Shares of LTM will be in focus today, July 13 after the IT firm announced first quarter results for the fiscal 2027. The company declared earnings on Saturday, July 11, reporting a 5.3% sequential growth in net profit.
LTM's consolidated bottom-line stood at Rs 1,466 crore, meeting analysts' estimates of Rs 1,432 crore. In the preceding quarter, the IT major posted 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 rose 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.
Here's what brokerages are saying -
Brokerages such as JPMorgan, Morgan Stanley, Citi, and Kotak Securities remained mixed on LTM shares after its Q1 results, maintaining Neutral, Equal-weight, Sell, and Reduce coverage, respectively, while acknowledging resilient margins and management's confidence in stronger FY27 growth.
Both JPMorgan and Citi cut target price to Rs 4050 and Rs 3455, marking an upside of 0.3% and downside of 14% respectively from its closing price on Friday. Meanwhile, Morgan Stanley set a target price of Rs 4,000 and Kotak Securities hiked target price to Rs 3900, a downside of 0.9% and 3%.
The brokerages said margin expansion, AI-led revenue traction, and the expected CBDT deal ramp-up are positives, but weak revenue growth and rich valuations continue to limit upside for the stock.
JPMorgan on LTM
- Maintain Neutral; cut target price to Rs 4050 from Rs 4200
- Q1 print mixed; Optimism on rest of FY27
- Discloses AI lead revenues at 12% of total
- Margins have levers; to expand for the rest of FY27
Morgan Stanley on LTM
- Maintain Equal-weight with target price of Rs 4000
- Q1: Lack of revenue growth downgrades a positive but already priced in
- Revenue in line, margins ahead of expectations
- Key verticals and top client buckets performed well
- Management reiterated expectation of FY27 revenue growth exceeding FY26
- CBDT deal expected to ramp up in Q2
Citi on LTM
- Maintain Sell; cut target price to Rs 3450 from Rs 3455
- Q1 largely inline; subcontractors led growth
- Management commentary – Confident about growing in Q2 and continuing momentum into H2
- Below consensus estimates are largely unchanged
- Expect LTM to deliver ~5% CAGR in organic revenues over FY26-28
Kotak Securities on LTM
- Maintain Reduce; hike target price to Rs 3900 from Rs 3700
- Good execution but hard-pressed for growth acceleration
- In-line revenue and EBIT margins; revaluation gain helps offset sharp forex loss
- Reasonable execution but not enough for significant growth acceleration
- Stock does not offer considerable upside from the current levels
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