LTM profit jumps 17% to Rs 1,468 crore in April-June quarter

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LTM's managing director and chief executive, Venu Lambu, said the results reflect the progress in executing an artificial intelligence-centric strategy among other aspects and termed the order book as "strong" with a healthy pipeline across sectors. The compa…

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LTM chief executive Venu Lambu declared AI revenue separately for the first time in the earnings call, at $150 million for the quarter, in addition to announcing the completed transition to outcome-based pricing across its top 10 clients. The deal flow remained steady on a quarter-on-quarter basis at $1.68 billion, although it improved 3% year-on-year, with two large deals helping the deal momentum. AI Briefing logo

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AgenciesLTM Ltd, India’s sixth-largest tech service provider, reported a 17% increase in net profit year-on-year for the June quarter to Rs 1,468 crore, aided by improved operations, while sequentially it gained 9.4%.

Revenue for the first quarter of this financial year went up nearly 18% year-on-year to Rs 11,608 crore as deal momentum improved despite volatile market conditions. On a quarter-on-quarter basis, revenue increased 2.8%.

In dollar terms, revenue for the three months stood at $1.2 billion. Largely meeting market expectations, revenue, however, edged up 0.3% sequentially in constant currency terms.

The Mumbai-headquartered company’s results follow similar marginal organic revenue growth at the market leader, Tata Consultancy Services, which reported a 0.4% sequential growth in constant currency, amid continued market uncertainty and artificial intelligence (AI)-led deflation.

The deal flow remained steady on a quarter-on-quarter basis at $1.68 billion, although it improved 3% year-on-year, with two large deals helping the deal momentum.

LTM chief executive Venu Lambu declared AI revenue separately for the first time in the earnings call, at $150 million for the quarter, in addition to announcing the completed transition to outcome-based pricing across its top 10 clients.

“We will deal with anything that comes about in the quarter with regards to the geopolitical situation. But what is most important is that our growth verticals and our growth businesses are in the right position,” Lambu said. “Taken together, the order book, the AI proof points and the completion of this client transition give us confidence that our growth will accelerate through Q2 and into the second half (of the year) alongside further expansion on the margins.”

Growth was led by its second-largest vertical, consumer, increasing 18.2% year-on-year in constant currency terms, although sequentially it fell 0.7% due to delayed ramp-ups and projects in India and West Asia. Financial services, its largest sector, contributing about 34% to its revenue, declined 2.5%, even as it gained sequentially. Technology services and production grew 5.3% and 10%, respectively.

North America, its largest market, led growth, recording a 5.5% year-on-year increase in constant currency, followed by the rest of the world and Europe at 10.4% and 8.3%, respectively.

LTM’s operating margins expanded by 120 basis points year-on-year to 15.1%, driven by productivity gains under its Fit for Future programme and currency tailwinds. A basis point is a hundredth of a percentage point.

The company reduced its headcount marginally, with 87,886 employees on its payroll, although it added nearly 4,000 employees compared to the year-ago period. Attrition remained flat at 13.3%.
( Originally published on Jul 11, 2026 ) Add ET Logo

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LTM profit jumps 17% to Rs 1,468 crore in April-June quarter

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