LTM, formerly known as LTIMindtree, reported a mixed financial performance for the second quarter of fiscal year 2027, with revenue increasing 13.6% year on year to ₹11,807.6 crore while net profit declined marginally by 0.1% to approximately ₹1,380 crore. The September-quarter results, announced on October 16, 2026, reflect continued business expansion alongside pressure on profitability. The company also reported an 11.5% increase in earnings before interest and tax (EBIT), while its operating margin improved slightly compared with the previous quarter.
Artificial intelligence emerged as an important growth driver, with combined revenue from Enterprise AI and Business AI rising 47% year on year. However, LTM’s quarterly deal bookings declined to $1.26 billion from $1.68 billion in the preceding quarter, raising questions about the pace of future revenue conversion. The company’s board declared an interim dividend of ₹25 per equity share, with October 23 set as the record date. The results highlight the opportunities created by enterprise AI adoption as well as the challenges facing IT services companies in converting demand into sustained growth.
Key Takeaways
- Revenue: Increased 13.6% year on year to ₹11,807.6 crore.
- Net profit: Fell 0.1% year on year to approximately ₹1,380 crore.
- AI growth: Combined Enterprise AI and Business AI revenue rose 47%.
- Operating performance: EBIT increased 11.5% to ₹1,838.1 crore, while the EBIT margin stood at 15.6%.
- Deal bookings: Declined to $1.26 billion from $1.68 billion in the previous quarter.
- Dividend: The board declared an interim dividend of ₹25 per share.
- Workforce: Total employee count reached 88,835, with attrition at 13.3%.
LTM Q2 FY27 Results: Revenue and Profit at a Glance
LTM’s latest results show that revenue growth remained strong compared with the year-ago period, even though profit was almost unchanged. Revenue rose from ₹10,394.3 crore in Q2 FY26 to ₹11,807.6 crore in Q2 FY27.
Net profit, meanwhile, edged down from approximately ₹1,381.2 crore to ₹1,379.9 crore. This difference indicates that higher revenue did not translate into meaningful year-on-year profit growth during the quarter.
| Financial metric | Q2 FY27 | Year-on-year change |
|---|---|---|
| Revenue from operations | ₹11,807.6 crore | +13.6% |
| Net profit after tax | ₹1,379.9 crore | -0.1% |
| Earnings before interest and tax | ₹1,838.1 crore | +11.5% |
| EBIT margin | 15.6% | Down 0.3 percentage points |
| Revenue in US dollars | $1.24 billion | +4.7% in reported dollar terms |
| Enterprise AI and Business AI revenue | — | +47% |
Source: LTM’s Q2 FY27 financial results and company commentary. Figures are rounded where appropriate.
In constant-currency terms, revenue increased 5.1% year on year. Constant-currency growth removes the effect of exchange-rate movements to help investors understand underlying business performance.
The difference between rupee and dollar revenue growth is important for an IT services company that earns a substantial portion of its income from overseas customers. Currency movements can influence reported revenue even when the volume of services delivered changes at a different rate.
Why Did Profit Remain Almost Flat?
The small year-on-year decline in net profit contrasts with the increase in revenue and operating earnings. The company’s results indicate that operating performance improved, but other cost and income factors affected the amount ultimately retained as profit.
EBIT rose 11.5% year on year to ₹1,838.1 crore. However, the EBIT margin declined to 15.6% from 15.9% in the year-ago quarter. Compared with the June quarter, the margin improved from 15.5%.
The margin movement suggests that LTM is managing its operating costs while continuing to expand, but profitability remains sensitive to the cost of delivering projects and maintaining its workforce.
Sequentially, net profit declined from ₹1,468.6 crore in Q1 FY27 to ₹1,379.9 crore in Q2 FY27. That is a fall of approximately 6%. The sequential decline is more pronounced than the nearly flat year-on-year comparison and provides a more cautious picture of the quarter’s performance.
Investors generally examine both comparisons. Year-on-year growth helps account for seasonal patterns, while sequential results indicate how the business has changed from the immediately preceding quarter.
For LTM, the combination of higher revenue, improving EBIT and lower net profit highlights the importance of monitoring operating costs, other income and margins in the coming quarters.
Enterprise AI and Business AI Revenue Grows 47%
Artificial intelligence was one of the strongest areas of LTM’s performance. CEO and Managing Director Venu Lambu said combined revenue from Enterprise AI and Business AI increased 47% year on year.
