LTM (formerly LTIMindtree) announced its first-quarter results for the fiscal year 2027, revealing a modest 16.9% year-on-year increase in consolidated net profit. Despite this muted growth, leading brokerages Nuvama and Motilal Oswal have maintained their 'Buy' ratings on the stock, citing healthy deal momentum and a confident outlook for the remainder of FY27.
Q1FY27 Financial Performance Overview
For the quarter ended June 30, LTM posted a consolidated net profit of Rs 1,466.3 crore, an increase from Rs 1,254.1 crore in the corresponding quarter last year. Revenue from operations also saw a significant boost, rising 17.9% year-on-year to Rs 11,608 crore, up from Rs 9,840.6 crore a year ago. Sequentially, revenue also edged higher from Rs 11,291.7 crore reported in the preceding quarter.
The company's operating margin improved to 15.5% in the first quarter, expanding by 120 basis points from the year-ago period and 40 basis points compared with the March quarter, reflecting enhanced operational efficiency. LTM also reported robust deal momentum during the quarter, with order inflows reaching approximately $1.68 billion, marking a 3.1% increase from a year earlier. Its trailing 12-month order book stood strong at $6.65 billion, primarily supported by growing demand for its artificial intelligence-led offerings and digital transformation services.
Brokerage Outlooks and Price Targets
Nuvama's Perspective
Brokerage firm Nuvama maintained a 'Buy' call on LTM stock following the Q1FY27 performance, which it termed a 'weak start'. Nuvama noted that the soft results raise the 'ask rate' for LTM to meet its guidance of higher growth in FY27 over FY26. Despite this, they expect current valuations, with LTM trading at 19x FY27 PE, to sustain given the recent market correction.
Motilal Oswal's Analysis
Motilal Oswal (MOSL) also assigned a 'Buy' rating to LTM, setting a target price of Rs 4,900, which suggests a 21% upside. MOSL highlighted LTM's expressed confidence that its revenue growth in FY27 will surpass FY26. If achieved, this guidance would position LTM among the fastest-growing players within India's top six IT services firms. This optimistic outlook follows a challenging phase of productivity-related pricing adjustments, which LTM has largely absorbed, potentially giving it a competitive edge in navigating industry pricing pressures and AI-led transformations.
Strategic Initiatives and Future Growth
LTM continued to improve profitability in the June quarter, with its EBIT margin rising sequentially, supported by foreign exchange gains and ongoing cost optimisation initiatives. The company is actively strengthening its talent pipeline, having hired around 1,300 fresh graduates during the first quarter and expecting to onboard more than 6,000 freshers over FY27 to build an AI-ready workforce. Management indicated a strategic shift towards a more diamond-shaped employee pyramid, emphasizing experienced and specialised talent.
The company's artificial intelligence business continued to gain traction, with AI-related revenue reaching an annualized quarterly run rate of nearly $150 million. Client spending also showed signs of improvement, with top five clients delivering 4.5% quarter-on-quarter growth in constant currency terms. LTM is currently awaiting regulatory clearances for the acquisition of Randstad's IT business, a transaction expected to conclude during the third quarter of FY27.