Largely in-line performance in 1QFY27: Growth should improve marginally in FY27F; retain Buy

研报英文原文证据摘录

Largely in-line performance in 1QFY27: Growth should improve marginally in FY27F; retain Buy

Global Markets Research

LTM LTIM.NS LTM IN 12 July 2026

EQUITY: SOFTWARE & SERVICES

RatingLargely in-line performance in 1QFY27 Remains Buy

price INR 4,400 RemainsGrowth should improve marginally in FY27F; retain Buy Target

Closing price INR 4,037 10 July 20261QFY27 — growth slightly below, and margins slightly above expectations

LTM’s 1QFY27 revenue was up 0.3% q-q (+6.4% y-y) in constant currency or cc terms vs our Implied upside +9.0%expectation of +1% q-q growth. Growth was led by Technology (+3.2% q-q) and Financial Services

(+3.1% q-q), both in USD terms. EBIT margin at 15.5% was up 40bp q-q (+130bp y-y) vs our Market Cap (USD mn) 12,561.8

expectation of 15.2%. TCV of deal wins at USD1.68bn was up +3% y-y, with a book-to-bill ratio of ADT (USD mn) 20.5

1.37x. EPS at INR46.8 was up +23% y-y.

New CEO’s strategy continues to make progress, AI is a key focus area

Relative performance chartRecall, the new CEO had shared the three key pillars of his strategy in the 4QFY25 earnings call:

(1) to simplify sales structure, strengthen leadership, and explore new sales models in the AI world;

(2) to focus on large deals; and (3) to focus on operational improvement and margin improvement

through the Fit for Future program. The company reiterated its goals to double revenues by FY31F

under project Lakshya. LTM announced strategic investment in Uniphore (unlisted) to accelerate its

SLM development and deployment, and AI 1000 program to develop a pool of 1,000+ forward

deployed engineers in its workforce.

Internals of growth are decent

Growth in 1Q was led by Tech and Financial Services and top 5 accounts grew 4.5% q-q in USD

terms (ahead of +0.1% at company level).