LTM Ltd Q2 FY27 Results Analysis: Revenue Jumps 13.6%, Order Inflow Slips 25%
LTM Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 11,807.60 Cr (+13.60% YoY) and PAT growth of -0.10% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 16, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 11,807.60 Cr (+13.60% YoY) |
| PAT (Q2) | Rs. 1,379.90 Cr (-0.10% YoY) |
| EBITDA margin | 17.73% (-84 bps YoY) |
| EPS (Q2) | Rs. 47.15 (-0.30% YoY) |
| Market cap | Rs. 129,757.17 Cr |
| CMP | Rs. 4,390.00 |
Quarter Snapshot
Revenue grew 13.6% YoY to Rs.11,807.60 Cr with constant-currency QoQ growth accelerating to 1.1% from 0.3%, but PAT was flat at Rs.1,379.90 Cr as EBITDA margin compressed 84 bps YoY on a 41.2% rise in sub-contracting costs. Order inflow dropped 25% QoQ to $1.26 Bn — the lowest since Q1 FY26 — and Q2 operating cash flow fell 54% YoY to Rs.542.20 Cr, while meeting FY27 guidance of >6% USD growth requires ~7-8% H2 acceleration. Enterprise AI and Business AI grew 47% YoY and the company remains debt-free with Rs.15,640.80 Cr in cash and investments.
Key Investment Insights
Key Positives
- Revenue grew 13.6% YoY to Rs.11,807.60 Cr (+1.7% QoQ); constant-currency QoQ growth accelerated to 1.1% from 0.3% in Q1
- Consumer (+17.4% YoY), Production (+16.2% YoY) and Technology & Services (+15.2% YoY) led segment growth; Financial Services grew 8.7% YoY with +3.6% QoQ recovery
- Enterprise AI and Business AI together grew 47% YoY per the investor release
- Technology & Services EBITDA margin expanded 254 bps YoY to 22.89% and Production expanded 158 bps to 19.41%; employee cost ratio improved 224 bps YoY to 59.98% of revenue
- Interim dividend of Rs.25 per share declared, aggregating Rs.740 Cr
- Debt-free balance sheet with Rs.15,640.80 Cr cash and investments; ROCE improved 100 bps YoY to 28.5%
- TTM attrition fell 90 bps YoY to 13.3%; offshore effort mix rose 70 bps YoY to 85.9%
Risk Factors
- Order inflow fell 25% QoQ to $1.26 Bn, the lowest since Q1 FY26, contradicting management's prior 'order book and pipeline strong' claim
- PAT declined 0.1% YoY and 6.0% QoQ to Rs.1,379.90 Cr despite 13.6% revenue growth; EBITDA margin compressed 84 bps YoY to 17.73%
- Sub-contracting expenses rose 41.2% YoY and other expenses 25.5% YoY, both outpacing revenue growth
- Q2 operating cash flow fell 54% YoY to Rs.542.20 Cr; H1 CFO/PAT at 0.60x and Q2 FCF of Rs.329.40 Cr vs Rs.999.30 Cr a year ago
- Financial Services margin compressed 220 bps YoY to 15.63% and Consumer margin compressed 336 bps to 15.52%
- Active clients declined to 729 (from 740 QoQ and 749 YoY); FY27 guidance of >6% USD revenue growth requires ~7-8% H2 acceleration vs 4.7% in Q2
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.