LTM Q2 FY27 profit falls 5% to ₹1,398 crore; revenue rises 2%
Synopsis
LTM's Q2 FY27 profit slipped 5 per cent sequentially even as revenue edged up 2 per cent — but the real story is the order inflow slump to $1.26 billion from $1.68 billion last quarter, raising questions about near-term revenue visibility. Financial services, the firm's largest vertical, grew just 0.4 per cent year-on-year. The stock still closed 3.66 per cent higher ahead of results.
Key Takeaways
LTM reported a Q2 FY27 net profit of ₹1,398 crore , down 5 per cent sequentially from ₹1,466 crore in Q1 FY27.
Revenue from operations rose 2 per cent quarter-on-quarter to ₹11,808 crore .
EBIT improved 2.2 per cent sequentially to ₹1,839 crore ; EBIT margin held at 15.6 per cent .
Order inflows fell to $1.26 billion from $1.68 billion in Q1 FY27 and $1.59 billion in Q2 FY26.
The consumer vertical led growth at 8.6 per cent year-on-year; financial services grew just 0.4 per cent .
LTM shares ended 3.66 per cent higher at ₹4,390 on 16 October 2026 , valuing the firm at about ₹1.30 lakh crore .
LTM, the Mumbai-headquartered IT services firm, on Friday, 16 October 2026, reported a 5 per cent sequential decline in consolidated net profit for the second quarter of FY27 (Q2 FY27), ended 30 September 2026. Net profit stood at ₹1,398 crore, down from ₹1,466 crore in the preceding June quarter (Q1 FY27), according to the company's stock exchange filing.
Revenue and Operating Performance
Revenue from operations climbed 2 per cent quarter-on-quarter to ₹11,808 crore from ₹11,608 crore in Q1 FY27. Operating profit, measured as earnings before interest and tax (EBIT), rose 2.2 per cent sequentially to ₹1,839 crore from ₹1,799 crore. The EBIT margin held largely steady at 15.6 per cent, fractionally up from 15.5 per cent in the prior quarter.
In dollar terms, revenue grew 1.1 per cent sequentially on a constant-currency basis to $1.24 billion. On a year-on-year basis, constant-currency revenue expanded 5.1 per cent, signalling underlying demand momentum even as quarter-on-quarter growth remains modest.
Order Inflows Soften
A key area of concern was order inflow, which stood at $1.26 billion during Q2 FY27 — noticeably lower than the $1.68 billion reported in the June quarter and also below the $1.59 billion recorded in the same period a year earlier. The sequential and year-on-year decline in deal wins could weigh on revenue visibility in the quarters ahead, analysts may note.
What the Management Said
Venu Lambu, Chief Executive Officer and Managing Director of LTM, attributed the company's broad-based growth to successful execution of its AI-focused strategy. The comment signals that LTM is leaning on artificial intelligence capabilities as a differentiator in a competitive deal environment.
Business Segments and Headcount
Among verticals, the consumer segment posted the strongest year-on-year growth at 8.6 per cent in constant currency terms. Production grew 7.4 per cent and technology and services increased 7 per cent. Financial services, the company's largest vertical, recorded comparatively modest growth of just 0.4 per cent year-on-year — a segment to watch given its outsized revenue contribution.
LTM's total headcount rose to 88,835 employees as of end-September, with a net addition of 949 employees during the quarter, reflecting cautious but continued hiring.
Market Reaction
Shares of LTM closed 3.66 per cent higher at ₹4,390 on the National Stock Exchange (NSE) on 16 October 2026, ahead of the earnings announcement. The results were released after market hours. At the closing price, the company commanded a market capitalisation of approximately ₹1.30 lakh crore.
With order inflows softening and financial services growth muted, investor focus in the coming quarters will likely centre on whether LTM's AI strategy can translate into larger deal wins and margin expansion.
Point of View
And the year-on-year comparison to $1.59 billion makes it harder to frame as seasonal noise. Financial services, which anchors LTM's revenue base, growing at just 0.4 per cent points to continued stress in that sector's technology spending. CEO Venu Lambu's pivot to an 'AI-focused strategy' narrative is the right framing for the market, but AI positioning will need to show up in larger deal sizes and improved win rates before it moves the needle on order books. The pre-result stock rally of 3.66 per cent suggests expectations were low — a mixed blessing that could unwind if order momentum does not recover in Q3.
NationPress
17 Oct 2026
Frequently Asked Questions
What was LTM's net profit in Q2 FY27?
LTM reported a consolidated net profit of ₹1,398 crore in Q2 FY27, ended 30 September 2026, down 5 per cent sequentially from ₹1,466 crore in the previous June quarter. Revenue from operations rose 2 per cent to ₹11,808 crore over the same period.
Why did LTM's profit fall sequentially despite revenue growth?
While LTM's revenue and operating profit both grew modestly quarter-on-quarter, the net profit decline reflects cost and below-the-line pressures that offset operational gains. The company has not separately itemised the specific drivers beyond the reported EBIT figures.
How did LTM's order inflows perform in Q2 FY27?
LTM's order inflows fell to $1.26 billion in Q2 FY27, down from $1.68 billion in Q1 FY27 and below the $1.59 billion recorded in Q2 FY26. The sequential and year-on-year decline raises concerns about near-term revenue pipeline visibility.
Which business verticals drove growth for LTM in Q2 FY27?
The consumer vertical led with 8.6 per cent year-on-year growth in constant currency, followed by production at 7.4 per cent and technology and services at 7 per cent. Financial services, the largest vertical, grew just 0.4 per cent year-on-year.
How did LTM shares react to the Q2 FY27 results?
LTM shares closed 3.66 per cent higher at ₹4,390 on the National Stock Exchange on 16 October 2026, ahead of the post-market earnings release. At that price, the company's market capitalisation stood at approximately ₹1.30 lakh crore.
