LTM's Q1 meets the script: 18% revenue growth, 120 bps margin gain
Revenue of ₹11,608 cr and profit of ₹1,468.6 cr were within analyst expectations, with margin improvement the standout. Stock catalyst remains the Randstad acquisition, not quarterly results.
— 10 earlier stories on LTM Ltd. →What's new
- Revenue rose 18% to ₹11,608 cr, net profit up 17.1% to ₹1,468.6 cr.
- EBIT margin expanded 120 bps to 15.5%.
- Board approved reclassification of Nabha Power from promoter to public.
Why this matters
For a ₹1.2 lakh crore IT major, these numbers are solid but expected. LTM's stock historically moves on deal wins and M&A, not quarterly beats. The margin uptick is positive, but without fresh guidance, the earnings alone aren't a re-rating catalyst.
What we're watching
- Progress on the Randstad acquisition (EUR 160m, announced May 2026).
- Order intake and pipeline for Q2 FY27.
- Nabha Power reclassification timeline and any regulatory hurdles.
The full read
LTM's Q1 FY27 numbers are steady. Revenue of ₹11,608 cr rose 18% YoY and net profit ₹1,468.6 cr gained 17.1%, while EBIT margins expanded 120 bps to 15.5%. For a company with a market cap of about ₹1.2 lakh crore and trailing P/E of 22, these results sit comfortably within consensus. The board also approved the reclassification of Nabha Power from promoter to public — a procedural move with no financial impact. What moves LTM's stock, however, isn't quarterly earnings: it's deal flow. The ongoing EUR 160m acquisition of Randstad's tech consulting arm, announced in May, remains the near-term narrative driver. Until that closes, the earnings beat alone may not offer the catalyst investors are waiting for. Solid, but not surprising.
Questions answered
- How does Q1 revenue compare to the previous quarter?
- Q1 revenue of ₹11,608 cr is higher than the Mar 2026 quarter's ₹11,292 cr, indicating steady sequential growth.
- What drove the 120 bps margin expansion?
- The filing doesn't specify drivers, but margin improvement is broad-based. It partially reverses the 15.2% margin reported in trailing four quarters.
- What is the significance of Nabha Power reclassification?
- It's a purely procedural move—moving Nabha Power from promoter to public category—with no financial impact. It awaits regulatory approvals.
- Does LTM carry any debt?
- No. The company is debt-free (debt/equity ratio 0.00), which provides financial flexibility for acquisitions like the Randstad deal.
- Is the Q1 result sufficient to justify the current valuation?
- At 22x trailing P/E, the results are in line with expectations. A re-rating likely requires a bigger order win or successful completion of the Randstad acquisition.
LTM Ltd.
Latest quarter · Jun 2026
Strength & growth
Story so far
All notes on LTM →- 11 Jul 2026 · 7:05 PM IST LTM's Q1 meets the script: 18% revenue growth, 120 bps margin gain
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