LTM Q4 results: Profit jumps 45% sequentially, margins contract; dividend declared

LTM Ltd reported a steady March quarter, with revenue rising 4.7% sequentially to ₹11,291.7 crore, beating the CNBC-TV18 poll estimate of ₹11,155 crore. Constant currency growth came in at 1.4%, largely in line with Street expectations, even as margins remained under pressure.

Net profit stood at ₹1,387 crore, up 44.6% quarter-on-quarter and marginally ahead of estimates of ₹1,375 crore, aided by a low base.

Operationally, performance was mixed. EBIT came in at ₹1,709.4 crore, slightly above estimates, but margins contracted to 15.1% from 16.1% in the previous quarter, missing expectations of 15.2%.
Management flagged strong deal momentum and a healthy pipeline. CEO & MD Venu Lambu said the company has accelerated its shift to an AI-led model, backed by its BlueVerse platform and large-scale talent transformation. He added that efficiencies from the Fit4Future programme and continued large deal wins are strengthening its “Business Creativity” positioning.

LTM FY26 results

For FY26, revenue stood at ₹42,307.6 crore, while net profit came in at ₹4,982.7 crore. The board recommended a final dividend of ₹53 per share, subject to shareholder approval.

Management had earlier indicated that wage hikes would be spread across the March and June quarters, with an estimated 100 basis points impact in each quarter, partly offset by operational efficiencies.

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The company continues to target improved margins over FY26, supported by its “Fit for Future” programme, though analysts believe the journey toward the 17–18% margin band may take time.

On the demand front, the BFSI vertical is expected to stabilise after recent headwinds, while segments such as hi-tech and healthcare are likely to drive growth. Order inflows are expected to remain steady, with large deal ramp-ups, including government-led projects, being closely tracked by investors.

The Street will also watch commentary on the sustainability of the company’s growth trajectory, especially amid some near-term uncertainty due to billing deferments in the Middle East and global macro headwinds.

Shares of the company closed nearly 2% lower ahead of the Q4 earnings result announcement on Thursday, at ₹4,514.40. The stock has gained almost 10% over the last month.

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