with ₹2,331.1 crore. Trade receivables were ₹7,410.9 crore, and trade payables were ₹2,299.7 crore.

H1 FY27 operating cash flow was ₹1,698.9 crore, compared with ₹2,215.6 crore in H1 FY26. Investing cash flow was -₹36.6 crore against -₹706.4 crore, while financing cash flow was -₹1,911.1 crore against -₹1,758.4 crore. Capital expenditure was ₹450.5 crore, compared with ₹458.7 crore in the earlier period.

How has LTM done over the last 8 quarters?

Revenue has risen year on year in each of the last eight quarters and reached ₹11,807.6 crore in Q2 FY27. It was ₹9,660.9 crore in Q3 FY25, the earliest quarter in the reported series. PAT reached a peak of ₹1,468.6 crore in Q1 FY27 before falling to ₹1,379.9 crore in Q2 FY27; its low was ₹959.6 crore in Q3 FY26.

The EBITDA margin peaked at 18.6% in Q2 FY26 and Q3 FY26, compared with 16.3% in Q4 FY25, the lowest in the series. It eased to 17.5% in Q4 FY26, rose to 17.8% in Q1 FY27 and was 17.7% in the latest quarter, showing a broadly stable margin after the earlier recovery.

Which businesses drove the quarter?

Financial Services reported revenue of ₹4,091.9 crore and EBIT of ₹639.5 crore, with an EBIT margin of 15.6%. Consumer reported revenue of ₹3,125.0 crore and EBIT of ₹485.0 crore, with an EBIT margin of 15.5% against 19.4% for Production, which reported revenue of ₹2,354.6 crore and EBIT of ₹457.0 crore. Year-ago segment figures were not provided, so segment growth could not be stated.

What else did the company announce?

The board approved LTM's unaudited standalone and consolidated results for the quarter and half-year ended 30 September 2026, and noted the Limited Review Reports issued by Deloitte Haskins & Sells. It declared an interim dividend of INR 25 per equity share of Re. 1 each, payable within 30 days to shareholders on the record date of 23 October 2026.

The board also noted the completion of Sanjeev Aga's tenure with effect from the close of business on 8 November 2026. It approved the appointment of Anupam Kumar as Additional Director, a Non-Executive Non-Independent Director liable to retire by rotation, with effect from 16 October 2026, subject to shareholder approval.

What did LTM's management say?

Management said H2 FY27 was expected to be better than H1 FY27, while full-year FY27 growth was targeted close to the FY26 growth rate. It maintained guidance for similar consolidated EBIT margins, including M&A, and targeted high-single-digit to double-digit YoY growth for FY28. CEO and MD Venu Lambu said: “Three out of four verticals we have are actually growing above 7%.”

Management said AI revenue was 13.4% of total revenue and rose 40% YoY, while cumulative AI revenue rose 47% YoY. It said BFSI returned to YoY growth of 0.4%, a new $100M+ BFSI client was added, and order inflow was USD 1.3B. The company expects the Randstad Digital acquisition to close by the end of Q3 FY27.

CFO Vipul Chandra said the company was still working towards maintaining margins at similar levels to the previous year. Management also identified regional conflict affecting Saudi and Middle East revenue, FX hedging losses below EBIT, pricing pressure in traditional services and gratuity funding outflows as risks to near-term operating cash flow and PAT conversion.

How did LTM shares react?

LTM's shares fell 2.8% on the reaction day from the pre-results close. By the next day's close, the stock was down 2.1% from that pre-results close, and by the fifth session it was down 7.5%. The Computers - Software & Consulting industry median fell 1.5% on the reaction day, 1.7% by the next close and 3.8% by the fifth session.

LTM underperformed the industry median by 1.4 percentage points on the reaction day, 0.4 percentage points by the next day's close and 3.7 percentage points by the fifth session. Earlier results-day moves included rises of 1.8% on 11 July 2026 and 3.3% on 17 July 2024, and falls of 4.7% on 23 April 2026 and 6.3% on 19 January 2026.

How did other Computers - Software & Consulting companies do?

Thirty-three Computers - Software & Consulting peers that had filed for the quarter were compared with LTM. Their median revenue growth was 12.9%, while LTM's revenue growth was 13.6%. Of the other companies, 16 grew faster than LTM and 17 grew slower than LTM.

Twenty-one of the 32 peers for which profit was compared reported higher profit. The peer comparison was based on results available as of 4 November 2026.