LTM Reports 13.6% Revenue Growth to ₹11,808 Crore in Q2 FY27 and Declares ₹25 Interim Dividend

LTM Reports Double-Digit Revenue Growth in September Quarter

LTM Limited, formerly known as LTIMindtree, reported consolidated revenue of ₹11,807.6 crore for the second quarter of financial year 2026–27, representing a 13.6% increase from the corresponding period of the previous year.

The Mumbai-headquartered IT services company announced its financial results on October 16, 2026, reporting broad-based growth across several industry segments and geographic markets.

Revenue increased 1.7% sequentially from the June quarter, while earnings before interest and tax rose 11.5% year-on-year to approximately ₹1,838 crore.

However, net profit remained largely unchanged compared with the previous year and declined sequentially, indicating that revenue growth did not translate into an equivalent improvement in bottom-line earnings.

The company's board also declared an interim dividend of ₹25 per equity share, with October 23, 2026, fixed as the record date.

A significant development during the quarter was the 47% year-on-year increase in combined revenue from Enterprise AI and Business AI services.

The performance highlights LTM's strategy of expanding artificial intelligence-led technology services while maintaining its established businesses in cloud, enterprise applications, digital engineering and IT transformation.

Despite the improvement in revenue and operating earnings, slower deal bookings and relatively flat net profit remain important considerations for investors.

LTM Q2 FY27 Financial Highlights

The financial figures indicate that LTM maintained revenue growth and operating profitability, although profit after tax and deal bookings presented a more mixed picture.

Revenue Increases 13.6% to ₹11,807.6 Crore

LTM's consolidated revenue from operations increased to ₹11,807.6 crore from ₹10,394.3 crore in the September 2025 quarter.

The increase of approximately ₹1,413 crore represented year-on-year growth of 13.6%.

Sequentially, revenue rose from ₹11,608 crore in the June 2026 quarter.

In constant-currency terms, revenue grew approximately 5.1% year-on-year.

Constant-currency growth measures revenue performance after adjusting for foreign exchange movements, providing an additional indication of underlying business expansion.

The difference between reported rupee growth and constant-currency growth reflects the influence of currency movements on the company's international operations.

LTM generates a substantial proportion of its revenue from overseas markets, particularly North America.

Consequently, changes in exchange rates can affect reported financial performance.

The September-quarter results indicate continued business expansion, although underlying constant-currency growth was more moderate than the reported rupee increase.

Net Profit Remains Largely Flat Despite Revenue Expansion

LTM reported consolidated net profit of approximately ₹1,379.9 crore for the quarter.

This was marginally below the ₹1,381.2 crore reported in the corresponding quarter of the previous financial year.

The year-on-year decline was approximately 0.1%.

On a sequential basis, consolidated profit declined around 6% from ₹1,468.6 crore in the June quarter.

Net profit attributable to the company's shareholders was approximately ₹1,398 crore, compared with approximately ₹1,401 crore a year earlier.

The different profit figures reflect the distinction between consolidated profit after tax and profit attributable to the owners of the company.

The relatively flat earnings performance contrasts with the 13.6% increase in revenue.

This indicates that the improvement in operating earnings was partly offset by other factors affecting the bottom line.

Investors will assess whether the company can improve earnings conversion as its AI-led services and other businesses expand.

EBIT Rises 11.5% to ₹1,838 Crore

LTM reported earnings before interest and tax of approximately ₹1,838 crore for Q2 FY27.

This represented year-on-year growth of 11.5%.

Sequentially, EBIT increased 2.2% from approximately ₹1,799 crore.

The EBIT margin improved to approximately 15.6%, compared with 15.5% in the preceding quarter.

The improvement of around 10 basis points indicates modest progress in operating efficiency.

However, the margin expansion was limited despite the increase in revenue.

IT services profitability is influenced by employee costs, utilisation, project pricing, subcontracting expenditure and the mix of services delivered.

Foreign exchange movements can also affect reported margins.

LTM's ability to sustain margin improvement will depend on managing these factors while investing in emerging technology capabilities.

Enterprise AI and Business AI Revenue Grows 47%

One of the strongest operating indicators in LTM's quarterly results was the growth in artificial intelligence-related services.

The company reported that combined revenue from Enterprise AI and Business AI increased 47% year-on-year.

