LTM Limited reported a robust Q2 FY2027 performance, with revenues reaching USD 1.24 billion, marking a 5.1% year-over-year growth in constant currency. The company highlighted significant progress in its AI-centric strategy, with AI revenue contributing 13.4% of overall revenue and growing 40% year-over-year. Notable deal wins and strategic partnerships in the AI space were discussed, alongside positive financial outlooks and margin improvements.
LTM Limited Reports Strong Q2 FY2027 Performance Driven by AI Growth
LTM Limited has announced its financial results for the second quarter of FY2027, showcasing strong growth and strategic advancements, particularly in its Artificial Intelligence (AI) initiatives. The company reported total revenues of USD 1.24 billion, representing a 1.1% growth sequentially and a 5.1% growth year-over-year in constant currency. This performance reflects a disciplined execution of its business strategy.
AI-Centric Transformation and Revenue Growth
A key highlight of the quarter was the significant progress towards becoming an AI-centric organization. AI revenue for the quarter reached 13.4% of the company’s overall revenue, demonstrating a substantial 40% year-over-year growth. Including enterprise AI, cumulative AI revenue grew by an impressive 47% year-over-year. This surge in AI adoption and revenue is driven by client spend shifting towards AI deployment cycles, impacting business processes, scaling contextual implementations, and optimizing economics.
Notable Deal Wins and Partnerships
LTM secured several notable deals this quarter, including strategic technology partnerships with a leading global banking institution, a North American construction company, and a U.S.-based insurance company, all focusing on AI-led transformation. The company also expanded its relationship with a U.S. property and casualty insurer and partnered with a global CPG player for AI-driven marketing transformations. Strategic collaborations with partners like Anthropic, Glean, and Cognition are further strengthening LTM’s AI capabilities and its BlueVerse™ ecosystem.
Financial Highlights and Margin Performance
EBIT margins for the quarter stood at 15.6%, showing a 10-basis-point sequential improvement. The order inflow was reported at USD 1.3 billion, reflecting a healthy pipeline of AI-centric deals. The company reported basic EPS of ₹47.2 for the quarter. Operating cash flow to PAT ratio was 39%, impacted by advance payments and gratuity provisions, while free cash flow to PAT ratio stood at 24%. Cash and investment balances were robust at USD 1.6 billion.
Industry Segment Performance
Three of the four industry segments grew by over 7% year-over-year in constant currency terms. The Financial Services segment showed strong momentum with 3.1% sequential growth. Tech and Services delivered a healthy 7% year-over-year growth. The Consumer segment grew by 8.6% year-over-year, while the Production segment reported a 3.7% sequential growth. Geographically, America’s grew by 1.5% sequentially, and Europe by 1%, though the Rest of the World saw a 1.4% decline due to regional impacts.
Outlook and Future Strategy
LTM anticipates continued growth momentum in the second half of the fiscal year, with Q3 and Q4 expected to be stronger than Q1. The company is optimistic about achieving FY2028 targets, further bolstered by the expected closure of the Randstad Digital acquisition in Q3. The strategic focus remains on strengthening its AI capabilities, expanding its BlueVerse™ ecosystem, and pursuing value-accretive acquisitions. Management expressed confidence in navigating the evolving market dynamics and capitalizing on the AI revolution for sustained growth.
Source: BSE