Enterprise AI generally involves integrating AI capabilities into corporate systems, workflows and business operations. Business AI can include solutions that help companies automate processes, improve decision-making and use data more effectively.
The growth suggests that clients are increasingly spending on AI-related services. For IT services providers, these projects can involve consulting, software integration, data engineering, cloud infrastructure, automation and ongoing support.
LTM has positioned AI as a central part of its growth strategy, combining technology expertise with knowledge of specific business domains. This approach aims to help clients move from experimenting with AI tools to deploying solutions within operational environments.
The company also reported adding a financial services client to its category of customers generating more than $100 million in revenue. That development indicates progress in expanding relationships with large enterprise clients.
However, the 47% figure applies to combined Enterprise AI and Business AI revenue. It does not mean that total company revenue grew by 47%, nor does it establish how much of the AI business’s growth translated into additional profit.
The longer-term opportunity will depend on whether LTM can convert early AI projects into repeatable, large-scale engagements that generate sustainable revenue.
Deal Bookings Fall to $1.26 Billion
A key concern in the results was the decline in quarterly deal bookings. LTM reported deal bookings of $1.26 billion, down from $1.68 billion in Q1 FY27 and $1.59 billion in the year-ago quarter.
| Deal bookings | Value |
|---|---|
| Q2 FY26 | $1.59 billion |
| Q1 FY27 | $1.68 billion |
| Q2 FY27 | $1.26 billion |
| Change from previous quarter | Approximately -25% |
| Change from year-ago quarter | Approximately -21% |
Deal bookings measure the value of contracts secured during a period, rather than revenue already recognised. A decline can indicate weaker new contract activity, but quarterly figures may fluctuate depending on the timing of large deals and the mix of contracts signed.
For LTM, the latest decline matters because new bookings can provide an indication of the revenue pipeline for future quarters. A sustained slowdown in bookings could make it harder to maintain growth once existing projects mature or conclude.
At the same time, a single quarter does not establish a long-term trend. Investors will need to monitor subsequent deal wins, contract execution and the rate at which new work becomes recognised revenue.
The contrast between growing AI revenue and lower overall deal bookings also shows why companies need to convert demand for new technology into signed contracts and scalable projects.
Which Business Segments Drove Revenue Growth?
LTM reported mixed performance across its business segments. Financial Services remained the largest contributor, accounting for 34.7% of revenue. Production represented 19.9%, Technology and Services accounted for 19%, and Consumer contributed 26.4%.
On a sequential basis, Financial Services revenue grew 3% in dollar terms, while Production increased 3.5%. Consumer recorded growth of 0.2%, and Technology and Services declined 4.1%.
| Business segment | Share of revenue | Sequential performance |
|---|---|---|
| Financial Services | 34.7% | +3.0% |
| Consumer | 26.4% | +0.2% |
| Technology and Services | 19.0% | -4.1% |
| Production | 19.9% | +3.5% |
Sequential performance is based on reported dollar revenue comparisons.
Financial Services benefits from technology spending by banks, insurers and other financial institutions. These clients may invest in modernising systems, improving digital customer experiences, strengthening data infrastructure and deploying AI-driven applications.
Production includes industrial and manufacturing-related customers, where technology demand can be linked to supply-chain efficiency, automation and digital operations.
Technology and Services recorded a sequential decline, illustrating that demand remains uneven across the market. This divergence matters because a strong performance in one business area may not fully offset weakness elsewhere.
The segment figures also reinforce the importance of client budgets and project timing. Enterprise technology spending can shift between quarters as companies review priorities, delay discretionary projects or move funds toward specific initiatives.
North America Remains LTM’s Largest Market
North America continued to account for the majority of LTM’s revenue, contributing 74.3% during the quarter. The region recorded sequential growth of 1.4% in reported dollar terms.
Europe contributed 14.9% of revenue and recorded sequential growth of 0.5%. The rest of the world represented 10.8% and declined 1.6% sequentially.
The concentration in North America means the company’s performance is closely linked to technology spending by US businesses. Changes in corporate budgets, economic confidence and demand for consulting and IT services can affect the pace of new projects.
The geographic mix also creates opportunities. Large enterprises are investing in AI, cloud modernisation and automation, giving technology service providers a route to expand existing relationships and win new work.
