LTM Q4 Preview: Margin Faces Pressure Even As Growth Seen Holding Up

LTM, formerly LTIMindtree, is expected to report steady March-quarter growth, supported by deal ramp-ups and strength in hi-tech and healthcare, while margins may come under pressure from wage hikes, pricing resets and delayed project execution.

Bloomberg estimates indicate revenue may rise 4% quarter-on-quarter, while EBIT is seen 1% lower and profit 43% higher. EBIT margin is projected to decline to 15.37% from 16.11% in the previous quarter. Net employee additions are estimated at 2,154. Brokerages broadly expect constant currency revenue growth of around 1%-1.5% for the quarter.

The key question this quarter is whether LTM can sustain growth momentum while protecting profitability as execution delays and wage costs weigh on margins. Investors will focus on the pace of public-sector project ramp-ups, spending trends in its top accounts, deal wins, exposure to the Middle East, and management commentary on FY27 growth under the new chief executive.

LTM Q4 Preview (Consolidated, QoQ, Bloomberg Estimates)

• Revenue seen 4% higher at Rs 11,190 crore versus Rs 10,781 crore
• EBIT seen 1% loser at Rs 1,720 crore versus Rs 1,737 crore
• EBIT margin seen at 15.37% versus 16.11%
• Profit seen 43% higher at Rs 1,391 crore versus Rs 971 crore

Here's what analysts are expecting from LTM Q4 results

DAM Capital

• Expects Q4 growth of about 1%-1.5% quarter-on-quarter in constant currency, slower than recent run rates.
• Delay in CBDT execution seen as a drag on growth.
• All verticals except BFSI expected to post positive growth.
• Hi-tech and manufacturing expected to grow, with some Middle East weakness.
• Healthcare supported by a large deal pipeline.
• BFSI impacted by a top client.
• Deal wins expected at $1.5-1.6 billion.
• Margins expected to decline about 100 basis points due to wage hikes.
• Focus areas include CBDT timeline, BFSI recalibration, Middle East exposure and next-year guidance.

Kotak Institutional Equities

• Forecasts 1.6% quarter-on-quarter revenue growth driven by PAN 2.0 and a recently won media mega deal.
• Growth seen lower than potential due to CBDT delays.
• Financial services expected to remain under pressure, while hi-tech may post robust growth.
• EBIT margin expected to decline 70 basis points sequentially.
• Foreign exchange loss may limit profit growth versus EBIT growth.
• Deal total contract value expected around $1.6 billion.
• Focus on top accounts, pricing trends, large deals, Middle East impact, AI opportunities and medium-term profitability.

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Citi

• Expects revenue growth of about 1.5% in constant currency.
• Margins likely to decline about 60 basis points despite currency support, largely due to wage hikes.
• Deal total contract value expected around $1.5 billion.
• Focus areas include deal wins, outlook commentary and medium-term margin trajectory.

Nuvama

• Expects revenue growth of 1.5% quarter-on-quarter in constant currency and 1.7% in dollar terms.
• Strong momentum expected in hi-tech and healthcare.
• Weakness seen in BFSI, delayed PAN deal billing and some Middle East-related deferment.
• Margins expected to decline 100 basis points due to wage hikes, selling costs normalisation and fewer billing days.
• Deal wins expected to remain healthy.

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Nomura

• Focus areas include discretionary spending trends amid US macro volatility, AI impact, Middle East exposure, cost takeout projects and BFSI outlook.

Jefferies

• Expects revenue growth of 1.5% quarter-on-quarter in constant currency.
• Growth impacted by recalibration in top accounts, slower public-sector ramp-up and deferred Middle East billings.
• Margins expected to decline 80 basis points due to wage hikes and revenue rescoping, partly offset by currency benefits and Fit for Future programme.
• Order book expected in the $1.4-1.6 billion range.
• Focus on FY27 outlook, top client trajectory, discretionary spending, budgets and any strategy shifts under the new chief executive.

Goldman Sachs

• Expects Q4 revenue growth to slow due to Middle East exposure, project ramp-up delays and productivity pass-through.
• Strength in other verticals expected to partly offset these pressures.
• EBIT margins expected to be impacted by wage hikes and higher selling, general and administrative costs.

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