Well begun and half done; triggers for the next half are demanding

Research evidence excerpt

Well begun and half done; triggers for the next half are demanding

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LTM

Well begun and half done; triggers for the

next half are demanding

Initiating Coverage: UNDERPERFORM | PO: 3,910 INR | Price: 3,805 INR

A good start under new CEO… 25 June 2026

We see LTM as a fast-scaling global IT services firm delivering cloud, digital Equity

transformation and AI services across a diverse set of industries. LTM delivered well on

its three key priorities for FY26 under new leadership, delivering revenue growth higher Kunal Tayal >>

Research Analyst

than the larger peers, and registering an expansion in margin alongside a jump in large BofAS India

deal wins. Focus on a dedicated team for winning large deals and cost take out while +91 22 6632 8663

kunal.tayal@bofa.com

prioritizing expanding footprint beyond areas of traditional strength make for a good

Jatin Kalra, CFA >>

start to FY31 target of doubling revenue alongside 200bp margin uptick, in our view. Research Analyst

…but the next ask gets bigger BofAS+91 22India6632 8390

jatin.kalra3@bofa.com

All else equal, the efforts of FY26 should have provided adequate tailwinds for the next

few years. However, increasing competitive intensity in the sector - especially for large

deals - makes extrapolation tough with incumbents expected to fiercely guard their large

contracts. In this context, payoff from management's FY27 plans focusing on new Stock Data

horizons of growth, competencies and the AI pivot look essential vs. incremental. We

expect payoff from this to take 2-3years and estimate a FY26-FY29 revenue CAGR of Price 3,805 INR

7.5%. Price Objective 3,910 INR

Date Established 25-Jun-2026

Expect AI investments to take precedence over margins Investment Opinion B-3-7