LTM (LTM) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue reached $1,223.5 million, up 6.1% YoY and 0.3% QoQ in constant currency, with EBIT margin at 15.5% (+120 bps YoY, +40 bps QoQ) and net profit at $155 million, up 5.3% YoY and 6.7% QoQ.

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

• Order inflow stood at $1.68 billion, up 3.1% YoY, with a stable order book of $1.7 billion and two large deal wins.

• The company continues to execute its AI-centric strategy, driving profitable growth, strong client outcomes, and industry recognition for AI leadership and innovation.

• Added 16 new clients, with active clients at 740 and total employees at 87,886.

Financial highlights

• Q1 FY27 revenue was $1.22 billion (₹116,080 million), up 0.3% QoQ and 6.4% YoY in constant currency, and 18.0% YoY in INR.

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

• PAT was ₹14,686 million, up 17.1% YoY and 9.5% QoQ; PAT margin at 12.7%.

• Basic EPS at INR 49.5, up from INR 45.4 in Q4 FY26.

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

Outlook and guidance

• Growth expected to accelerate in Q2 and H2, with margin expansion anticipated; management confident in continued momentum supported by a strong order book and healthy pipeline.

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

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