LTM (LTM) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 delivered strong performance with revenue of $1.18 billion, up 2.3% sequentially and 4.8% year-over-year in USD terms, and consolidated revenue of ₹103,943 million, reflecting year-over-year growth.

• EBIT margin expanded to 15.9%, driven by margin improvement initiatives and forex tailwinds, with PAT up 10.2% year-over-year.

• Order inflow reached $1.59 billion, up 22% year-over-year, with large deals signed across all five verticals and over 700 global clients.

• Strategic focus on AI-centric transformation, sales transformation, and operational excellence continues, with expanded alliances with AWS, Microsoft, and Google Cloud.

• Workforce exceeded 86,000, with over 80,000 employees completing Gen AI Foundation training.

Financial highlights

• Revenue: $1,180 million, up 2.3% QoQ and 4.8% YoY in USD; INR revenue crossed ₹10,000 crore; consolidated income for Q2 FY26 was ₹106,947 million.

• EBIT margin: 15.9%, up 160 bps sequentially; PAT: ₹1,381 crore, up 10.1% QoQ and 10.4% YoY; EPS at all-time high of ₹47.2.

• Operating cash flow to PAT: 85.6%; Free cash flow to PAT: 72.4%; net cash from operations for H1 FY26 was ₹22,156 million.

• Cash and investments: $1.58 billion (₹14,000 crore); cash and cash equivalents at period end were ₹19,199 million.

• Interim dividend of ₹22 per share declared, up 10% YoY.

Outlook and guidance

• Confident in sustaining profitable growth momentum, targeting near double-digit growth in H2 FY26.

• Optimistic about BFSI and overall growth, with large deal ramp-ups expected in Q3 and Q4.

• Wage hikes to be implemented in two tranches (Jan and Apr), reflecting a new normal.

• Margin expansion expected to continue, supported by productivity, pyramid correction, and cost levers.

• Results are in compliance with Indian Accounting Standards and have been reviewed and approved by the Board.