Enterprise AI services involve the deployment of artificial intelligence within business technology systems and operational environments.

Business AI applications focus on using artificial intelligence to improve enterprise processes, decision-making and productivity.

LTM has been positioning AI as a central component of its technology services strategy.

The company combines technology capabilities with industry-specific expertise to address customer requirements.

Chief Executive Officer and Managing Director Venu Lambu highlighted the performance of the AI businesses as evidence of progress in executing the company's strategy.

However, the company did not disclose a separate absolute revenue figure for the combined AI businesses in the reported highlights.

The 47% growth rate should therefore not be interpreted as representing the same proportion of total company revenue.

AI Strategy Supports Expansion Into Higher-Value Services

Artificial intelligence is becoming an increasingly important area of enterprise technology investment.

Businesses are exploring AI applications across customer service, software development, data analysis, business operations and enterprise automation.

IT services companies are responding by developing consulting, implementation and managed-service capabilities.

LTM's strategy focuses on combining AI technology with industry knowledge and existing enterprise systems.

This approach can support projects involving application modernisation, cloud platforms, data infrastructure and workflow automation.

The company aims to position itself as a partner for organisations seeking to implement AI within complex business environments.

However, the commercial impact of AI adoption varies across customers.

Some enterprises remain in the evaluation or pilot stages, while others are moving toward broader deployment.

The sustainability of LTM's AI-related growth will depend on converting customer interest into recurring and profitable engagements.

Total Contract Value Declines to $1.26 Billion

LTM reported total contract value of approximately $1.26 billion during the September quarter.

This compared with $1.68 billion in the preceding quarter.

The sequential decline was approximately 25%.

Contract bookings were also below the approximately $1.59 billion reported in the corresponding quarter of the previous year.

Total contract value represents the value of agreements signed during a period, subject to their contractual terms and duration.

It is an important indicator of potential future business activity.

However, contract value is not equivalent to revenue recognised during the quarter.

Revenue is generally recorded as contracted services are delivered.

The decline in deal bookings raises questions about the pace of new business acquisition.

Large IT services contracts can fluctuate significantly between quarters because of differences in deal timing and customer procurement decisions.

Nevertheless, sustained weakness in bookings could affect future revenue growth.

Banking and Financial Services Remain the Largest Industry Segment

Banking, financial services and insurance remained LTM's largest industry segment.

The segment contributed approximately 34.7% of quarterly revenue.

Revenue from the segment increased 3% sequentially.

Financial institutions continue to invest in technology modernisation, cybersecurity, cloud infrastructure and digital customer services.

AI is also creating opportunities in areas such as risk management, customer support and operational automation.

LTM's exposure to this segment provides access to a large market for enterprise technology services.

The company also reported the addition of a financial services customer to its category of clients generating more than $100 million in annual revenue.

This development indicates deeper engagement with at least one major customer.

However, concentration in financial services also creates exposure to changes in technology spending by banks and other financial institutions.

Manufacturing Segment Records 3.5% Sequential Growth

Manufacturing accounted for approximately 19.9% of LTM's quarterly revenue.

The segment recorded sequential growth of 3.5%.

Technology investment in manufacturing includes digital engineering, enterprise applications, automation and data-driven operational improvements.

Manufacturers are increasingly exploring AI applications for maintenance, production planning and supply-chain management.

LTM's manufacturing business provides opportunities to combine engineering expertise with enterprise technology services.

However, technology spending by industrial customers can be influenced by capital expenditure cycles and broader economic conditions.

The segment's quarterly growth provides a positive indicator, but sustained performance will depend on customer investment decisions.

Technology and Services Segment Contracts Sequentially

The technology and services segment accounted for approximately 19% of LTM's revenue.

Revenue from the segment declined 4.1% sequentially.

The contraction contrasted with growth in financial services and manufacturing.

Technology companies can adjust external IT spending in response to changes in demand, profitability and business priorities.

The segment's performance indicates that demand conditions were not uniform across LTM's customer base.

The company will need to balance opportunities in stronger-performing industries with slower growth in other areas.

Diversification across industries can help reduce dependence on any single customer category.

However, weaker demand in a significant segment can still affect overall growth.

Consumer Business Records Marginal Sequential Growth

LTM's consumer segment contributed approximately 26.4% of quarterly revenue.

Revenue increased 0.2% sequentially.

