LTM revenue grows, but faster costs keep margin below last year's level
Operating margin slipped 0.84 percentage points year on year as expenses outpaced revenue, while lower other income left net profit flat.
Filed 16 Oct 2026, 16:57 IST · after market close · LTM Ltd (LTM)
Key takeaways
- Consolidated revenue grew 13.60% year on year, but expenses grew faster at 14.77%, narrowing operating margin by 0.84 percentage points.
- Net profit was broadly flat year on year at -0.09% as other income fell 69.54% and contributed 4.92% of pre-tax profit.
- Management said LTM added 20 clients in Q2FY27, while quarterly order inflow was USD 1.26 billion.
Price around the results
Revenue growth did not translate into profit growth
LTM's consolidated revenue increased 13.60% year on year, but operating profit rose only 8.46% because expenses grew 14.77%. This left net profit almost unchanged at -0.09% year on year, despite a 0.70 percentage-point reduction in the tax rate. The results were filed after market close.
Cost growth kept the margin under pressure
Operating margin narrowed by 0.84 percentage points year on year as costs grew faster than revenue; sequentially, the pressure was marginal, with expenses up 1.75% against 1.72% revenue growth and margin down 0.02 percentage points. Other income fell 69.54% year on year and 64.17% sequentially, making up 4.92% of pre-tax profit and limiting reported profit. Interest expense fell 8.39% sequentially, but pre-tax profit still declined 6.00%.
Margin has recovered from Q4FY26 but remains below Q2FY26
Operating margin improved from 17.47% in Q4FY26 to 17.75% in Q1FY27, before edging down to 17.73% in Q2FY27; this is not a continuing three-quarter decline, but the recovery has stalled. LTM's margin was 0.03 percentage points below the 17.76% median for the eight Information Technology peers that had reported, placing it fifth from the bottom.
New client additions and large wins support the business update
Management said LTM added 20 new clients in Q2FY27 and reported USD 1.26 billion of order inflow. Management also said a global banking and financial services institution selected LTM as its strategic technology partner, while a North American specialty construction company selected it to build an AI-led operating model. In the eight-result history, the stock rose once and fell seven times after results, with a median absolute move of 2.16%; no immediate reaction is covered for this filing.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹11,808 cr | ₹11,608 cr | +1.72% | +13.60% |
| Other income | ₹92 cr | ₹255 cr | -64.17% | -69.54% |
| Expenses | ₹9,714 cr | ₹9,547 cr | +1.75% | +14.77% |
| Operating profit | ₹2,093 cr | ₹2,061 cr | +1.59% | +8.46% |
| Operating margin (%) | 17.73% | 17.75% | — | — |
| Interest | ₹70 cr | ₹76 cr | -8.39% | +0.87% |
| Depreciation | ₹255 cr | ₹261 cr | -2.33% | -9.50% |
| Profit before tax | ₹1,860 cr | ₹1,978 cr | -6.00% | -1.04% |
| Tax | ₹480 cr | ₹510 cr | -5.88% | -3.65% |
| Net profit | ₹1,380 cr | ₹1,469 cr | -6.04% | -0.09% |
| EPS (₹) | ₹47.15 | ₹49.46 | -4.67% | -0.27% |
Operating margin of 17.73% compares with a Information Technology sector median of 17.76% across 8 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
- LTM added 20 new clients in Q2 FY27.
- Q2 FY27 order inflow was USD 1.26 billion.
New orders
- A leading global banking and financial services institution selected LTM as its strategic technology partner.
- A North American specialty construction company selected LTM to build an AI-led operating model.
What to watch
- Whether expenses continue to grow faster than revenue, after rising 14.77% versus 13.60% year on year.
- Whether operating margin holds near 17.73%, against the 17.76% peer median.
- Whether other income remains a 4.92% contributor to pre-tax profit.