LTM Q2 results: revenue up 13.6%, profit dips 5% on quarter as orders fall
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IT services firm LTM reported Q2 FY27 revenue of about Rs 11,808 crore, up 13.6% a year, on October 16, 2026; profit fell 5% on quarter and order inflow eased to $1.26 billion.
What Happened
Indian IT services company LTM reported its results for the July to September 2026 quarter (Q2 FY27) on Friday, October 16, 2026, showing double-digit revenue growth from a year earlier but a sequential dip in profit and a sharp fall in new orders. Revenue rose about 13.6% year on year to around Rs 11,808 crore. Net profit was about Rs 1,398 crore, roughly 5% lower than in the April to June quarter, according to most reports. Order inflow for the quarter came in at $1.26 billion, down from $1.68 billion in the previous quarter. The board declared an interim dividend of Rs 25 per share.
Key Facts
- Revenue: about Rs 11,808 crore, up 13.6% year on year and 1.7% on the previous quarter.
- In dollar terms, revenue grew 1.1% on the quarter and 5.1% year on year in constant currency.
- Net profit: about Rs 1,398 crore, down roughly 5% from about Rs 1,466 crore in Q1 FY27, according to most reports.
- Operating profit (EBIT) was $192 million, up 2.8% year on year; EBIT margin rose 10 basis points on the quarter to 15.6%.
- Order inflow: $1.26 billion, against $1.68 billion in Q1 and $1.59 billion a year earlier.
- The company's AI-related revenue grew about 40%, according to its results presentation as reported.
- Interim dividend of Rs 25 per share (face value Rs 1); record date October 23, 2026.
Why It Matters
LTM's numbers are a snapshot of where Indian IT services stand as clients shift budgets toward artificial intelligence. On the positive side, revenue is still growing, margins held steady at 15.6%, and the company says its AI-linked revenue is rising quickly. That supports the view that enterprises are spending on AI-led projects and are turning to service firms to deliver them.
The weak spot is new business. Order inflow is an early indicator of future revenue, and LTM's fell by about a quarter from the previous quarter and was also below the level of a year ago. If that continues, revenue growth could slow in the coming quarters. Analysts and investors will look for comments from management on the deal pipeline and on whether large clients are delaying decisions.
The profit dip on the quarter, despite higher revenue, also shows that costs are rising. Wage increases, investment in AI capabilities and pricing pressure can all squeeze earnings even when sales grow. For the wider sector, LTM's results arrive in the same week as those of other large IT firms, giving investors several readings on demand at once.
| Measure | Q2 FY27 | Comparison |
|---|---|---|
| Revenue | about Rs 11,808 crore | +13.6% YoY, +1.7% QoQ |
| Net profit | about Rs 1,398 crore | about -5% QoQ |
| EBIT margin | 15.6% | +10 basis points QoQ |
| Order inflow | $1.26 billion | $1.68 billion in Q1 |
| Interim dividend | Rs 25 per share | record date Oct 23 |
Impact
Short-term: The share price will react to the mix of steady revenue, softer profit and lower order intake when trading resumes on Monday. Shareholders on the register on October 23 will receive the Rs 25 dividend.
Long-term: Rising AI revenue could become a larger part of the business and support growth, but only if order inflow recovers. A sustained fall in new deals would point to slower growth next year.
Who is affected: LTM's shareholders and employees, enterprise clients modernising their systems with AI, other IT services companies whose results are compared against LTM's, and investors in IT sector funds.
Key Takeaway
LTM grew revenue by 13.6% and kept margins steady in Q2 FY27, but a dip in profit and a fall in order inflow to $1.26 billion make new deal wins the key thing to watch.
Questions and Answers
What were LTM's Q2 FY27 results?
Announced on October 16, 2026, LTM's revenue was about Rs 11,808 crore, up 13.6% from a year earlier, and net profit was about Rs 1,398 crore, roughly 5% lower than the previous quarter, according to most reports.
What is LTM's order inflow for the quarter?
Order inflow was $1.26 billion, down from $1.68 billion in the previous quarter and $1.59 billion a year ago.
Has LTM declared a dividend?
Yes. The board approved an interim dividend of Rs 25 per share with a face value of Rs 1. The record date is October 23, 2026.
How is LTM's AI business doing?
According to the company's results presentation as reported, its AI-related revenue grew about 40% in the quarter.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
Reported, fact-checked and published by the Peepals Global Editorial Team.
