Indian IT firm LTM beats second-quarter revenue view (updated)

LTM

16/10/2026 12:55

Updates with share move, deal wins, and details of revenue growth
Oct 16 (Reuters) - Indian IT services firm LTM LTM.NS, formerly known as LTIMindtree, beat second-quarter revenue estimates on Friday as its consumer and tech segments performed strongly, but missed profit forecasts.
Consolidated revenue rose 13.6% year-on-year to 118.08 billion rupees ($1.24 billion) in the quarter ended September 30. Data compiled by LSEG showed that analysts, on average, expected 117.79 billion rupees. 
AI is disrupting India's $315-billion software services sector by undermining its billable hour business model, but is also creating new demand as clients buy services built on the technology. Companies are ramping up investments to capture this emerging demand and cushion the hit to their core business.
LTM's revenue after stripping out currency fluctuations grew 5.1% in the second quarter. However, revenue from its consumer and tech segments outstripped that, growing 8.6% and 7%, respectively, on the same basis.
Revenue from LTM's AI-native business grew 47% year-on-year, CEO Venu Lambu said in a statement, though he did not disclose the amount. In July, when the company first announced the metric, it said it derives $150 million in revenue on a quarterly run-rate basis across three AI-native businesses.
Consolidated profit fell about 0.2% to 13.98 billion rupees ($147.22 million). Analysts had expected profit of 15.20 billion rupees.
Deal wins for the quarter stood at $1.26 billion, down from $1.68 billion in the preceding quarter and $1.59 billion in the year-ago period. 
Larger rivals Tata Consultancy Services TCS.NS, HCLTech HCLT.NS and Wipro WIPR.NS suggest demand has remained broadly resilient despite growing concerns over AI-led disruption, but have not flagged signs of significant improvement.  
Shares of LTM closed 3.7% higher on Friday ahead of its results, broadly in line with a 3.9% surge in the Nifty IT index .NIFTYIT, which logged its steepest weekly gain in 18 years.
($1 = 94.9600 Indian rupees)

 (Reporting by Surbhi Misra and Haripriya Suresh in Bengaluru; Editing by Jochelle Mendonca and Sonia Cheema)
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