LTM (LTM) Q1 26/27 earnings summary

Executive summary

• Achieved profitable growth in Q1 FY 2027, driven by AI-centric strategy, strong deal momentum, and robust client additions, with revenue reaching $1,223.5 million, up 6.1% YoY and 0.1% QoQ in USD terms.

• AI-led revenue reached $150 million quarterly run-rate, with significant contributions from Creative, Industrial, and Business AI.

• Order inflow for the quarter was $1.7 billion, including two large deal wins and a 3.1% YoY increase, with a robust pipeline across industry segments.

• Continued recognition for AI leadership and innovation from industry analysts and partners.

• The company added 16 new clients, with active clients at 740 and total employees at 87,886.

Financial highlights

• Q1 revenue at $1.22 billion, up 0.3% sequentially and 6.4% YoY in constant currency; INR revenue was ₹116,080 million, up 18.0% YoY and 2.8% QoQ.

• EBIT margin at 15.5%, up 40 bps sequentially and 120 bps YoY; EBIT for the quarter was ₹17,993 million, up 27.9% YoY and 5.3% QoQ.

• Profit after tax at INR 14,686 million, up 9.5% QoQ and 17.1% YoY; PAT margin at 12.7%.

• Basic EPS at INR 49.5, up from INR 45.4 in Q4 FY 2026.

• Free cash flow for Q1 FY27 was ₹9,218 million; cash and investments stood at $1.5 billion or ₹150,213 million post-dividend payout.

Outlook and guidance

• Growth expected to accelerate in Q2 and H2, with margin expansion anticipated.

• Organic growth outlook positive, with large client transitions and productivity-linked pricing now complete.

• Management expressed confidence in continued growth momentum, citing a strong order book and healthy pipeline.

• The company’s AI-centric strategy is delivering tangible client outcomes and driving engagement wins.

• Geopolitical risks in the Middle East monitored, but region accounts for less than 3% of revenue.