Latent View Q2 FY27 Results (NSE: LATENTVIEW)
Signal: Margin pressure
The read
The trajectory has shifted from Q1FY27's 21.6% revenue growth to 14.2% in Q2FY27, while EBIT margin recovered sequentially by 71bps but remained 191bps below the year-ago level because employee costs grew 20.6% versus revenue growth of 14.2%; the key inflection is margin stabilisation, not acceleration.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹294.07 Cr | +14.2% | +2.5% |
| EBIT | ₹48.71 Cr | +2.4% | |
| Net profit | ₹48.47 Cr | +6.0% | |
| EPS | ₹2.35 | +9.3% | |
| EBIT margin | 16.56% |
P&L walk
Revenue increased 14.2% YoY to ₹2,940.68 million, but employee costs rose 20.6% and EBITDA margin contracted 148bps to 20.33%; lower finance costs and other expenses supported PAT growth of 6.0% to ₹484.68 million.
Segments
The group reports a single business segment, analytics solutions, so no segment-level source of the 14.2% revenue growth or 148bps EBITDA-margin contraction is disclosed.
Key positives
- Revenue grew 14.2% YoY to ₹2,940.68 million and 2.5% sequentially, while H1 revenue rose 17.7% YoY to ₹5,809.44 million.
- EBITDA margin improved 56bps sequentially to 20.33% after the 20% OPM level reported in Q1FY27.
- Finance costs declined 68.6% YoY to ₹8.29 million, helping PAT grow 6.0% despite EBIT growth of only 2.4%.
- Basic EPS rose 9.3% YoY to ₹2.35, ahead of PAT growth of 6.0%.
Key concerns
- Employee costs rose 20.6% YoY to ₹2,025.11 million, 6.4 percentage points faster than revenue, lifting employee cost intensity to 68.9% of revenue.
- EBITDA margin contracted 148bps YoY to 20.33% and EBIT margin contracted 191bps to 16.56%.
- Operating cash flow fell 56.5% YoY to ₹249.63 million in H1FY27 despite H1 PAT of ₹955.71 million.
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