Street View: India's LTM hit by short tenure AI-led deals, weakness in top clients

LTM

Mon 05:11

** IT services firm LTM LTIM.NS on Friday missed second-quarter profit estimates
** Q2 deal wins was $1.26 billion vs $1.68 billion in Q1 and $1.59 billion in Q2 FY26
** Stock down 4% at 4,214.80 rupees

CLIENT PRESSURE, DEAL FLOW DISAPPOINTMENT
** Ambit ("sell", PT: 3,480 rupees) sees risks in top clients making ask rates from rest of clients aggressive to drive street current estimates of ~7% USD growth
** ICICI Securities ("reduce", PT: 3,720 rupees) says order inflow below past four-quarter average of $1.66 billion, as most deals were shorter-tenure AI-led deals having higher annual contract value component but lower total contract value
** Jefferies ("underperform", raises PT to 3,480 rupees from 3,360 rupees) says Q2 revenue growth impacted by 60-70 bps due to Saudi-related business
** BOBCaps (upgrades to "hold" from "sell", PT: 4,300) says it expects better growth and margins due to LTM's harder pivot towards AI
** Centrum ("buy", cuts PT to 6,108 rupees from 6,162 rupees) says rating supported by AI-led revenue, healthy order inflows, broad based demand, and recovery in Technology & Services from Q3 support revenue visibility

 (Reporting by Saikeerthi in Bengaluru)
 ((Saikeerthi@thomsonreuters.com;))