This article first appeared on GuruFocus .
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FY26 Revenue:USD 4.76 billion, 6% growth in dollar terms, 5.3% in constant currency.
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FY26 Operating Margins:15.4%, a 90 bps improvement year-over-year.
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FY26 Adjusted PAT:INR 5,371 crores, up 17% year-over-year.
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FY26 Total Order Inflow:USD 6.6 billion, 10.3% year-over-year increase.
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Q4 Revenue:USD 1.22 billion, 1.2% sequential growth, 8.1% year-over-year growth.
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Q4 Operational EBIT Margins:15.1%.
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Q4 Order Inflow:USD 1.7 billion.
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BFSI Growth:3.7% in FY26.
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Manufacturing and Resources Growth:12.7% in FY26.
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Consumer Business Growth:13.2% in FY26.
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Healthcare, Life Science, and Public Services Growth:9.6% in FY26.
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Americas Growth:4% in FY26.
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Europe Growth:12.4% in FY26.
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Rest of the World Growth:11.6% in FY26.
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FY26 Headcount:87,950, net addition of 3,643 employees year-over-year.
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FY26 Operating Cash Flow to PAT:96.3%.
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FY26 Free Cash Flow to PAT Ratio:78.1%.
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FY26 Cash and Investment Balance:USD 1.63 billion.
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Q4 Effective Tax Rate:26.3%.
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Q4 Basic EPS:INR 45.4.
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Q4 DSO:84 days.
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Q4 Return on Capital Employed:29.2%.
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Q4 Utilization (Excluding Trainees):85.7%.
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Q4 Trailing 12-Month Attrition:13.3%.
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Final Dividend:INR 53 per share, total INR 75 per share for FY26.
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Warning! GuruFocus has detected 3 Warning Signs with BOM:540005.
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Release Date: April 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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LTM Ltd ( BOM:540005 ) reported a revenue of USD4.76 billion for FY26, reflecting a growth of 6% in dollar terms and 5.3% in constant currency.
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The company achieved a 17% year-over-year increase in adjusted PAT, reaching INR5,371 crores.
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LTM Ltd secured some of the largest deals in its history, with a 300% increase in large deal wins, including six USD100 million plus deals.
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The company launched Blueverse, an AI ecosystem, which is accelerating clients' concept to value journey.
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LTM Ltd's new identity and positioning as a business creativity partner aligns with its strategic shift towards AI-centric capabilities.
Negative Points
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The tech, media, and communication vertical saw a decline of 0.7% in FY26.
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Operational EBIT margins in Q4 declined by 100 basis points sequentially to 15.1% due to partial wage hikes.
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The company's PAT margin, excluding exceptional items, was at 12.7% for FY26, slightly lower than the previous year.
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The BFSI vertical reported a modest growth of 3.7% for the full year, indicating challenges in this segment.
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LTM Ltd's top accounts showed slower growth, impacting overall performance, with a need for recovery in FY27.
Q & A Highlights
Q: How are clients adapting to the rapid pace of technology change, and how does this affect contract structures? A: Venugopal Lambu, CEO and Managing Director, explained that contracts related to core IT services remain long-term, while those for modernizing systems are project-based. AI adoption is starting as project-related and may evolve into long-term contracts as clients mature. FY27 is expected to see increased AI adoption, influencing contract structures.
Q: Are there risks with the renewal of longer-term contracts signed in the last two to three years? A: Venugopal Lambu stated that contracts are viewed as relationships, not transactions. There are no significant trends indicating early renegotiations. However, clients are seeking better innovation and productivity within existing contracts, which LTM is addressing.
Q: What is the outlook for growth in FY27 compared to FY26? A: Venugopal Lambu expressed confidence in maintaining growth momentum into FY27, despite potential quarterly fluctuations due to macroeconomic factors. The company aims to continue the growth trajectory established in FY26.
Q: How is the BFSI vertical performing, and what is the outlook for top accounts? A: Venugopal Lambu noted that outside the top account, BFSI achieved double-digit growth. The top BFSI account is expected to begin a growth trajectory from Q1 FY27, although recovery may not match the speed of previous declines.
Q: What are the margin expectations for the next one to two years? A: Vipul Chandra, CFO, indicated a focus on cost optimization and efficiencies, aiming to expand margins while balancing growth and AI strategy execution. The New Horizons program will drive operational efficiencies as part of the Lakshya plan.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
