J.P. Morgan India FTM 25 May 26 India: Data Watch; India Economics; LTM; India Mortgages; India IT Services and More

Research evidence excerpt

J.P. Morgan India FTM 25 May 26 India: Data Watch; India Economics; LTM; India Mortgages; India IT Services and More

Asia Pacific Equity Research

India First to Market 25 May 2026

Top Stories

India (Sajjid Z Chinoy)

• BoP pressures driven by capital account rather than current account

• PMI’s suggest margin compression in manufacturing

• Core IP softens in April, though unlikely to be driven by shortages

India: This time is different (Sajjid Z Chinoy)

Managing BoP and Rupee pressures will be India’s key macroeconomic challenge this year

Unlike previous episodes, pressures are emanating from the capital account, not the current account

| LTM (Ankur Rudra, CFA) (LTM IN, N)

Unusual acquisition that can distract management and signals struggling organic initiatives;

downgrade to N

LTM announced that it has issued an offer to acquire Randstad’s (RAND NA; covered at JPM by Jane Sparrow) technology and

consulting services business in Europe and Australia. Revenues of these entities (€469m) have declined sharply in the past

two years while we estimate the business operates at much lower 4-5% Ebitda margins, given its onshore-heavy nature, which

should be materially margin-dilutive. LTM has also announced concomitant contracts to take over and build a GCC for

Randstad in India and a reverse contract to Randstad to support LTM’s subcon needs. While, across the three contracts,

management doesn’t see any EPS dilution, we estimate the acquisition alone could drive ~2% EPS dilution due to amortization

costs and lower interest income. Moreover, we don’t see obvious horizontal service line or vertical synergies, given its focus on

digital engineering and cybersecurity rather than core IT Services, which LTM focuses on. Cross-sell opportunities as they exist