LTM Revenue Jumps 18% YoY, Margin Widens to 15.5%
LTM (formerly LTIMindtree), an IT services firm that runs technology operations, digital overhauls and AI solutions for large enterprises, reported consolidated revenue of ₹11,608 crore for the June quarter — an 18% year-on-year surge, its fastest in over two years — and disclosed a put option to acquire Randstad’s tech consulting business in Europe and Australia for up to €160 million. The results extend a five-quarter streak of accelerating growth, with operating margin climbing to 15.5%, while the pending Randstad deal fills white spaces in continental Europe and regulated industries.
Revenue accelerates for the fifth straight quarter
The ₹11,608-crore topline is the highest quarterly revenue in the available record. YoY growth has now quickened for five consecutive quarters — from 7.6% a year ago to 18% now . In constant currency, revenue grew 6.4% YoY, with the Consumer segment leading at 18.2% CC, followed by Technology & Services at 10% CC . The anchor North America market grew 5.5% CC, while Europe expanded 8.3% CC, underscoring broad-based demand . Order inflow remained healthy at $1.68 billion, up 3.1% YoY, though flat sequentially .
Margins benefit from cost discipline; one-off gain flatters profit
EBIT margin — the operating profit margin before interest and tax — rose to 15.5% from 15.1% in the March quarter and 14.3% a year ago, staying within the 14.3–16.1% band that has held over the past five quarters . The improvement came from operating leverage: employee costs grew just 9.1% YoY against the 18% revenue jump, and SG&A expenses actually fell 2.1% from a year earlier, even as sub-contracting costs surged 78% . Net profit of ₹1,468.6 crore (excluding exceptional items) was the highest in the trailing five-quarter series, up 17.1% YoY .
| Period | Revenue (₹ Cr) | EBIT Margin (%) | PAT ex-exceptional (₹ Cr) | Revenue YoY Growth (%) |
|---|---|---|---|---|
| Q1 FY26 | 9,840.6 | 14.3 | 1,254.6 | 7.6 |
| Q2 FY26 | 10,394.3 | 15.9 | 1,381.2 | 10.2 |
| Q3 FY26 | 10,781.0 | 16.1 | 1,401.3 | 11.6 |
| Q4 FY26 | 11,291.7 | 15.1 | 1,340.7 | 15.6 |
| Q1 FY27 | 11,608.0 | 15.5 | 1,468.6 | 18.0 |
Data: LTM Q1 FY27 investor presentation . PAT ex-exceptional for Q3 and Q4 FY26 removes a one-time labour-code charge.
Randstad acquisition: a cash-funded thrust into Europe
Through its UK subsidiary, LTM entered a put option to acquire Randstad’s technology and consulting subsidiaries in the Netherlands, Australia, France and five other countries for an enterprise value of up to €160 million on a cash‑free, debt‑free basis . The target brings roughly €469 million in annual revenue, about 2,900 skilled professionals, and deep domain expertise in aerospace & defence, automotive, utilities and banking — all sectors where LTM has little or no presence today . The acquisition also adds onshore and nearshore delivery centres in Romania and Portugal, strengthening sovereign‑compliant AI capabilities for regulated European clients . Management expects no material impact on EBIT margin in FY27, with synergies and revenue accretion starting from year two .
What to watch
- Deal closure and integration — the Randstad acquisition significantly expands LTM’s addressable market in Europe, but timelines and integration costs are yet to be detailed.
- Growth momentum — with order inflow at $1.68 billion and a large‑deal pipeline that includes a major multinational engagement flagged last month, the revenue trajectory will test management’s confidence of sustaining industry‑leading growth through FY27 .
- Margin levers — the New Horizons efficiency programme, AI‑led productivity and a favourable offshore mix (85.8% of effort) are expected to keep margins stable even as the company invests in scaling .
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