However, clients may also scrutinise technology spending more carefully as AI changes how software is developed and services are delivered. Providers need to demonstrate measurable business value rather than relying solely on broad demand for digital transformation.
LTM Adds Employees as Attrition Remains Stable
LTM’s total employee count reached 88,835 at the end of September, an increase of 949 employees from the previous quarter. Attrition remained stable at 13.3%, while utilisation, excluding trainees, stood at 86.4%.
Hiring alongside a nearly unchanged profit figure can be interpreted in several ways. Additional employees can help a company deliver new contracts and build capabilities in areas such as AI, cloud and enterprise platforms. However, workforce expansion also increases costs if new employees are not deployed efficiently or if project demand weakens.
Utilisation measures the proportion of available employee capacity being used for billable or productive work, depending on the company’s definition. A stable utilisation rate can help management plan staffing and project delivery, although the metric alone does not establish whether margins will improve.
For investors, the key issue is whether workforce growth supports revenue and contract execution without creating excess capacity. The balance between hiring, utilisation, employee costs and new business will influence the company’s operating performance over time.
LTM Declares ₹25 Interim Dividend
LTM’s board declared an interim dividend of ₹25 per equity share with a face value of ₹1 each for fiscal 2027.
The record date is October 23, 2026. Shareholders eligible under the company’s dividend rules will receive the payment within 30 days of the declaration.
A dividend provides a direct cash return to eligible shareholders, but the record date determines which investors qualify. Buying shares on or after the relevant ex-dividend date may not provide entitlement to the payment, depending on the applicable settlement and exchange rules.
Investors should check the company’s official announcements and their broker’s information for the applicable ex-dividend date and settlement details.
The dividend is also separate from the company’s operating performance. While LTM’s board has approved the payout, investors should continue to assess earnings growth, margins, cash generation and the outlook for future contracts when evaluating the stock.
The Bigger Picture
LTM’s Q2 FY27 results reflect the opportunities and uncertainties facing India’s IT services industry. Revenue rose 13.6% year on year, while Enterprise AI and Business AI revenue grew 47%, suggesting that clients are spending on new technology capabilities. Yet the marginal decline in net profit and the fall in deal bookings indicate that revenue growth alone does not guarantee stronger earnings or a more secure future pipeline.
The company’s next challenge is to turn AI demand into repeatable contracts, improve profitability and maintain growth across business segments and geographies. Investors will be watching future bookings, margin performance and the conversion of new projects into revenue. The results offer evidence of continued expansion, but the sustainability of that growth will depend on execution and client spending.
Looking Ahead
LTM will need to demonstrate that its AI-led strategy can deliver measurable financial results beyond strong growth in a specific business category. The next quarters will provide more evidence about whether deal bookings recover, whether margins improve and whether the company can maintain revenue momentum across its largest markets. The declared ₹25 dividend provides a near-term shareholder payout, but longer-term performance will depend on earnings quality and cash generation.
For investors, the key signals to track are deal wins, AI revenue growth, operating margins, client expansion and workforce utilisation. A recovery in bookings alongside stable or improving margins would provide stronger evidence that revenue growth is translating into a sustainable business pipeline. If bookings remain weak, the company may face greater pressure to maintain its growth rate even as demand for AI services continues to expand.
Frequently Asked Questions
1. What was LTM’s revenue in Q2 FY27?
LTM reported consolidated revenue from operations of ₹11,807.6 crore in the September 2026 quarter, up 13.6% year on year.
2. How much profit did LTM report?
The company reported net profit of approximately ₹1,379.9 crore, down 0.1% year on year and around 6% sequentially.
3. How fast is LTM’s AI business growing?
Combined revenue from Enterprise AI and Business AI grew 47% year on year, according to the company’s management.
4. Why did LTM’s deal bookings decline?
Deal bookings fell to $1.26 billion from $1.68 billion in the previous quarter. Quarterly bookings can fluctuate with contract timing, but a sustained decline could affect the future revenue pipeline.
5. What dividend did LTM declare?
LTM declared an interim dividend of ₹25 per equity share. October 23, 2026, is the record date for determining eligible shareholders.
6. How many employees does LTM have?
LTM ended the September 2026 quarter with 88,835 employees. Attrition was 13.3%, and utilisation excluding trainees was 86.4%.
Dividend source (checked 17 October 2026): LTM’s official dividend table confirms an FY2027 interim dividend of ₹25 per share, declared on 16 October 2026, with a record date of 23 October 2026.
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