LTM Q2 Results: Profit Flat, Revenue Up 13.6%; Rs 25 Dividend

Revenue growth outpaces profit

LTM reported nearly unchanged profit for the second quarter of FY27 despite double-digit revenue growth, alongside an expansion in its AI business and higher-value client accounts. The company also declared an interim dividend of Rs 25 per equity share, with October 23, 2026, set as the record date.

According to Economic Times Markets, profit after tax slipped 0.1% year-on-year to Rs 1,379.9 crore from Rs 1,381.2 crore. Revenue increased 13.6% to Rs 11,807.6 crore, compared with Rs 10,394.3 crore in the corresponding quarter of FY26.

Earnings before interest and tax rose 11.5% to Rs 1,838.1 crore from Rs 1,648.1 crore a year earlier. Operating earnings therefore grew more slowly than revenue, while the increase in operating profit did not translate into higher profit after tax. The supplied results account does not provide a detailed explanation for that divergence.

The distinction matters when reading the headline numbers: the company delivered a larger revenue base and higher operating earnings, but its bottom line remained broadly at the previous year's level.

Dollar earnings show a different pattern

In dollar terms, quarterly net profit stood at $144 million, down 6.7% from the preceding quarter and 7.9% from a year earlier. That contrasts with the almost flat year-on-year movement in the rupee-denominated profit figure.

Dollar-denominated EBIT reached $192 million, increasing 1.4% sequentially and 2.8% year-on-year. Both comparisons showed operating earnings growth, although the year-on-year increase was smaller than the 11.5% rise reported in rupees.

The currency basis and comparison period are important distinctions: the 6.7% net profit decline is a sequential dollar measure, not the year-on-year rupee result. The report does not include a currency reconciliation or a detailed breakdown explaining the different rates of change.

AI business and larger client accounts expand

Combined revenue from Enterprise AI and Business AI grew 47% year-on-year. The report does not give an absolute revenue figure for these businesses or specify their share of total company revenue, limiting how precisely their contribution to overall growth can be assessed.

CEO and Managing Director Venu Lambu attributed the quarter's broad-based performance to execution of the company's AI-focused strategy. He said combining technology capabilities with domain expertise was supporting AI adoption and had helped move a financial services client into the category generating more than $100 million in revenue.

LTM had 729 active clients during the quarter and added 20 new clients. Its larger-account categories also expanded: the number generating more than $5 million increased by 14 year-on-year to 172, while the number above $10 million rose by 16 to 109.

The category above $20 million gained six clients to reach 51. The categories above $50 million and $100 million each increased by one, taking their totals to 15 and three respectively. These are revenue thresholds rather than separate groups that should be added together.

Workforce indicators and management outlook

The company's total workforce stood at 88,835. Attrition over the trailing 12 months was 13.3%, while employee utilisation, excluding trainees, was 86.4%. The supplied account does not provide comparable workforce, attrition or utilisation figures for the preceding period.

For readers tracking the Indian technology sector, these indicators accompany the central earnings question: how growth in AI services and major customer relationships translates into financial performance. This quarter's figures show rising revenue and operating earnings, but no corresponding year-on-year increase in rupee profit after tax.

Lambu expressed confidence in the company's growth prospects. His outlook was qualitative; the supplied report contains no numerical revenue or profit guidance for the next quarter. Further results will be needed to establish whether the expansion in AI revenue and larger accounts produces stronger bottom-line growth.

Dividend timetable and share performance

The Rs 25 interim dividend applies to each equity share with a face value of Re 1. Payment will be made within 30 days of declaration to eligible shareholders recorded in the company's register of members or in the beneficial-owner lists supplied by depositories as of October 23, 2026.

On the NSE, LTM shares closed Friday at Rs 4,390, gaining 3.66% from the previous close of Rs 4,235. The day's advance nevertheless left the stock down 28.17% for the year, according to the exchange data cited in the report.

At the reported market price, LTM's market capitalisation was Rs 1,30,216 crore. For shareholders, the next specified calendar milestone is the dividend record date, followed by payment within the announced window. No exact payment date was provided.