LTM Q2 FY27 Results (NSE: LTM)
Signal: Growth decelerated
The read
Revenue growth remains healthy at 13.6% YoY but cooled from 18.0% in Q1FY27; EBIT grew 11.5% to 18381 million while margin slipped 30bps to 15.6%, and PAT was flat because other income fell 69.5% to 915 million. The mix is improving through Technology & Services and Production, but weaker cash conversion and rising CWIP versus falling depreciation require monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹11,807.6 Cr | +13.6% | +1.7% |
| EBIT | ₹1,838.1 Cr | +11.5% | |
| Net profit | ₹1,379.9 Cr | -0.1% | |
| EPS | ₹47.15 | -0.3% | |
| EBIT margin | 15.6% |
P&L walk
Revenue increased to 118076 million, but PAT was broadly flat at 13799 million as lower other income and higher sub-contracting costs offset stronger operating profit; EBIT rose 11.5% to 18381 million while EBIT margin eased to 15.6%.
Segments
Technology & Services and Production drove operating momentum: their segment results rose 29.5% and 26.5% YoY to 5118 million and 4570 million respectively, while Financial Services dragged with a 4.7% result decline to 6395 million despite 8.7% revenue growth.
Key positives
- Consolidated revenue reached 118076 million, up 13.6% YoY, while EBIT rose 11.5% to 18381 million despite quarterly growth moderating to 1.7%.
- Technology & Services segment result increased 29.5% YoY to 5118 million and Production segment result increased 26.5% to 4570 million, materially outpacing consolidated revenue growth.
- Employee costs rose 9.5% YoY to 70821 million, slower than revenue growth of 13.6%, lowering employee-cost intensity to 60.0% from 62.3%.
Key concerns
- PAT was flat at 13799 million despite 11.5% EBIT growth because other income fell 69.5% YoY to 915 million.
- Sub-contracting expense rose 41.2% YoY to 11366 million, substantially faster than revenue and offsetting part of the operating improvement.
- Operating cash flow declined 23.3% YoY to 16989 million in H1FY27 despite 13.6% quarterly revenue growth.
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