Latent View Q1 FY27 Results (NSE: LATENTVIEW)
Signal: Growth decelerated
The read
Revenue growth continued at a healthy 21.5% YoY, but PAT declined 5.3% YoY as employee costs outpaced revenue (23.1% YoY growth) and other income fell. EBITDA margin held steady at 27.2%. An ongoing legal dispute over the DPPL acquisition (auditor emphasis of matter) and a CEO change mark the quarter.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹286.88 Cr | 21.5% | -72.9% |
| EBIT | ₹66.78 Cr | 3.9% | |
| Net profit | ₹48.13 Cr | -5.3% | |
| EPS | ₹2.33 | -5.3% | |
| EBIT margin | 23.3% |
P&L walk
Revenue grew 21.5% YoY but employee costs rose faster (23.1% YoY) causing a 130bps increase in employee cost ratio; EBITDA margin was flat at 27.2% as other income declined 9.1% YoY; net profit fell 5.3% YoY due to higher depreciation and lower other income.
Key positives
- Revenue growth of 21.5% YoY, maintaining above-20% trajectory
- EBITDA margin stable at 27.2% despite cost headwinds
- Strong balance sheet with negligible debt (D/E 0.02)
Key concerns
- Net profit declined 5.3% YoY as employee costs grew faster than revenue
- Other income (₹21.29 Cr) is 32.6% of PBT, making reported earnings reliant on non-operating items
- Standalone revenue growth slowed to 8.1% YoY, indicating subsidiary-driven growth
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.