The modest growth indicates relatively stable performance compared with the previous quarter.

Consumer-oriented businesses invest in digital commerce, customer engagement, supply-chain systems and enterprise applications.

Technology spending in this segment can be affected by consumer demand, retail conditions and corporate profitability.

LTM's ability to expand within the segment will depend on customer budgets and the commercial value of its technology services.

The company continues to operate across a diversified industry portfolio, with different growth trends influencing consolidated performance.

North America Generates 74.3% of Revenue

North America remained LTM's largest geographic market, contributing approximately 74.3% of total revenue.

Revenue from the region increased 1.4% sequentially.

The company's substantial exposure to North America reflects the importance of US-based enterprises in the global IT services industry.

Customers in the region represent significant demand for cloud services, enterprise applications, digital transformation and technology outsourcing.

However, the concentration also creates exposure to US economic conditions and corporate technology budgets.

Changes in interest rates, business confidence and investment priorities can influence spending decisions.

For LTM, maintaining customer relationships and expanding higher-value services in North America will remain central to growth.

Europe Contributes 14.9% of Revenue

Europe accounted for approximately 14.9% of LTM's quarterly revenue.

The region recorded sequential growth of 0.5%.

European enterprises continue to invest in technology modernisation, cloud services and digital transformation.

However, economic conditions and regulatory requirements can influence technology spending.

LTM's presence in Europe provides geographic diversification beyond its largest North American market.

The company also generates revenue from other international regions.

The rest-of-world segment contributed approximately 10.8% of revenue and declined 1.6% sequentially.

The geographic results indicate that growth remained positive in North America and Europe, while other markets experienced some pressure.

Active Client Base Expands to 729

LTM added 20 clients during the September quarter.

The total number of active clients increased to 729.

Customer additions are important for expanding the company's addressable revenue base.

However, the size and profitability of individual engagements vary significantly.

LTM also reported growth in the number of larger customers.

The number of clients generating more than $5 million in annual revenue increased by 14 year-on-year to 172.

Clients generating more than $10 million increased by 16 to 109.

The company had 51 clients in the $20 million-plus category, 15 in the $50 million-plus category and three in the $100 million-plus category.

The expansion of larger customer relationships is relevant because it indicates opportunities to deliver multiple services across enterprise accounts.

Employee Headcount Increases to 88,835

LTM reported a total workforce of 88,835 employees at the end of September 2026.

The employee base increased by 949 sequentially.

The expansion reflects continued workforce requirements as the company delivers existing projects and pursues new business opportunities.

Employee costs represent a major component of expenditure for IT services companies.

Workforce planning is therefore important for profitability.

Companies must balance recruitment and skill development with project demand and employee utilisation.

LTM's workforce expansion comes as AI technologies are changing the skills required for software development, consulting and enterprise services.

The company will need to continue investing in employee capabilities while maintaining operational efficiency.

Attrition Holds Steady at 13.3%

LTM reported trailing 12-month employee attrition of 13.3%.

The rate remained stable compared with the preceding quarter.

Attrition measures employee departures over a specified period.

High attrition can increase recruitment and training costs while creating challenges in project delivery.

Stable attrition can support workforce planning and operational continuity.

However, employee retention remains important in specialised areas such as artificial intelligence, cloud engineering and cybersecurity.

Demand for these capabilities can influence compensation and recruitment conditions.

LTM's ability to retain experienced professionals will remain relevant as it expands AI-led services.

Employee Utilisation Remains at 86.4%

The company's employee utilisation rate, excluding trainees, stood at 86.4%.

The rate remained stable during the quarter.

Utilisation is an important operating metric for IT services companies because it indicates the proportion of available employee capacity deployed on productive work.

Higher utilisation can support profitability when supported by appropriate project pricing and service delivery.

However, consistently high utilisation may also reduce flexibility to accommodate new projects or unexpected demand.

LTM will need to balance operational efficiency with the capacity required for future growth.

The stable utilisation rate suggests that the company maintained a relatively consistent deployment of its workforce during the quarter.

Board Declares ₹25 Interim Dividend

LTM's Board of Directors declared an interim dividend of ₹25 per equity share for FY2026–27.

Each equity share has a face value of ₹1.

The dividend represents a distribution of profits to eligible shareholders.

The board approved the dividend on October 16, 2026.

