LTM Q2 FY27: PAT flat YoY at ₹1,380 Cr as margins compress, order inflow slides 25% QoQ

LTM (formerly LTIMindtree) posted consolidated Q2 FY27 revenue of ₹11,807.6 Cr (US$1,235.2 Mn), up 13.6% YoY and 1.7% QoQ, but net profit of ₹1,379.9 Cr was essentially flat YoY (-0.09%) and down 6.0% QoQ. EBIT margin held near 15.6% (+10 bps QoQ, -30 bps YoY), while reported PAT margin slipped to 11.7% from 12.7% in Q1 FY27 and 13.3% a year ago. Diluted EPS of ₹47.11 (basic ₹47.15) came in well above the ₹42.5 consensus baked into pre-result estimates, even as the bottom line itself barely moved. Standalone PAT was ₹1,351.9 Cr on revenue of ₹11,276.4 Cr, tracking the consolidated trend closely with no material divergence in growth rate.

The QoQ profit dip is largely a base-effect story rather than fresh deterioration: Other Income fell to ₹298.2 Cr from ₹521.8 Cr in Q1 FY27 because Q1 had included a one-off ₹197.8 Cr fair-value gain on Voicing.AI convertible instruments (filing note 5) that did not recur. Strip that out and operating performance actually improved sequentially — EBIT rose 2.2% QoQ to ₹1,838.1 Cr. The YoY picture is less flattering: EBIT margin compressed 30 bps from 15.9% a year ago, and the effective tax rate held near 25.8%, so the squeeze shows up above the tax line. Growth was also uneven by segment — Financial Services, still the largest vertical at 34.7% of revenue, grew just 0.2% YoY in USD, while Consumer (+7.7%), Technology & Services (+6.7%) and Production (+7.0%) carried the topline.

The stock went into the print at ₹4,390, up 3.7% over the past month of trading.

For context: revenue is at a 6-quarter high.

Management's prior concall guidance had called for revenue growth to accelerate through Q2 and into H2, surpassing FY26 levels, with continuing margin expansion — neither played out as described: YoY revenue growth actually decelerated to 13.6% from 18.0% in Q1 FY27, and EBIT margin compressed YoY rather than expanded, even though it did hold its own ~15.5% sequential bar. The clearest red flag is order inflow, which fell to $1.26 Bn from $1.68 Bn in Q1 FY27 (-25% QoQ) and $1.59 Bn a year ago (-21% YoY) — well short of the $1.6-1.8 Bn range flagged as a pre-result watch item. That sits awkwardly next to five newly disclosed strategic deal wins this quarter (banking, construction, insurance and industrial-services clients) and the addition of a new Financial Services account to the $100 Mn+ tier (now 3 clients), suggesting large-account depth held even as aggregate booking value softened.