Latent View flags bench and wage pressure in Q2FY27
Management also said the company won key clients across retail and CPG, technology, and financial services; results were filed after market close.
Filed 31 Oct 2026, 22:44 IST · after market close · Latent View Analytics Ltd (LATENTVIEW)
Key takeaways
- Latent View's consolidated operating margin was 20.32%, 0.75 percentage points above the 19.57% median for 38 reported IT peers.
- The reported 20.32% operating margin came despite management saying higher bench levels and wage hikes reduced adjusted EBITDA margin in Q2FY27.
- Other income of Rs 17.53 cr was a meaningful contributor alongside profit before tax of Rs 65.41 cr and net profit of Rs 48.47 cr.
Price around the results
Q2FY27 profit profile
Latent View reported consolidated operating profit of Rs 59.77 cr and net profit of Rs 48.47 cr in Q2FY27. The profit bridge included Rs 0.83 cr of interest, Rs 11.06 cr of depreciation and Rs 16.94 cr of tax, with a 25.9% tax rate.
Bench and wage costs pressure margins
Management said higher bench levels and wage hikes reduced adjusted EBITDA margin during the quarter. That makes utilisation and employee-cost absorption the key disclosed margin issues, even as reported operating margin stood at 20.32%.
Operating margin above the IT peer median
Latent View's 20.32% operating margin was 0.75 percentage points above the 19.57% median among 38 IT companies that had reported the same quarter. Other income of Rs 17.53 cr also supported pre-tax profit, so earnings quality should be read alongside the operating result.
New clients across three focus areas
The company said it won new key clients in retail and CPG, technology, and financial services during the quarter. The results were filed at 22:44 IST after market close, so there was no immediate market reaction to report.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹294 cr |
| Other income | ₹18 cr |
| Expenses | ₹234 cr |
| Operating profit | ₹60 cr |
| Operating margin (%) | 20.32% |
| Interest | ₹1 cr |
| Depreciation | ₹11 cr |
| Profit before tax | ₹65 cr |
| Tax | ₹17 cr |
| Net profit | ₹48 cr |
| EPS (₹) | ₹2.35 |
Operating margin of 20.32% compares with a Information Technology sector median of 19.57% across 38 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company won new key clients in retail and CPG, technology, and financial services during the quarter.
Problems & risks
- Higher bench levels and wage hikes reduced adjusted EBITDA margin in Q2 FY27.
What to watch
- Whether operating margin holds above 20.32% as the company manages bench levels and wage costs.
- Whether other income remains near Rs 17.53 cr or becomes a smaller contributor to profit before tax.
- Whether net profit of Rs 48.47 cr continues to track operating profit of Rs 59.77 cr.