- LTM expects AI-linked business to make up 50% of revenue in five years
- AI revenue was 12.2% of LTM's quarterly revenue, higher than TCS and HCLTech
- LTM reported Q1 net profit of Rs 1,466 crore, up 5.3% sequentially
IT giant LTM expects artificial intelligence linked business to contribute nearly 50% of its total revenue within five years, highlighting the company's push to capitalise on the AI boom.
Speaking on AI revenue, Venu Lambu, CEO and MD of LTM told NDTV Profit, "As part of our five-year plan, we expect AI revenue to be at 50% of our revenue mix. In order to do that, we are doing a lot of things in terms of talent and transformation, reimagining partner systems and so on," while expecting the momentum to continue in the rest of the fiscal. Noting a good start to the fiscal, Lambu also highlighted the company's plan to boost AI revenue, while adopting a very focused approach.
LTM's AI Revenue
The IT major reported AI-related revenue for the first time, estimating it to be at 12.2% of its quarterly revenue at $150 million, giving it a higher AI revenue share than larger peers TCS and HCLTech.
LTM's disclosure marks one of the first instances when an Indian IT company has quantified AI revenue as a portion of its overall sales. Compared to other IT giants, AI contributes a higher share in LTM's revenue. Notably, TCS generates higher AI revenue in absolute terms, it contributes a lower share of its business at about 8.5% of annualised revenue, while HCLTech's AI business contributed $155 million, or 4.2% of quarterly revenue.
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LTM Q1FY27 Results
On July 11, LTM announced April to June quarter earnings reporting a 5.3% sequential jump in net profit. The company's consolidated bottom-line came in at Rs 1,466 crore, meeting analysts' estimates of Rs 1,432 crore. In the preceding quarter, LTM reported a net profit of Rs 1,392 crore.
Revenue from operations rose 2.8% to Rs 11,608 crore from Rs 11,292 crore in the previous quarter. Analysts had pegged the IT company to post a topline of Rs 11,544 crore.
In terms of operations, earnings before interest and taxes also jumped 5.3% to Rs 1,799 crore from Rs 1,709 crore, in-line with D-Street expectations of Rs 1,744 crore. Margin expanded to 15.5% in the quarter under review, from 15.1% in Q4 of fiscal 2026.
The company's 12-month attrition was around 13.3% in the first quarter. Order inflow edged down 0.3% sequentially to $1.68 billion. Employee headcount stood at 87,886 at the end of the quarter.
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