The company has fixed Friday, October 23, 2026, as the record date.

The dividend will be paid within 30 days of declaration to eligible shareholders.

The announcement provides a direct cash return to investors despite the relatively flat quarterly profit performance.

However, the dividend does not change the company's underlying operating earnings.

Future distributions will depend on profitability, cash flows, investment requirements and board decisions.

Dividend Record Date Fixed for October 23

The record date determines which shareholders are eligible to receive the declared dividend.

LTM has fixed October 23, 2026, for this purpose.

Eligibility is determined based on the company's register of members and the beneficial ownership records maintained by the depositories.

Investors should distinguish the record date from the dividend payment date.

The record date establishes entitlement, while the payment is made subsequently.

The company has stated that the dividend will be distributed within 30 days of its declaration.

The actual amount received by each eligible shareholder will depend on the number of qualifying shares held.

For example, an eligible shareholder holding 100 shares would receive a gross dividend of ₹2,500 before any applicable tax deduction.

Dividend Reflects Continued Shareholder Distribution Policy

The ₹25 interim dividend follows LTM's final dividend of ₹53 per share for FY2025–26.

The latest declaration indicates that the company continues to return cash to shareholders while investing in business development.

Dividend payments are one component of shareholder returns.

Investors also consider earnings growth, cash generation, capital allocation and the company's long-term competitive position.

A dividend should not be assessed solely by comparing its amount with the face value of the share.

The dividend yield depends on the prevailing market price.

LTM's future distribution decisions will depend on financial performance and capital requirements.

AI Investment Remains Central to Future Strategy

LTM is pursuing an AI-centric strategy intended to support growth across its existing service portfolio.

The company aims to combine technology capabilities with industry expertise.

This approach is relevant as enterprises increasingly seek measurable business outcomes from AI investments.

Potential applications include software engineering, customer operations, data analytics and business process automation.

However, the economics of AI services continue to evolve.

Automation can change project delivery models, pricing arrangements and workforce requirements.

IT services companies must therefore adapt their business models while maintaining profitability.

LTM's 47% growth in Enterprise AI and Business AI revenue is encouraging, but investors will monitor whether that growth translates into sustained contract wins and stronger earnings.

Slower Deal Bookings Remain a Key Concern

The decline in quarterly total contract value to $1.26 billion represents an important counterpoint to LTM's revenue growth.

The company reported higher revenue from existing operations, but new deal bookings were lower than in the previous quarter.

Large contracts can have irregular signing patterns.

Consequently, one quarter of weaker bookings does not necessarily establish a prolonged demand slowdown.

However, repeated declines could affect future revenue visibility.

Investors will assess whether LTM can convert AI-related demand into larger contracts and expand its existing customer relationships.

The addition of larger clients provides a positive indicator, but the overall pace of deal acquisition remains important.

Outlook for the Remainder of FY27

LTM's performance during the second half of FY27 will depend on several factors.

The first is the pace of enterprise technology spending across its major customer markets.

North America will remain particularly important because of its substantial revenue contribution.

The second is the conversion of AI-related opportunities into commercial contracts.

The third is the company's ability to maintain or improve operating margins.

Employee utilisation, project pricing and workforce costs will influence profitability.

Deal bookings will also remain an important indicator of future growth.

The company's relatively flat quarterly net profit highlights the need to translate revenue expansion into stronger earnings.

LTM's diversified industry exposure and growing AI business provide opportunities, but the outlook remains dependent on customer demand and execution.

Conclusion

LTM delivered 13.6% year-on-year revenue growth in the September 2026 quarter, taking consolidated revenue to ₹11,807.6 crore.

EBIT increased 11.5% to approximately ₹1,838 crore, while the operating margin improved modestly to 15.6%.

The company also reported 47% growth in combined Enterprise AI and Business AI revenue, reflecting continued expansion of its artificial intelligence-related services.

However, consolidated net profit remained broadly flat year-on-year and declined sequentially.

Total contract value also fell to $1.26 billion, indicating slower deal bookings during the quarter.

The board's declaration of a ₹25 interim dividend, with October 23 as the record date, provides a cash distribution to eligible shareholders.

LTM's performance demonstrates continued revenue growth and progress in AI services, but future earnings will depend on stronger contract acquisition, sustained customer spending and improved conversion of revenue into profit.